Fuel hikes trigger surge in ride-hailing prices, leaving customers and drivers discontented
Following the removal of fuel subsidies, fuel prices nationwide have skyrocketed, triggering a struggle for profits and cost savings among riders, drivers, and ride-hailing platforms. In his inaugural speech as President of Nigeria, Bola Tinubu announced the removal of fuel subsidies. This announcement has had an instant impact on the transport sector, with prices rising rapidly, particularly in the ride-hailing space. “I paid 4k from Obalende to Victoria Island!” Tobi, a content manager living in Lagos told TechCabal, sharing that the usual fare for this trip was around 1,500 Naira before this week. Tobi has now switched to public transportation to manage costs. Some observers say that this rise in prices may convince ride-hailing companies to offer ride-sharing services to riders. But there are some trust and safety concerns to consider. Illy, who uses Uber and Bolt, told TechCabal, “I won’t share a ride because I don’t trust people. Instead, I use Rida and inDriver too when prices on Bolt are too high.” On the other hand, Tobi said, “I can use the ridesharing feature only with people I know. Otherwise I will opt for public transport, even public bus fares are even high.” A different tale While customers say the prices for rides have increased, drivers say the prices still do not cover their operating expenses. “Due to this fuel subsidy issue, I don’t go out, the prices they (Uber) give are ridiculous,” he said. “I just bought N1000 fuel worth 2 litres, where will 2 litres lead you? Now they will give a trip of 1500-1700 which would last up to 45 minutes, and I will spend nothing less than 5 litres on that trip, so tell me how much profit I’m going to make?” said Finbar, an Uber driver in Lagos. Finbar has stopped working for now, until Uber reevaluates its pricing. According to him, Uber hasn’t significantly raised prices despite the fuel price hike and it is affecting drivers’ earnings. “We have not seen any mail from Uber that indicates change of prices due to the fuel subsidy removal,” he noted. Tope Akinwunmi, Uber’s country manager, told TechCabal that Uber is staying on top of the situation. He said, “we are aware that the news of the recent fuel hikes and fuel subsidy removal is affecting drivers on our platform, and we are taking an indepth look into this. Drivers are at the heart of everything we do, and we are currently reviewing the situation, and gathering feedback from drivers and riders to inform future changes. Once we understand the implications, we will share an update.,” While several drivers who spoke to TechCabal are dissatisfied with the current prices on the ride-hailing app, Uber is wary of decreased patronage if prices are too high. “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,” Uber concluded. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreHow will a unified FX rate affect virtual card operations in Nigeria?
In his inaugural speech, President Bola Tinubu confirmed that his administration would work towards a unified exchange rate. What will this mean for the operations of virtual cards in the country? President Bola Tinubu’s plan to unify the country’s exchange rate—following advice from the World Bank and the International Monetary Fund (IMF)—is now the subject of several conversations. Experts say the current exchange rate regime has made international payments difficult. Yet, moving to a single, market-determined exchange rate will affect virtual card operations in Nigeria. What will happen to virtual cards? Uzoma Dozie, CEO/Founder of Sparkle Nigeria, says he doesn’t foresee any significant impact on the virtual card businesses in the country, considering the current operational landscape and existing policies. “However, operational costs for Naira-dominated virtual card businesses with a foreign exchange component may experience increased operating costs, which depend heavily on various local and global economic factors. We also need to consider that virtual cards are already operationally more cost-effective than physical cards because there are no production, transportation, storage, or delivery expenses to worry about. It is too early to start speculating now as we look forward to how this will play out,” he told TechCabal. For Ibrahim Toyeeb Ibitade, CEO of Leatherback, a cross-border payments platform, until Nigeria fixes its FX shortage, a unified exchange rate will not affect the operations of virtual cards. “The only time we will see any significant impact is when the country has been repositioned and restructured so that we can generate as much FX as needed by different sectors of the economy. But for now, there will still be that scarcity problem because Nigeria isn’t generating enough FX,” he said. Traditional banks are the potential winners The $20 monthly limit on foreign transactions for Naira cards opened up the market for virtual cards. Dozie explains that if the Central Bank chooses to expand the FX market by permitting banks unrestricted access to buyers, there is a possibility for an increase in supply. This could lead to banks raising the FX limit on naira cards. “With the potential for a unified exchange rate to further open the market, banks can access FX more efficiently than was previously possible. Hence we can expect banks and other providers to increase card limits, whether physical or virtual and a more competitive operating environment,” he added. Charles Odogwu, a digital payments expert, shares a similar view. “Banks are going to open their doors and encourage customers to use their naira cards. There is a possibility that banks might not have a limit cap on spending because the FX is available, and there is no disparity in the rates. But on the other side, if the banks put a limit on their cards, virtual dollar cards will still exist and remain go-to alternatives for most people,” he told TechCabal over a call. A virtual card user who spoke to TechCabal anonymously claims that, from his experience, banks are more efficient in processing payments than fintechs when it comes to card services. “As much as banks have inefficiencies in terms of their infrastructure, I still believe that they have a higher tendency to succeed than fintechs. You’d hardly hear of a traditional bank announcing a downtime in its card services,” he said. Where does this leave fintechs? For fintechs that offer virtual card services, an upward review in the limit on naira cards could potentially hurt their business. While more Nigerians have gotten comfortable with virtual cards, the questions of trust and security could convince them to switch back to naira cards. Odogwu argues that while onboarding is much easier with fintechs, unlike traditional banks, the latter remains ahead in terms of trust. “If you noticed what happened recently with the CBN revoking the licenses of over microfinance banks [some of which are fintechs], the reaction is that people are moving their money from fintechs—even those unaffected,” he said. But Dozie says only a few startups have built their business models solely on providing virtual cards. Instead, they are often available as part of a financial services offering. “We expect there will always be a niche and demand for virtual cards, and I do not see how the impacts of a unified exchange rate will disrupt or threaten businesses that offer or accept virtual cards,” he told TechCabal. Damilola Robert, a growth marketing manager at Bitnob, an African fintech that provides virtual dollar card services, notes that the question is really about what extra services fintechs can offer: “So if they [fintechs] are now competing about quality and products, then that means that they need to beef up their customer support system. The ability to leave a positive mark in people’s minds will determine how long they survive in the market because customers now have alternatives.” What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
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3 ways to check NHIF status 2023
The National Hospital Insurance Fund (NHIF) is a government-run medical insurance scheme in Kenya. As a policyholder, it is crucial to stay informed about your NHIF status to ensure uninterrupted access to healthcare benefits. This guide will provide a step-by-step explanation of how to check your NHIF status in Kenya. Ways to check your NHIF status You can check your National Hospital Insurance Fund status by using the following methods: SMS and USSD NHIF Mobile App NHIF Website How to use SMS/USSD to check your NHIF status You can easily check your National Hospital Insurance Fund status or get your details by sending an SMS (text message) with the format: ID {space} Your ID Number] e.g. (ID 12345678) to 1550. For USSD, simply dial *155#, and follow the easy prompts. How to check your NHIF status using app/website Once you can navigate the National Hospital Insurance Fund website, you’ll easily navigate the app to check your status 1. Visit the National Hospital Insurance Fund website To begin the process of checking your status, you will need to access the National Hospital Insurance Fund official website. Open your preferred web browser and enter the following address: www.nhif.or.ke. This will take you to the NHIF homepage, where you can find various information related to the scheme. 2. Navigate to the ‘Self-care’ section On the NHIF homepage, look for the “Self Care” tab or link. Clicking on this tab will redirect you to a page that provides several options for self-service functionalities. These functionalities include checking your status, contributions, and claims, among others. Enter your ID number and click “get OTP”. 3. Check NHIF status Once you have successfully logged in to your National Hospital Insurance Fund account, navigate to the section that allows you to check your status. The exact location of this section may vary depending on the website’s design and updates. Look for options such as “Check Status,” “Membership Details,” or similar terms. Click on the appropriate link or button to access your NHIF status. Final thoughts on how to check your NHIF status Staying up to date with your National Hospital Insurance Fund status in Kenya is crucial for availing yourself of healthcare benefits. By following the step-by-step guide provided above, you can easily check your NHIF status online through the official NHIF website. Regularly checking your status ensures that you can enjoy uninterrupted access to the medical services covered by National Hospital Insurance Fund. Do you want to learn how to pay for NHIF using Mpesa? Read this.
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Check TUT exam results 2023
Checking your Tshwane University of Technology (TUT) exam results is an important step towards tracking your academic progress. By following a few simple steps, you can easily access your results online. This guide will walk you through the process of checking your TUT exam results, ensuring that you stay informed about your academic performance. 1. Visit the TUT official website To check your exam results, start by opening your web browser and navigating to the official website of the Tshwane University of Technology. You can do this by entering the URL, “www.tut.ac.za,” into the address bar and pressing enter. This will take you to the TUT homepage, where you can access various resources related to your studies. 2. Navigate to the examination result portal Once you have reached the TUT homepage, look for the “Exam Results” table under the “Tools” section. Click on the link or button to access the TUT result portal, which serves as the gateway to your academic information to check your results. 3. Log in to the exam results portal On the results login page, enter your credentials, which usually include your student number and ITS PIN. Ensure that you enter the correct information to avoid any login issues. Then follow the on-screen instructions to complete the process. 4. Access your TUT exam results After accessing your exam results, take the time to review them carefully. You may find details such as your subject marks, overall grade, and any additional comments provided by your lecturers. If you wish to keep a physical copy, you can print your results using the print function of your web browser. That’s it about how to check your TUT results. Final thoughts on how to check TUT results Checking your TUT exam results is a straightforward process that can be completed through the TUT website. By following the steps outlined in this guide, you will be able to access your results and stay informed about your academic progress.
Read MoreKenya discontinues Huduma Namba, takes another try at digital identities
Kenya spent millions of dollars to roll out digital IDs named Huduma Namba. However, the project has since been discontinued, and the new government thinks it has a shot at rolling out similar digital IDs, but with additional features. To enhance the lives of its people, the Kenyan government is currently creating a new digital identification system. This system aims to offer citizens and residents a unique and easily verifiable digital identifier. By implementing this digital ID system, the government intends to boost service delivery and promote financial inclusion for all. As part of the initiative, Kenya is also developing a robust policy framework, which could be an amendment to the ICT Policy 2019 to ensure the proper utilisation and regulation of digital identities. This framework encompasses a set of principles and standards that govern the collection, storage, usage, and sharing of personal information, with the utmost emphasis on safeguarding individuals’ privacy and security. If the new Unique Personal Identifier (UPI) sounds familiar, you are not wrong because it is. The previous government attempted to launch digital IDs for Kenyans named Huduma Namba, also known as the National Integrated Identity Management System (NIIMS). However, the exercise was marred by court cases and overall distrust from Kenyans as the state failed to fully explain the merits of the IDs. This issue was also echoed by Kenya’s ICT and Digital Economy minister Eliud Owalo, who reiterated that Huduma Namba was never really explained to the people of Kenya in a past TV interview. “The Huduma Namba was a well-intended initiative, but the process of introducing it into the marketplace was wrong. Whenever you are introducing something new of that nature, you need to explain to Kenyans why it is imperative to introduce such an initiative. They need to understand what it entails, and you need to seek stakeholders’ views. And one of the important stakeholders is the Kenyan public,” said Eliud Owalo in an interview. Why it matters The UPI will be crucial throughout a child’s educational journey, serving as their primary and secondary school identification numbers. As the child grows and reaches the age of 18, the UPI seamlessly transitions into their official national identity number. Also, the UPI will have multi-faceted utility, serving as the child’s National Health Insurance Fund (NHIF) number, the National Social Security Fund (NSSF) number, driving license number, and ultimately, even their death certificate number. This robust integration will make the digital ID a central and unifying identifier for various essential aspects of a Kenyan’s life. It should also be remembered that the development means that Huduma Namba is no more. The project cost the previous government over KES 10 billion (over $72 million). It had issued the Huduma cards to Kenyans, but more than half of the registered Kenyans did not pick them up. Estonian ICT firms developed the technical parts of Huduma Namba. The European country, known for its robust ICT sector and popular apps such as Bolt, has since set an ICT base in Kenya, with the plan of working with local ICT firms. One of Estonia’s IT companies may also handle the new digital ID roll-out. Data protection The implementation of UPIs in digital ID systems carries risks such as privacy concerns, data breaches, and identity theft. In the case of identity theft, resolution mechanisms need to be established. Exclusion and discrimination based on personal characteristics may occur, and hacking and cyber attacks threaten sensitive data. Individuals without a UPI may be denied certain services since the government may make it a mandatory ID for all people, as it did with Huduma Namba.The Huduma Namba case highlights the complex issues surrounding digital IDs and privacy rights. While digital IDs have the potential to enhance government services and financial inclusion, concerns about privacy and security arise due to the collection and storage of personal information, an issue that could be addressed with the policy, as mentioned earlier, that is under development. Lastly, the court’s decision to require a Data Protection Impact Assessment shows the importance of addressing these concerns before implementing the system.
Read MoreHow Zambia is prepping to become Africa’s next major tech hub
A deep dive look at the state of Zambia’s tech ecosystem. Earlier this month, pan-African e-commerce startup Wasoko announced its entry into the Zambian market. Daniel Yu, founder and CEO of Wasoko, cited “high smartphone usage and a pro-business government administration keen on expanding the country’s digital economy” as the reason for setting up shop in the southern Africa nation. Wasoko is not the only tech company to recently set up shop in “Zed”, as the country is affectionately known by its 19 million inhabitants. Subscription video on-demand platform Wi-flix, technology infrastructure company Liquid Intelligent Technologies, crypto exchange VALR, and fintech unicorn Chipper Cash have all entered the Zambia market in the last year. So promising is the Zambia tech ecosystem that Vitalik Buterin, co-founder and inventor of Ethereum, the world’s second-largest cryptocurrency, has also expressed his support for its tech scene following a 2019 visit to the country and a virtual meeting with President Hichilema in 2022. Looking forward to seeing more blockchain and crypto projects make an impact in Zambia and in Africa more generally! Lots of work to be done in scalability, easy-to-use wallets and other important areas, but many unique opportunities as well. https://t.co/QL4bbWMbi2 — vitalik.eth (@VitalikButerin) March 29, 2022 So what are they doing differently in Zambia that is making a lot of technology companies want to do business there? Sandi Chimpala, a tech blogger and CEO of TechTrends, a Zambian tech publication, agrees with Yu that the presence of an enabling environment has been the driving factor to the growth of the country’s tech sector. “We’ve seen more of the government and other private sector stakeholders recognising the potential of technology in driving the country’s economic growth. Digitalisation initiatives, including e-governance on the part of the government, have really taken hold and although implementation is not always best, the effort is there,” Chimpala tells TechCabal on a call. Government’s role in creating an enabling environment for digital transformation When President Hakainde Hichilema delivered his maiden speech to the first session of the 13th National Assembly after assuming office in August 2021, he stated that his administration will mainstream digital revolution in national programmes in order to tap into the talents and creativity of Zambians. “Government is keen to support innovation and creativity especially, which offer home grown solutions across all sectors of the economy,” President Hakainde stated. Since then, the administration’s numerous digitalisation initiatives seem to be paying off dividends—setting up a Ministry of Technology and Science and implementation of policy measures to promote economic transformation especially in information and communication technology.. However, according to Zambia’s 2022 Inclusive Digital Economy Status report, produced in partnership with the UN Capital Development Fund (UNCDF), there is still much work to be done. The report indicates that the country has a digital divide of 47, meaning that 47% of Zambians are not digitally-included. While the gender digital divide stood at 34%, the rural digital divide—rural people without digital access—stood at 56%. To tackle this lack of inclusivity challenge head-on, much effort is being put into bringing underrepresented groups, including rural dwellers and children, into Zambia’s digital transformation journey. This is according to Jane Chinkisu, director of science and technology under the Ministry of Science and Technology. “There are currently active efforts currently ongoing to revamp our education system so that STEM skill sets are imparted to students at a young age. Additionally, we are also trying to improve ICT infrastructure in rural areas so that the people living there also have access to technology. All these efforts are to ensure that our people have technological prowess and that there is no skills gap which could promote a digital divide in the country,” said Chinkisu. Although the progress has been below the set targets, it has been there nonetheless. According to data by Digital Portal, Zambia’s internet penetration stood at 21%, a total of 4.3 million internet users. Internet users in the country increased by 115,000, a 3% increase between 2022 and 2023. Internet speeds in the country also increased quite significantly, with mobile internet connection speeds in Zambia rising by 25% and fixed internet connection speeds rising by 86%. Private sector playing its part Apart from the government’s efforts, there have also been intentional efforts from the country’s private sector players to support Zambia’s digitalisation agenda. In November last year, MTN launched the first 5G network in the country to accelerate internet speeds in the country. The mobile network operator also introduced “MTN Data Smart”, a program that is designed to help Zambians “learn more about what the internet has to offer and how best to use it to their advantage.” In April this year, Liquid Intelligent Technologies also entered into a memorandum of understanding (MoU) with the government of Zambia to provide connectivity to all Zambians through the launch of a new data centre “that will meet growing data-hosting demands from local businesses and hyperscalers.” The MOU also entailed the expansion of Liquid’s fibre network to connect more towns across the country, as well as the deployment of the physical infrastructure required to connect schools and clinics. Other private sector players in the countries, including Absa Bank, Stanbic Bank, Airtel, as well as Cellulant, to mention a few, have also played their part in providing support for initiatives that promote the digital transformation agenda in the country. According to Chinkisu, the role of the private sector in helping the government to achieve the country’s digital transformation mandate cannot be overstated enough and seeing its importance, a significant lot is being done by the government to uphold the current trend of the sector’s participation in digitalisation. “In terms of the private sector’s participation, we believe it is key in the country’s transformation and we are working on how to create incentives for them to continue their support. If the private sector continues to put up investments, we actually will be in a better place rather than the government struggling on its own,” she added. A startup
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This platform wants to help SA creatives easily monetise their content. Here is how it works
This week, South African hip-hop star turned entertainment content entrepreneur Siyabonga Metane, popularly known as Slikour, launched United States of Creatives, a platform to help creatives digitally monetise their works. United States of Creatives, housed under the “Slikour On Life” digital entertainment content platform, comprises two core products: SOL Distro and SOL Wallet, which was designed to be an easy way for artists and creators to benefit monetarily from their fans’ support. TechCabal caught up with the multi-faceted Slikour to learn more about United States of Creatives, its mandate, more details about its suite of products, and how tech can help creatives make profit from their work. TechCabal: Please tell us more about the United States of Creatives platform. Slikour: The idea behind that was to create a digital ecosystem for artists to avail their creations to their fans who are the final consumer. The problem with artists is that we just create, but there is no centralised social transactional area for consumers to actually go and purchase and interact with these creations. How it works is that artists are now able to consolidate all the revenue on one platform, whether it’s merchandising, products, events, etc. They are also able to consolidate the revenue from the platform to build a financial profile. TC: Can you walk us through the United States of Creatives suite of products? Slikour: We have two core products which are Slikour On Life Distribution (SOL Distro) and Slikour On Life Wallet (SOL Wallet). SOL Distro is a distribution platform that allows artists to distribute their music to various streaming platforms. In addition to that, we have also written a book with a lawyer that helps artists with managing their publishing. Also, there is also financial information around helping artists invest in alternative vehicles like stocks and bonds. For that, we have a fund and asset management company guiding us to do that. The end goal here is to eventually allow artists to turn their creations into an asset management business. SOL Distro (Image source: Slikour On Life) SOL Wallet, on the other hand, is a fintech platform which allows fans using Mastercard cards to do ecommerce and point of sale purchases on the platform. Users are also able to send mobile money to other people or merchants that are also using the platform, as well as move funds from their bank cards into their SOL Wallet or SOL Mastercard. Fans can also buy tickets on the SOL Wallet and if the event owner has added the whole journey of drinks and merchandise, they can also pre-order their drinks and merchandise before they arrive at the event and just pick up instead of waiting in a line. SOL Wallet (Image source: Slikour On Life) In the long term, SOL Wallet will have what we call a “Creators Loan”, which will allow creators to get instant loans to cover gigs they do with corporates which usually pay between 60 to 90 days. SOL Creators Loans (Image source: Slikour On Life) Apart from those two products, event owners and promoters will also be able to sell multiple things on the platform, including merchandise, beverages, etc. Additionally, when you use our SOL MasterCard which is a virtual debit card, you get charged zero rates. TC: How is revenue split structured between the creators who will be using the platform and the platform itself? Slikour: In terms of SOL distro, the splits are the industry standard, which is 80% to the artist and 20% to the platform, unless under special instances in which we are willing to negotiate with the creator. For every other product on the product suite, we are going to charge the creators based on each transaction which happens via our platform. TC: United States of Creatives launched this week. From the traction that you have garnered so far, are you optimistic about the future of the product? Slikour: Of course! We never did this so we can fail and we’re going to make sure we make it work. Our motivation is that we are creating a solution for creatives. What we want to achieve is helping these creatives get the most value out of their work. TC: What role do you think technology platforms like United States of Creatives will play in growing the music industry in South Africa? Slikour: I think tech will only be as good as the needs of the times. We are building a platform which resonates with the needs of the time. Tech will always be key, just like anything else that answers the needs of the masses. This is not an idea that was built off of being intelligent or being smart. It really was built off the need. So going forward, technologies which really address the needs of consumers at a particular time period will be widely adopted. In return, these technologies would then help creatives to really extract the most value out of their work which is a win-win situation for all ecosystem players involved. *Interview has been edited for clarity and length. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
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👨🏿🚀TechCabal Daily – The naira scare
Lire en français Read this email in French. 2 JUNE, 2023 IN PARTNERSHIP WITH TGIF Thank you for filling our bi-annual TC Daily survey. We are presently reviewing entries and will contact the lucky winner of the $50 gift card by next week. In today’s edition Nigeria denies currency devaluation Kenya launches second phase of Hustlers Fund Another data breach in SA TC Insights: Funding Tracker The World Wide Web3 Report: The impact of employee health on retention Job openings CBN DENIES NAIRA DEVALUATION Yesterday, the Central Bank of Nigeria (CBN) dismissed claims that it devalued the naira to ₦630 per $1 from the ₦461 it previously was. The CBN debunked the claim in a statement posted on Twitter, stating that “For the avoidance of doubt, the exchange rate at the Investors’ and Exporters’ (I&E) window, traded this morning (June 1, 2023) at ₦465/US$1 and has been stable around this rate for a while.” TechCabal also confirmed the official exchange rate of ₦464/$1 from Stanbic IBTC Bank, one of Nigeria’s top financial institutions. What led to these claims? Yesterday, Daily Trust exclusively reported that “the CBN devalued the Naira to ₦630/$1”. Based on a solitary transaction, the publication sourced its story from the rate obtained through the Importers and Exporters window, leading Daily Trust to believe that a devaluation had occurred. The origins of the devaluation reports can be traced back to Nigerian president Bola Ahmed Tinubu’s inauguration speech on May 29, in which he affirmed his administration’s commitment to addressing the existing foreign exchange (FX) policy. Notably, Nigeria operates multiple exchange windows, with the official rates (₦464) trading significantly lower than the parallel market rate (₦750). 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. PRESIDENT RUTO LAUNCHES SECOND PHASE OF HUSTLERS FUND Kenyan president William Ruto Yesterday, Kenyan president, William Ruto, launched the second phase of Hustlers Fund. As part of this phase of the Fund, the government plans to provide financial support to Chamas and SACCOs, aiming to address issues of exclusion and barriers hindering their access to credit and savings opportunities. What are Chama and SACCOs? A Chama is an informal cooperative society that is normally used to pool and invest savings by people in East Africa, particularly Kenya. A SACCO is an abbreviation for Savings and Credit Co-operative. SACCOs are user-owned financial institutions that offer both savings and credit services to their members. Per Ruto, in this phase of the Hustler programme, the loan amounts provided range from a minimum of Ksh50,000 ($365) and have the potential to reach as high as Ksh1 million ($7,302). “Your credit score will determine the amount you can access, and the amount you will continue to receive,” he said. ICYMI: In April, TechCabal reported that the first phase of Hustlers Fund managed to dish out Ksh26.4 billion ($198 million) to a staggering 18 million Kenyans in just five months. MORE FROM TECHCABAL Increased fuel prices raise questions about the future of work in Nigeria. Two years post-acquisition, Paystack is expanding products and gunning for roots in African markets. 500K RETAIL CUSTOMERS AFFECTED BY DATA BREACH IN SA South African retail giant JD Group has announced that it suffered a data breach that exposed the personal information of over half a million of its customers. Affected stores include Bradlows, Everyshop, HiFi Corp, Incredible (Connection), Rochester, Russells, and Sleepmasters. The extent of the damage: According to the retail chain, the leaked data include names, email addresses, home addresses, ID numbers, and in some cases, phone numbers of over 500,000 JD Group and 67,000 Everyshop customers. The data was made available for sale on a hacker forum for as low as $3.60 (R70). According to the company’s CEO Peter Griffiths, “immediate action” is being taken to investigate and mitigate the impact of the breach. Zoom out: According to INTERPOL’s 2022 Africa Cyberthreat Assessment report, South Africa leads the continent in the number of cybersecurity threats identified. In 2022, the country had 230 million threat detections in total. In second place was Morocco at 71 million. TC INSIGHTS: FUNDING TRACKER This week, Morrocan PrestaFreedom, a home services marketplace, raised $1.1 million in an undisclosed funding round from Azur International Fund. Here are the other deals this week: Zofi, an Uganda-based fintech company, raised $1 million in pre-seed funding from Advancly, a Nigerian-based investor Advancly. Moroccan health tech company DataPathology received $1 million in an undisclosed funding round from Azur Innovation Fund. Zydii, a Kenya-based digital training company, raised an undisclosed amount in a pre-seed funding round from DOB Equity, Kua Ventures, Kaleo Ventures, and NaiBAN. That’s it for this week! Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker. EXPERIENCE VIVA TECHNOLOGY Book your pass to Europe’s biggest Startup and Business event here. This is partner content. THE WORLD WIDE WEB3 Bitcoin $26,890 – 0.77% Ether $1,868 + 0.23% BNB $305 – 0.07% Cardano $0.36 – 2.50% Name of the coin Price of the coin 24-hour percentage change Source: CoinMarketCap * Data as of 23:10 PM WAT, June 1, 2023. REPORT: THE IMPACT OF EMPLOYEE HEALTH ON RETENTION In a rapidly changing job market, the key to retaining top talent lies in prioritising employee welfare. But how does health insurance impact job retention, especially in volatile macroeconomic conditions? Our comprehensive report, in partnership with WellaHealth and Whirlspot Media, delves into the fascinating connection between health packages and job retention. It explores how health maintenance organisations (HMOs) influence the decisions of employees across 12 industries to stay or leave their jobs. Don’t miss out on the actionable insights from this study. Learn the best practices to foster a healthier, happier, and more loyal workforce by getting the report now. Download the report here. JOB OPENINGS Paystack – Data Engineering Lead – Nigeria (Not specified) Tony Blair Institute for Global Change
Read MoreIncreased fuel prices raise questions about the future of work in Nigeria
The removal of fuel subsidy in Nigeria has led to a significant increase in commuting costs for workers. Both employers and employees share their challenges and express the need for cost-saving measures in the workplace. Employers and workers in Nigeria are floating ideas for how to adapt to the ballooning fuel prices. In addition to record high inflation—22%—Nigerians now have to bear the weight of the full price of fuel which the government has partly shouldered for years through fuel subsidies. Now, the cost of fuel has nearly doubled, eliciting a commensurate increase in the cost of transportation and fuel-powered generators—common backups for the country’s unsteady power supply. People who work remotely, at the office or a combination of both are looking for ways to work around the situation and spend less money. James*, a salesperson at Access Bank in Port Harcourt, shared that the cost of his daily transportation using ride-hailing services has nearly doubled. “[Yesterday] I had to combine both public transport and [ride-hailing platform] Bolt as the price of the latter has increased. It will now cost me about ₦5,000 daily to go to and return from work daily,” James told TechCabal. He expressed a desire to work from home, but the nature of his job won’t allow that. “Most of my work requires access to bank applications that are limited to the bank’s wired network. Unless there are significant changes to the network infrastructure,I will have to continue hitting the road to work daily, even though it means increased expenses,” he added. Danjuma*, who works at a multinational fintech company, explained that his commute costs have also doubled. His company follows a global hybrid work policy, that requires him to be in the office three times a week. With the recent developments, he estimates spending ₦36,000 ($78) on transportation each week. For employees fortunate enough to have the option of full-time remote work, Nigeria’s erratic power supply poses a challenge. Only 57% of the population has access to the electricity grid. Mobalaji, a data analyst in Ogun State, shares that his work remains unaffected due to the reliable power supply in his area. But power outages remain common in most parts of the country, leading to a reliance on fuel-powered generators as an alternative power source. Unfortunately, the removal of fuel subsidies has increased the cost of operating generators. Lynda, who recently got a job at a tech startup that promotes remote work, initially planned to work from home. However, due to the changing circumstances, she now considers going to the office to reduce the expenses associated with using a generator. Her temporary solution is to work at the office until she can save enough money to buy an inverter or battery system for an uninterrupted power supply. Joseph, a writer at a tech-focused publication feels the same way. Even though he can work from home, he goes to the office instead. “Considering the unstable electricity supply in my area, it didn’t seem productive to stay at home today. Therefore, I have decided to work from the office until I can resolve how to go about the fuel situation,” he said. Others have found alternative power solutions to combat the increase in fuel prices. Tope Nkechi Akintola, a brand designer in Lagos, uses an inverter to power her workspace, providing uninterrupted electricity for her laptop and essential devices. Employers and human resource managers have varying opinions on how both employers and employees should adapt to the circumstances. Emmanuel Faith, head of talent management at Big Cabal Media, believes that employers should explore remote work policies to reduce employees’ financial and commuting burdens. He told TechCabal, “The effects of macro-economic changes like this vary from the hike in transport prices to hike in the cost of every other necessity. He strongly advocated for workplaces to implement remote work policies, and in cases where exceptions cannot be made or remote work is not feasible, he recommended exploring flexitime. Seye Bandele, the founder of an HR tech startup, Pade HCM, acknowledges the complexity of adjusting work structures to accommodate the diverse needs of different teams. As an employer, he is still evaluating how to adapt to the situation. He notes the challenge of finding a balance that is fair to all employees.”The administrative staff, who may be required to [bear the increased expenses of commuting and] be present in the office, are not necessarily the highest-paid members of the team. The sales team doesn’t need to come to the office at all but it feels unfair to ask the admin guys to come in and them [the sales team] not to,” he explained. Jude Dike, co-founder of VC crowdfunding platform, GetEquity, says that his team is currently fully remote and that the company is exploring means to reduce the burden of the increased cost of power supply. “At GetEquity, we already offer data packages, and are considering affordable alternate power supply options like Solyanta Energy [a subscription-based solar energy provider] to meet the power supply needs of employees,” he told TechCabal. He advises companies that can’t afford to have remote workers due to the dynamics of their team to consider transporting employees with bus-hailing services such as Shuttlers. Gbemisola Araba, the people operations manager at women-focused fintech Herconomy, emphasizes the importance of meticulous planning for organizations to keep their employees satisfied and maintain profitability. She suggests that if feasible, employers should consider reviewing employee salaries or offering additional perks such as providing lunch to boost morale. Gbemi mentions that her company’s team is currently working remotely, and she advises other employers to allow their employees to work from home if possible. She highlights that employees are now spending three times the usual amount on commuting to work, and companies need to find alternative sources of profit to cope with the financial strain caused by increased operational costs. In response to suggestions that employers should raise salaries, Jude expressed the following viewpoint: “If it is feasible for companies, they
Read MoreTwo years post-acquisition, what’s happening at Paystack?
TechCabal spoke with Paystack’s chief operating officer about the company’s post-acquisition trajectory and relationship with acquirer Stripe. Paystack, one of the Y Combinator’s first bets in Africa, remains one of the continent’s most prominent startups. In 2020, global payments company Stripe acquired Paystack for over $200 million, marking one of the most successful exits in the African tech ecosystem. Since then, Paystack has continued to operate under its brand name, expanding into other markets and setting up other African fintechs for success. In this interview with Amandine Lobelle, Paystack’s COO, she talks about the company’s structure, its relationship with Stripe, and some industry-collaborative attempts at stopping fraud. This interview has been edited for length and clarity* Caleb: Paystack’s acquisition by Stripe has become a standout success story on the continent. Can you share the changes that followed the acquisition and how Stripe has contributed to Paystack’s overall strategy? A.L: Paystack continues to operate independently, but now as part of the larger Stripe group. In many ways, Paystack has become Stripe’s gateway into Africa, given their absence on the continent. Post-acquisition, our collaboration with Stripe has taken three main forms. First, Stripe refers their merchants seeking access to African customers to Paystack. Second, we gain invaluable insights from Stripe, a company that has revolutionised global payments, enabling us to build a scalable business. Lastly, there has been a talent exchange, with some former Stripe employees joining Paystack, which I think is a really beautiful and poetic thing to have come out of the acquisition. Caleb: Paystack has expanded into Ghana, South Africa, and Kenya while solidifying its presence in Nigeria. How does the company approach expansion? Will we see more countries added or deeper penetration of core markets? A.L: Paystack’s remarkable success in online payments, particularly card payments in Nigeria, has prompted us to replicate that success in other markets. Our expansion strategy is based on thorough research, considering factors such as GDP, card penetration, population size, and the strength of the startup and developer ecosystem. We focus on penetrating markets that serve as regional hubs and are strategically positioned to facilitate sub-regional growth. Additionally, we are currently in early beta stages in Francophone Africa and have plans to expand into North Africa. Caleb: Paystack claims to process over 50% of all online transactions in Nigeria. What are the key factors behind the company’s success in the Nigerian market? A.L: The first factor is having highly technical and product-focused co-founders. Shola and Ezra, being software engineers, possessed the know-how to build exceptional products that people are willing to pay for. Second, we maintain unwavering standards. Handling payments requires utmost diligence, considering that merchants entrust us with their livelihoods. We are committed to doing the right thing at all times and maintaining exceptional quality. Lastly, it’s the people. We prioritise hiring exceptional talent and creating an environment where they can do their best work. Shola often says that the payments problem is a talent problem. So, if you get the right people in the room, there’s nothing that we can’t fix, solve, or create. Caleb: You’ve said that Stripe and Paystack are run independently. But I’m curious about whether Stripe’s broader market realities—growth, expansion, or as reported recently, valuation cuts—-affect Paystack’s operations or business. A.L: While we admire and draw inspiration from Stripe’s breakthroughs, the challenges we face as businesses are distinct. We operate in different contexts, and our struggles on the ground in Africa differ from those in the US tech community. However, we do share some similarities in our challenges. Although a valuation cut on Stripe’s end may indirectly impact employees with shares, it does not directly affect Paystack’s operations. Caleb: Paystack has achieved remarkable success and has been a trailblazer in the African tech ecosystem. How does the company recognise its position and give back to the tech community? A.L: We consider it an honour and a privilege to have played a significant role in Africa’s tech journey over the past seven years. As a crucial part of the ecosystem, we continuously ask ourselves how we can support and foster further growth in African tech. One example is Paystack Catalyst, where we provide support to other startups to help them create value and grow. We offer free processing up to $25,000 on Paystack and $20,000 on Stripe, in addition to providing access to free or discounted tools such as AWS. Caleb: Looking ahead, can we expect Paystack to expand into other fintech verticals to better support merchants? A.L: Our mission is to help African merchants accelerate their growth, and this involves exploring various dimensions. We see an opportunity in providing an omnichannel experience, catering to merchants who sell both online and in person. We aim to replicate the online experience for in-person payments. There’s also the possibility of providing financing for merchants, but I don’t think it’s worth going into the details now. Caleb: Paystack’s employees are said to be one of the happiest in the ecosystem. How does Paystack maintain its efficient staff base despite its scale? A.L: The magic lies in finding the best people for the job and empowering them to do their best work. At Paystack, we adhere to six core values: transparency, clear communication, kindness, high standards, pursuing growth and learning, and embracing the mission. Embracing the mission is particularly crucial, as we believe that what we are building is bigger than any individual. Shola is one of the most humble but driven people I’ve ever met and interacted with, and I think a lot of Paystack’s early culture came from him. But it’s also important to note that culture is not just one person. So whether at company gatherings or at weekly all hands, we reinforce and also reevaluate the culture because culture is not a static thing. Caleb: Fraud attempts are a challenge for many African fintech startups. How does Paystack combat this internally, and can you tell us more about Project Radar, the collaborative move between Paystack, Flutterwave, and others
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