New way for PSIRA check with ID 2023
Private Security Industry Regulatory Authority (PSIRA) registration plays a crucial role in ensuring the safety and professionalism of private security services in South Africa. Individuals and businesses engaging in security-related activities are required to be registered with PSIRA. Verifying the registration status of a security service provider is essential to ensure their legitimacy and compliance with the law. One way to do this PSIRA check is with the issued ID number. The PSIRA registration system was established under the Private Security Industry Regulation Act of 2001. This framework aims to regulate and monitor the private security industry to prevent illegal or unethical practices and to uphold public trust. Individuals and companies offering security services, such as security officers, private investigators, and security training providers, must undergo registration with PSIRA. This process involves meeting specific requirements and demonstrating a commitment to professional standards. To check the PSIRA registration of a security service provider with their ID , follow these steps: 1. Gather Information Obtain the ID number of the individual or business you wish to verify or check their PSIRA. This is a unique identifier that is linked to their PSIRA registration. 2. Visit the PSIRA website Access the official website of the Private Security Industry Regulatory Authority (www.psira.co.za). 3. Navigate to verification section Look for the section on the website that provides verification services. This could be labeled as “PSIRA Verification” or “Check Registration Status”. 4. Enter ID number Input the ID number of the security service provider into the designated field on the verification page. 5. Initiate PSIRA verification/check after inputting ID Click the “Verify” or “Search” button to initiate the verification process. 6. Review results after PSIRA check with ID The system will provide you with the registration status of the security service provider associated with the entered ID number. The results will indicate whether the individual or business is registered with PSIRA and whether their registration is up to date. It’s important to note that the verification process is only as accurate as the information entered. If the ID number is incorrect or misspelled, the results may not reflect the accurate registration status. Therefore, it’s essential to double-check the ID number before initiating the verification. Final thoughts on how to carry out PSIRA check with ID Verifying PSIRA registration using an ID number is a quick and convenient way to ensure that the security service provider you are dealing with is compliant with the regulations set forth by the regulatory authority. This process helps individuals, businesses, and clients make informed decisions when engaging security services, promoting transparency and professionalism within the private security industry. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Cook or code? Gender norms continue to nurture the gender gap in tech
The gender gap in tech careers continues due to inhibitive gender norms and the gender gap in tech education. “My superior at work is a woman. The two best backend engineers on our team are female. So when people talk about gender inequality in the tech ecosystem, I do not see it,” Philip Awotepu, a product manager, said to me at a party. The party was to celebrate the graduation of 18 youngsters who had spent 12 months learning at Semicolon, an ed-tech startup that offers cohort-based training in tech skills like engineering and product management. This party was for its 11th cohort, with 30 graduates, of whom only eight were women. In the previous cohort, 36 graduated; again, only eight were women. The product manager’s assertions in the face of real-life contradiction mirror a stubborn belief that gender inequality in tech careers is a natural outcome based on divergent interests between the sexes or it is being blown out of proportion. This belief makes people frown at and sometimes protest initiatives or policies that exclusively support or prioritise women. For instance, in 2021, Kuda Bank was accused of discriminating against men when it advertised internship positions exclusively for women. After receiving many negative reactions to the tweet about the internships, the fintech explained that it was trying to close the gender gap in its team. Eleven people, but only two are female. Image source: Dall-E Similarly, Semicolon—which trains both women and men—has a separate mentorship programme exclusively for its female trainees: SWiT (Semicolon Women in Tech). Interestingly, Awotepu was volunteering as a mentor on SWiT. He shared that he initially had no idea it was exclusively for female students. However, he mentored one of the few ladies graduating that day who had learned product management and landed a paid internship at the popular fintech company Moniepoint. “During one of our mentorship sessions, she shared concerns about being the only woman on her team. I told her that no one cared about her gender and all she had to do was do great work, and she would be okay,” he recounted. She probably agreed with him on the call, but her experience before entering Semicolon begs to differ. “When I told my parents that I wanted to move to Lagos to train at Semicolon, my father asked me whether I didn’t want to get married,” the mentee said to me in a later discussion. If she hadn’t been committed and ready to leave all that was dear to her—her family and friends—in Kano state and move into a shared apartment in Lagos with the few other ladies who were attending Semicolon as well, she might not have taken up product management, a skill that pays within ₦100,000–₦300,000 in Nigeria. “I knew I wanted to change my life for the better,” she said. Her experience, echoed by many other women across Africa, answers a weighty question: “What barriers do women face in acquiring tech skills that men don’t?” The first and perhaps most important answer is that many religious and cultural beliefs suggest that a woman’s most useful role is homemaking and nurturing children. Nafisa Idris, a data scientist who also mentors women who are interested in a tech career, told TechCabal, “[After my father died,] our uncle tried to get me married at age 11, but my mother refused because she had promised my dad that she would make sure I was educated as much as possible.” Even when women are just as educated as men, their productivity is hampered due to the gender roles expected of them, especially by their immediate family. A 2023 research paper tried to probe why educated African women in science and technology published fewer papers than their male counterparts, and it discovered that it was because a greater proportion (≥50%) of care work, family commitments, and housework in the home are overwhelmingly performed by women. Women would make more academic contributions if they were not so constrained by these responsibilities. Image source: Dall-E Nearly 74% of respondents to a survey created by TechCabal commented that the cleaning, cooking, and caretaking chores leave them exhausted and with little to no time to learn tech skills, even when their families know they are enrolled in such programmes. “I’ve had to take classes with my laptop in the kitchen [while cooking], and most times because [I am worried about gas explosions, I have to skip classes,” said a respondent who was taking online tech skill training at a popular ed-tech. Rachael Onoja, head of operations at AltSchool—an ed-tech like Semicolon—told TechCabal that there have been several instances of female students missing classes because they were helping their siblings get to school or handling some other family matter. “Several female students have dropped out to care for a sick family member.” Men have dropped out of school, too, but it has mostly been due to financial shortcomings, not caretaking responsibilities. Rachael believes that these gender norms or cultural expectations of women are contributing to the gender gap in the tech ecosystem. Addressing the impact of gender norms on women’s tech skill development at the 2022 SheCode Africa conference, Semicolon’s co-founder, Ashley Immanuel, said that, out of approximately 10,000 applicants to Semicolon, many women excelled and received admission offers. However, many had to reject these opportunities due to parents’ or guardians’ beliefs that it was not a worthwhile use of resources or the woman’s time. “Those who come despite not receiving that permission may do so under the condition that their families do not provide financial support,” she explained. Image source: Dall-E Due to this pattern of women lacking access to funding, notable figures, tech professionals, and some organisations set up scholarships to exclusively fund the registration fee or full tuition fee for women interested in participating in tech training. AltSchool, which currently has a school of engineering and products, told TechCabal that such female-focused scholarships have sponsored many of its female students. “We often hear comments asking
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Despite price fluctuations, Africa’s Bitcoin maximalists remain bullish on its future
Bitcoin, as well as other crypto, has had a wild run in the past year. In the face of this, however, the African Bitcoin community has remained unfazed. Anita Porsch is a digital nomad who has spent the past two years travelling Africa as a Bitcoin educator and teaches Bitcoin at grassroots levels. For Porsch, who started a learning platform titled Crack The Orange, Bitcoin has one goal; facilitating a more just financial system. She believes in the potential of Bitcoin as an equaliser, giving people across the world access to the same monetary system and is committing a lot of time and effort to that gospel. On Thursday, August 18, 2023, Bitcoin hit a new low as it fell over 8% to rest at $26,172, its biggest one-day drop since FTX collapsed in November 2022. Hundreds of thousands of traders liquidated about $500 million worth of the digital currency in 24 hours amid rumours that Space X had sold off all the Bitcoin they were holding. The past year has been a wild ride for Bitcoin and other cryptocurrencies. The collapse of FTX triggered a lot of speculation around the legitimacy and fate of crypto, with investors liquidating their remaining assets and startups folding in the face of loss and limited capital. All of these sent the prices of digital assets plummeting, as the price of Bitcoin fell 22% percent in a day. The asset has since regained its losses since then. In 2022, I spoke to a number of Bitcoin maximalists working on Bitcoin-related projects across the continent. There were a lot of elaborate plans on what Bitcoin could do for Africa, including plans for a Bitcoin village in Lagos, and Machankura, a custodial wallet that allows people to send and receive Bitcoin via USSD codes. One year and multiple scandals later, Bitcoiners still believe that real Bitcoin has largely been unaffected. According to Porsch, who is currently in Zambia, people who really understand Bitcoin aren’t bothered by the price fluctuation and donations to her non-profit haven’t really been affected. “Bitcoin is not a game for you to win quick, free money, and that is the mentality we are working to combat. Sometimes people are short-sighted, and understandably so, because they need money and they need it fast, which is what causes a lot of the problems we keep hearing about. The goal of many people using Bitcoin is to save for the long term, and going by that, Bitcoin is the best currency to do that with. You might say the dollar or pound are better but even those currencies are currently being racked by inflation.” “We ensure that we tell people in our communities to only invest money for the long-term and not the one they need immediately. Don’t risk all your money just because you’re looking for quick returns. Bitcoin has a lot of functionality, but it is not a get-rich-quick scheme,” she shared. Anita Porsch at a Bitcoin workshop Porsch’s Bitcoin platform, Crack The Orange, teaches people about the complexities of Bitcoin and its uses. For her, it is crucial at this stage where there are a lot of wrong assumptions about the currency and a lot of ignorance surrounding its potential. “I’ve worked on Bitcoin education and have reached hundreds of people. However, the point of this is to build something that’s long-lasting and sustainable because there’s only so much that I can do. I’m doing this so that people from these communities can learn themselves even when I’m not there, and even teach others. There are a lot of opportunities for people who understand Bitcoin out there and my goal is to get people enlightened and possibly plugged into these opportunities.” All across Africa, there are people like Porsch, who still believe in the power of Bitcoin, regardless of the scandals and fluctuations in price. Abubakar Nur Khalil, CEO of Bitcoin VC firm, Recursive Capital is one of such people. According to Khalil, a big mistake that the Bitcoin community made was allowing themselves to be lumped into a broader crypto industry. “This kind of framing harms people, as they are often unfamiliar with the technicalities behind how projects, including Bitcoin, work and their differences, which encourages misinformation. This misinformation puts unsuspecting people on a path of becoming bankrupt, ultimately disillusioned with the space, uninterested in any legitimate benefits of Bitcoin, and only poisons the well,” he wrote. According to them, their operations as a Bitcoin organisation have continued per usual despite everything that has happened. In his article, Khalil shared that there has even been a significant increase in the quality of projects that come through their pipeline. “Previously, the messaging of ‘crypto VC’ only filled our inbox with projects that were either outright scams, well-dressed yet-to-be-uncovered scams, or impractical ideas.” For years now, Bitcoin maximalists have insisted on a large difference between Bitcoin and other cryptocurrencies, asserting that Bitcoin is the only digital currency worth paying attention to. In this article from the Bitcoin Magazine, Jimmy Song writes that “Bitcoin is the original and very different from ‘crypto’ projects, which are all basically cheap knockoffs. Bitcoin has no central controller, there aren’t misaligned incentives, the people involved have no special rights and there’s no marketing team.” According to Bitcoiners, it is this difference that will make Bitcoin stand the test of time and continue to operate even while the price is shaky. For Heritage Falodun, the founder of the Bitcoin advocacy community, DigiOats, they’ve been working extra hard to shift the interest in Bitcoin beyond being an investment with the possibility of high returns to its other functionalities like facilitating financial innovation. According to Falodun, the bubble of crypto has burst and a lot more people are open-eyed and more critical of Bitcoin. “We have to teach people how to protect themselves from centralised exchanges in terms of creating private keys to store their Bitcoin. These days, it is not enough to just tell people revolutionary objectives or theories
Read MoreEgyptian payments provider Fawry is considering digital banking
Egyptian payments provider Fawry plans to launch a digital bank this year. This comes weeks after the company announced its plan to obtain a digital bank license from the Central Bank of Egypt. Per local media reports, Egyptian payments provider Fawry, will be turning its online payment portal—myFawry—into a digital bank to provide financial services including payments, consumer lending, savings, and investments, by the end of 2023. However, the company’s head of investor relations, Hassan Abdelgelil clarified that the decision to launch a digital bank is yet to be finalised. “The management hasn’t taken the decision as well as the board. We are thinking of it. We will conclude by the end of the year or early next year. Contrary to the reports, we plan to convert myFawry into a neo-bank to include financial services,” he told TechCabal over a call. Last month, the Central Bank of Egypt (CBE) issued rules for licensing, registering, monitoring, and supervising digital banks. Like Fawry, several companies such as eFinance and Opay have shown interest in applying for a digital banking license. The Egyptian fintech industry is projected to witness significant growth in the coming years, with its market volume hitting $10 billion by 2027. The number of fintechs in the North African country grew five-fold from 32 in 2017 to 177 in 2022. Fawry—Egypt’s largest e-payment platform—is betting that a digital bank will further expand its serving offerings and diversify its revenue streams by tapping into different segments of the Egyptian market. Earlier in August, the company’s subsidiary, Fawry Microfinance got preliminary approvals from the Financial Regulatory Authority for the addition of SME financing to its portfolio, according to WeeTracker. To tap into Egypt’s growing remittances market, Fawry has partnered with UAE-based voice-calling app Botim to allow Egyptian workers residing in the UAE to pay bills and send home remittances. TechCabal recently reported that Flutterwave, the Nigerian fintech unicorn, is also hoping to capture a share of the Egyptian remittances market. According to its H1 2023 financial report, Fawry reported a total revenue of EGP 1.4 billion ($45.3 million) in the first half of the year, representing a 42.4% increase from the previous year. Its adjusted net profit also rose 290.4% year-on-year to EGP 327.9 million ($10.6 million) with a net profit margin of 22.7%. The company also recorded 67.6 million transactions on its mobile wallet and EGP 80.5 million ($2.6 million) in transaction value, a rise of 73.9% and 107.7% year-on-year, respectively. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Latest SA Standard Bank branch code 2023
Standard Bank, one of South Africa’s leading financial institutions, operates an extensive network of branches across the country. These branches are identified by unique codes known as branch codes. These codes play a crucial role in facilitating various financial transactions, including electronic fund transfers, salary payments, and bill payments. As of 2023, the branch code for most banks’ branches in South Africa are consolidated. So the central branch code for Standard Bank is 051001. More on Standard Bank branch code It’s important to note that these branch codes are essential for accurately directing funds during transactions. Whether you’re making a payment, transferring money, or setting up direct deposits, using the correct branch code ensures that your funds reach the intended destination without any delays or errors. As banking technology evolves, these branch codes continue to be relevant, allowing for efficient and secure financial interactions. However, keep in mind that branch codes can change over time due to mergers, relocations, or other operational reasons. Therefore, it’s always good practice to verify the branch code with the bank or through official communication channels before initiating any transactions. Universal branch codes vs individual branch codes Branch Code refers to a unique numerical identifier linked to a specific branch of a bank, denoting its geographical location. On the other hand, the Generic or Universal Branch Code, like that of FBN, is a user-friendly code that applies universally to all branches of a bank. This single code can be utilised for transactions across any branch, regardless of where the bank account is held or established. Major banks and financial institutions are widely adopting this user-friendly approach of employing a universal code. It serves as a highly convenient method for managing bank details, especially in the context of internet banking. This option offers a streamlined experience, allowing users to choose between the universal branch code or individual codes assigned to each branch location. For those frequently searching for their branch codes, it’s worth noting that adopting the single universal branch code for payments and online collections at beneficiary banks can simplify the process.
Read MoreAs FX liquidity challenges continue, Nigeria is hoping dollar bonds will save the day
With FX liquidity challenges mounting, the Nigerian Exchange Ltd. is proposing dollar bonds for companies operating in the country’s free trade zones and those earning foreign currency. Nigeria’s FX reform has excited the markets, but it has hurt some of its biggest firms struggling to access dollars to import raw materials. The depreciation of the naira also affected their revenues. Guinness Nigeria Plc declared a loss of N18.2 billion in 2023 compared to N15.7 billion profit in the previous year. Nigeria hopes that a dollar-denominated bond listing proposal will ease its FX troubles. On Tuesday, Bloomberg reported that the Nigerian Exchange Ltd. (NGX) wants companies operating from the country’s free trade zones and those earning foreign currency to issue bonds and offer equity denominated in dollars. Like bank loans, bonds are debt with interest rates issued over a period. Companies raise capital by issuing bonds, basically borrowing money from bond investors. For dollar bonds, the catch is attracting more investors since there will be less currency risk for U.S.-based creditors. Rather than source for dollars in the market, these companies can issue dollar-denominated bonds and get dollars to run their operations. The NGX believes this move could improve FX liquidity. However, experts are skeptical about the proposal and its impact on the FX market. A research analyst, Basil Abia explained that the intervention will only address the dollar shortage in the short term but can’t solve the FX problems. “So instead of waiting in line for CBN to meet their dollar needs, these companies can just issue dollar debt listings on the NGX to sort out their operations for a given period, and investors can buy these bonds,” he told TechCabal. He added that there might be shortfalls in the capital market’s expected liquidity. Nigeria’s FX market is already grappling with a lack of liquidity. There is a backlog of FX demand estimated at around $10 billion. “Dollar bonds could partially dollarise the economy and make a point for most firms to start charging and transacting in FX, which would further drive the demand upward,” Samuel Oyekanmi, a financial analyst told TechCabal. The consensus is that Nigeria’s FX crisis is structural: the country doesn’t generate enough FX. According to Abia, fixing the problem requires medium and long-term solutions such as increased production levels, more exportation, ease of doing business, and ease of engaging in trade swaps. The CBN’s attempt to unify the FX rates has failed to materialise due to the bank’s inability to meet demand, creating sharp differences in price on the parallel market from the official I&E window. Despite collapsing the FX windows, CBN maintains a list of 43 illegible items for FX. Experts have said the restriction negates the idea of the unification of the exchange rates and creates a demand for the parallel market. In the June 2023 edition of the Nigeria Development Update (NDU) [pdf], the World Bank advised the removal of the restrictions. It remains to be seen if the CBN will rethink the policy.
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Latest FNB universal branch code 2023
The FNB universal branch code, often referred to as a “branch code,” is a unique numerical identifier assigned to each bank branch within the FNB network. This standardised code enables individuals and businesses to conduct various transactions, including fund transfers, payments, and deposits, without needing to specify the exact branch location. The latest verified FNB universal branch code is 250 655 in South Africa. Meanwhile, the SWIFT code to easily identify a particular bank when carrying out an international transaction on FNB is FIRNZAJJ. More on the First National Bank Universal branch code 2023 One of the primary advantages of the FNB universal branch code is its convenience. Previously, when conducting interbank transactions or payments, individuals had to provide detailed information about the recipient’s bank and branch. With the universal branch code, this complexity is significantly reduced. Users can simply input the code, followed by their specific account number, and the transaction is seamlessly directed to the intended recipient’s account. The First National Bank universal branch code also promotes efficiency and accuracy. By eliminating the need for detailed branch information, the potential for errors in entering lengthy codes or branch names is minimized. This streamlining of the process benefits both customers and FNB, enhancing customer satisfaction and reducing administrative burdens. Furthermore, the First National Bank universal branch code aligns with the bank’s commitment to digital transformation. As more individuals embrace online and mobile banking, the ability to swiftly execute transactions becomes paramount. The universal branch code serves as an enabler for these digital platforms, ensuring that customers can carry out transactions without the constraints of physical location. For individuals engaged in e-commerce or remote work, the First National Bank universal branch code holds particular significance. Whether receiving payments or settling invoices, the simplicity of the code expedites the movement of funds, contributing to smoother business operations and financial interactions. It’s worth noting that the First National Bank universal branch code is not only a domestic solution but also extends its utility to international transactions. This feature underscores FNB’s commitment to fostering global connectivity for its customers. Final thoughts on First National Bank branch code As the banking industry continues to evolve, innovations like the universal branch code position banks like Capitec, First National Bank and the likes at the forefront of change, enhancing the convenience, efficiency, and accessibility of financial services for all.
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As Africa’s struggling currencies hinder growth, should startups fundraise in local currencies?
For African startups that raised funds in foreign currencies, rising inflation and currency devaluation have affected how they report revenue to investors. Can raising funds in local currencies help reduce the effect? A reversal of fortune—that’s one way to describe the state of VC funding in the African startup ecosystem in 2023. After seven years of exponential growth, 2023 is the year of the bear, and African startups have raised only $1.6 billion year-to-date. As VC firms, once eager to write cheques, are pumping the brakes, African startups also have to deal with inflation and currency devaluation. Last week, Jumia blamed a 15% revenue decline on currency devaluation in nine of its ten African markets. The past decade has seen African startups attract unprecedented funding from foreign investors. Per Partech, VC funding on the continent grew exponentially from $277 million in 2015 to $6.5 billion in 2022, representing 2,246% growth in seven years. Like Jumia, many other African startups report their revenues in dollar terms, and as currency devaluations happen, it produces a paradox where revenues dwindle even as their businesses are growing. In Nigeria, for instance, a company with N100 million in revenues would have reported $216,450 in January 2023. Today’s exchange rate will mean it will now report $110,987 for the same Naira revenue. “We have five portfolio companies in Nigeria, so we understand how inflation can reduce our overall returns because of the conversion rates,” Efayomi Carr, the principal at Flourish Ventures, told TechCabal. Image Source: Faith Omoniyi/TechCabal The Egyptian pound has lost 50% of its value against the dollar since February 2022. In Nigeria, the Naira has lost 67% of its value against the dollar since June. To work around this peculiar FX and revenue problem, some investors believe startups should be raising funds in local currencies rather than dollars. Startups that raise funding in local currency would have an easier time returning investments to their investors. “A key part of all entrepreneurial ecosystems is actually building significant domestic investment for startups,” Bolaji Balogun, the CEO of Chapel Hill Denham, a Lagos-based investment bank, told TechCabal. He added that startups that earn in local currency but raise foreign capital are often evaluated by foreign investors in dollar terms, which is not always reflective of their actual progress because of currency devaluation. Startups seek out dollar-backed investments for two main reasons: because they incur some costs in dollars and a shortage of available local capital for later-stage rounds. But there’s an extra incentive for raising in dollars: it exposes startups to a global pool of investors for follow-on funding and exit opportunities. “In Ethiopia, businesses have to raise local capital because they have strict currency controls. As a result, Ethiopia has a small venture capital industry because it can’t attract external capital. There’s not enough local capital to grow that ecosystem,” Carr added. Raising funds in local currency for African startups is difficult because local VCs also get capital in dollars. According to Abaz Ibekwe, a venture builder, “The local VC industry in Africa is still in its infancy, and there is a need for more key players to pump money into startup investment on the continent by funding VCs.” Adedeji Olowe, the founder of Lendsqr, a Nigerian fintech, told TechCabal that most local investors who could invest in startups with local currencies are either affected by the economic downturn or are not “sophisticated” enough to invest in startups. Balogun, however, thinks it’s a waiting game and told TechCabal that startups should find opportunities to engage with local investors to educate them on their businesses. “There is a fair amount of serious domestic investors in startups from pre-seed all the way out to Series A. From Series A and beyond, where businesses have some degree of maturity, I wouldn’t say there’s a lot of domestic capital available, but it will come. We have pension assets worth ₦16.7 trillion (over $20 billion) which can reach ₦100 trillion in 7-10 years, and some of that money will end up in more mature startups that are bottom-line profitable,” he said. However, some founders think that the currency startups raise in does not matter if African economies are still struggling. “If they [investors] give you money in dollars and your economy is doing well, you are going to be fine,” Olowe told TechCabal. He added that raising capital in foreign currencies might be more advantageous for startups to do global benchmarking, which increases their exit potential. Another reason investment in local currencies has been touted is that it reduces the ecosystem’s overreliance on capital from foreign sources. Briter Bridges said more than 74% of investors in the top 20 funding deals on the continent in 2021 came from foreign sources. Moustapha Ndoye, the CEO of Chargel, a Senegalese logistics startup, told TechCabal that startups should raise money locally, even if it’s not in African currencies, and he finds it “heartbreaking” that startups have to go to foreign investors for early-stage rounds. “It’s on startup founders to build profitable businesses with exits. This will make more people want to invest in startups,” he added. Oswald Osaretin Guobadia, a senior special assistant on digital transformation under the Buhari administration, told TechCabal that a combination of investor education from startups and creating incentives for local investors could improve the local VC scene. “In the Nigeria Startup Act, we provided incentives for investors to keep their money locally, for angel investors, and for a credit scheme if founders want to raise credit,” he said. Guobadia added that he believes there are no disadvantages to startups raising funds in local currencies. With the implementation of the Startup Act and a guarantee that startups could return dividends and enforce corporate governance, local investment could rise in Nigeria, he said. By raising capital in local currencies, startups can be better protected against external shocks and plan for the long term without constant shocks. In a dry funding environment where startups struggle to raise capital, turning to local
Read MoreAs BRICS bloc announces de-dollarisation plans, how will it impact SA startups?
With de-dollarisation a hot topic at the ongoing 15th BRICS Summit, how will the process, if effected, impact startups in South Africa? BRICS leaders, including Cyril Ramaphosa of South Africa and Vladimir Putin of Russia, are outlining plans to reduce dependence on the US dollar at the 15th BRICS summit. In his speech on Wednesday, Ramaphosa stated that global payment systems, including the SWIFT system for international transfers, were continuously used in political differences and urged member countries to use local currencies to facilitate trade. “We will continue discussions on practical measures to facilitate trade and investment flows through the increased use of local currencies. This is a matter we believe further discussions need to take place, particularly between our finance ministers,” Ramaphosa said. Putin said that BRICS nations are already developing effective mechanisms for trade settlements, currency and financial control. The payment mechanism will revolve around local currencies and sideline the U.S. dollar for cross-border transactions. “We are working to fine-tune effective mechanisms for mutual settlements and monetary and financial control,” Putin said. What does de-dollarisation mean for SA startups? According to experts who spoke to TechCabal, the de-dollarisation proposal by BRICS leaders presents both opportunities and challenges for startups. On one hand, easier access to capital in regions moving away from the US dollar could attract domestic and regional investments. Tshepo Magagane, an investment banker, says that reduced dependence on the dollar could present an opportunity for local limited partners to play a more significant role in VC funds. “Institutions such as the Public Investment Corporation in South Africa [would] need to play an increasingly important role in backing LPs looking to deploy capital locally. Local currency funding for local projects remove the headache of currency risk for all concerned, ” Magagane told TechCabal. There has been an increasing participation of local LPs, especially institutional investors, in the South African VC market over the past year. In May, the SA SME Fund announced that it had secured the first close of its R1 billion (~$51 million) Venture Capital Fund of Funds (VC FoF) at R600 million (~$30 million) against an initial target of R500 million (~$25 million). For the first time, one of the LPs of the fund was a local pension fund, the Consolidated Retirement Fund, which contributed R250 million of the R600 million raised. “A lot more institutional capital is likely to come into VC and we are also very proud that we were the first to convince a pension fund to allocate capital to a VC fund. We are expecting at least one more fund, if not more, to partake in the next raise of fundraising and we are very proud of that because it is a needed development in the growth of VC in South Africa,” Ketso Gordhan, CEO of SA SME Fund, told TechCabal. Despite this potential advantage of de-dollarisation in boosting local investor participation, Magagane emphasised that the importance of the dollar to South Africa. “The EU,US and China are important trading partners for South Africa, so the country should always position their FX holding accordingly,” he added. Without using the dollar, attracting international investments from dollar markets may be hindered by currency concerns. With the Rand having nosedived against the world’s leading currencies in the last ten years, dollar-denominated investors might be weary of cutting checks for the South Africa ecosystem. Despite the increase in participation by local LPs, international LPs, especially in dollar markets, still contribute a significant amount of capital to South African VC funds. “The reason why the US capital is important, is that all savings across the world find their way into US capital markets given the liquidity, price discovery, optionality, and the extremely important idea of political security.Global companies will continue to [need to] tap into US capital pools just given how deep and varied they are,” Magagane added.”Investors are more focused on a stable currency, given that is what inserts the foreign exchange risk into their planning.” Additionally, de-dollarisation could make cross-border transactions more complex, leading to higher transaction costs and operational challenges. This is important to note for South African startups whose expansion plans usually feature entrance into dollar-leaning markets. According to Will Green, founder of Co.lab, a holding company for collaborative ventures, stated that although this could be hedged by South African startups expanding to more BRICS markets, the reality is that there is not much activity by startups in those markets. “There still isn’t much activity between the startups ecosystem of most of the BRICS nations mainly because of language and culture restrictions. Even in VC most funds in South Africa are either raised locally or in dollar markets. Until we get to a point where there is a significant amount of cross-activity between the ecosystems of these countries, in the case of de-dollarisation, it would be difficult for South African startups to scale beyond our borders,” Green told TechCabal. To address these bottlenecks, Green believes there should be consolidated efforts between the member countries to assist startups setup their presence in these markets. “BRIC nations can help fill the disparity in the VC market where at the moment, African VC activity accounts for only 1% of the global total. If I were to rank the countries by order of which South African and Africa would be most aligned with, it would be India, China, Brazil, Russia,” Green said. With the good and the bad of de-dollarisation for South African startups established, beyond just speeches at the BRICS Summit, how likely is the process to happen in the next few years? Magagane believes that it is not very likely. “This is more of a political statement than an economic or a financial one. Countries should be focusing on local capital formation and they will have functioning economies,” he concluded.
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👨🏿🚀TechCabal Daily – TikTok opens up in Kenya
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy salary day As you reap the fruits of your labour today, help us reap ours by moving TC Daily to your Main/Primary folder. If you’re on desktop, drag and drop this email from Promotions to Main, and if you’re on mobile, simply click on the menu button and move to Main. In today’s edition TikTok to open office in Kenya MTN launches funeral insurance Jamit is hosting podcasts on the blockchain Funding tracker The World Wide Web3 Event: The Moonshot Conference Job openings Social Media TikTok to set up Kenyan office for content moderation TikTok CEO Shou Zi Chew and President William Ruto. Image source: Pulse Kenya TikTok has bought more time for itself in Kenya. Yesterday, TikTok CEO Shou Zi Chew met with the Kenyan president, William Ruto, to discuss setting up an office in Kenya to improve content moderation and TikTok’s African operations. This comes after Bob Ndolo, CEO of a digital consulting firm, Bridget Connect Consultancy, submitted a petition to Kenya’s National Assembly to ban the social media platform. According to Ndolo, the country’s Communications Authority has failed to regulate the social media platform, which he claims is promoting violence, explicit sexual content, hate speech, and offensive behaviour among the youth. While the Kenyan Parliament, at the time, said a complete ban would be impossible, they launched a probe into the activities of the platforms. Now, President Ruto’s meeting with the TikTok CEO has changed things. TikTok won’t be banned in Kenya, but it will work with the Kenyan government by opening an office in the country, and hiring more Kenyan content moderators. Monetisation concerns remain: President Ruto’s statement about the meeting doesn’t say anything about improving Kenya’s monetisation of the platform. Currently, no African country can earn money directly from TikTok, only through influencer marketing, affiliate marketing, or the marketing of their goods and services. Zoom out: Inquiries into the potential threat posed by TikTok to cultural and religious values, along with security apprehensions, are gathering momentum throughout the continent. Starting yesterday, August 24, TikTok was banned in Somalia after the government accused it of being one of the platforms where nude images and other materials deemed offensive to Somali culture and Islam were circulated. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. Telecoms MTN launches funeral insurance via WhatsApp GIF Source: DMForCredit MTN is making a play at insurance services. Under its new brand, Khava, MTN will offer budget-friendly funeral insurance covers to its South African consumers, the telecom announced on Thursday. The price of the prepaid funeral starts at R75 ($4). MTN said the product—MyMTN Prepaid Funeral Khava—is the first of a range of insurance products designed for the local market in South Africa. The insurance scheme is backed by Sanlam and facilitated by aYo Intermediaries South Africa. How do I get on board? Users will get onboarded through WhatsApp, while MTN’s Mobile Money platform will be used to receive payments. MoMo customers can secure coverage for either 6 or 12 months via a one-time premium payment. “From as little as R75 and no other fees, MoMo customers can secure coverage for either six or 12 months via a one-time premium payment, with benefits extending up to R20,000 ($1,063) under the MyLife Khava plan for individuals, and a collective sum of R33,750 ($1794) for the MyFamily Khava plan, which extends coverage to family members,” MTN said in a statement. Zoom Out: MTN’s new play at the insurance products comes as the telco is finding new revenue sources beyond voice and data products whose margins of profit have come under pressure. Creator Economy Jamit upgrades web app for podcasters Image Source: Jamit Jamit, a platform for podcasters and voice creators, has launched its upgraded web app. The new beta app is powered by blockchain technology and gives creators 100% ownership of their audio content files. Jamit in beta: The team at Jamit says the app is perfect for new and seasoned podcasters who want to turn their passion for storytelling into something they can monetise and promote to larger audiences. Jamit also provides more precise insights into audience demographics, listening rates, and session durations to help creators better understand their listeners and create content that is more engaging and relevant. Furthermore, the new web app also comes with a Virtual Studio feature for podcasters and audio storytellers to be able to record solo sessions or invite guests or co-hosts to join their studio sessions. In addition to the new features and tools, Jamit is also adding four original podcasts to its network. These podcasts feature diverse voices, podcast themes, genres, and categories. Zoom out: Because Jamit is 100% powered by blockchain technology, creators get complete ownership of their audio content, even after it has been published and distributed. Jamit also allows creators to connect directly with their subscribers, giving them more control over their community. TC Insights Funding Tracker Image Source: Deal Tracker This week, Global fintech company LemFi received $33 million in Series A funding in a round led by Left Lane Capital. Other participating investors include Y Combinator, Zrosk, Global Founders Capital, and Olive Tree. Here are the other deals this week: Kenyan fintech company Zanifu received $11.2 million in debt-equity in a pre-Series A funding round led by Beyond Capital Ventures. South African esports company Nibble Africa raised an undisclosed amount in seed funding from E Squared. 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. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $25,941 – 1.41% – 10.49% Ether $1,650 – 1.41% – 11.17% CyberConnect $3.82 – 7.02% + 111.13% XRP $0.51 – 2.39% – 27.23%
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