Months after $2m hack became public, Patricia converts customers’ assets into ‘Patricia tokens’
After freezing withdrawals for users of its platform in response to a breach, Patricia has announced that it converted all current outstanding BTC and naira balances to its token. The retail trading app Patricia has converted the BTC and other tokens their customers own to its Patricia Token (PTK) token. A Friday post announcing its new app, Patricia Plus, described PTK as a stablecoin backed by the U.S. dollar, with 1PTK equal to $1. Yet the big question Patricia’s customers have is if they will finally have access to their funds. In May, Patricia froze withdrawals for users of its platform after sharing that it was the victim of a breach. The company said Bitcoin and naira assets had been compromised and told customers that it had lost an undisclosed sum. Patricia did not share the date of the incident but TechCabal exclusively reported that the breach happened in January 2022 and cost the company $2 million. The return of Patricia Plus Ironically, the launch of the Patricia Plus app in April triggered what closely resembled a bank run. While customers had withdrawal restrictions on the old app, the new app had no such restrictions, and many customers quickly tried to move their funds. Like most bank runs, the retail trading app did not have immediate liquidity to meet those needs. Many customers have been unable to access their funds since April, and the decision to convert customer assets to the company’s stablecoin is an attempt to solve the problem. Yet the move raises many questions, and it is doubtful that this will let customers access their funds. A crypto expert, who asked to be identified by his X handle @samlogic_, told TechCabal, “Their monies will be a worthless token printed out of mid-air. I think the funds are long gone; Patricia has misappropriated customer assets just like FTX.” By failing to keep its customer’s assets safe–the primary duty of a centralised exchange–Patricia fell victim to a breach that has now put it in a place where it will struggle to return its customer’s assets. Its workaround to that problem is to unilaterally convert its customer assets to stablecoins, rightly raising questions of legality. The most likely scenario is that customers who immediately have access to Patricia tokens will quickly attempt to sell the assets to get their monies back. That market frenzy may cause the stablecoin to depeg and return customers right where they started. TechCabal attempted to get comments from Patricia, but there was no response at the time of this report.
Read MoreThe CBN is bringing back BDC operators two years after freezing them out
The Central Bank of Nigeria has shared new guidelines for the sale of FX by Bureau De Change (BDC) operators in the country, ending a 25-month ban. The apex bank is hoping that the new policy will stabilise Nigeria’s FX market. Nigeria’s Central Bank is ending a two-year ban on FX sales to the Bureau De Change (BDC) operators in its newest move to stabilise Nigeria’s volatile FX market. Under ousted CBN Governor Godwin Emefiele, the CBN banned sales of FX to BDC operators in 2021. The apex bank is now hoping BDC operators will ease pressure on the FX market. In a statement published on its website on Friday evening, the CBN said the spread on buying and selling of FX by BDCs will fail within a range -2.5% to +2.5% of the FX window’s average rate from the previous day. The naira jumped this week, exchanging for N855/$1 on the parallel market as of Friday morning and trading at around N744 on the I&E window. In line with the new operational guidelines, the CBN will also require BDCs to submit periodic financial reports on the Financial Institution Forex Rendition System (FIFX). The CBN’s thinking is that BDCs can help increase the supply of FX in the market and ease pressure on the rates. BDCs have traditionally benefited from arbitrage and Nigeria’s multiple exchange windows. The price of BDC licences declined significantly, following news of Nigeria’s move towards a single exchange rate. But CBN’s latest bet will bring these operators back into business. Some observers say that supplying FX through BDCs could potentially contribute to inflation if not properly managed. The CBN’s attempt to unify the FX rates has failed to hit home due to the bank’s inability to meet demand. As a result, the parallel market continued to be the viable source of supply, opening up a significant arbitrage opportunity.
Read MoreNDIC may probe the directors at Eyowo and 182 banks whose licences were revoked
The Nigeria Deposit Insurance Corporation (NDIC), a statutory body that protects depositors’ funds, might investigate the directors of 183 banks whose licenses were revoked to determine if financial malpractice contributed to the revocation. The Nigeria Deposit Insurance Corporation (NDIC) has said that the Inter-Agency Task Force may soon be called to investigate the conduct of the directors of the 183 microfinance banks (MfBs) and Primary Mortgage Banks (PMBs) that have had their licences revoked. Notable institutions within this group are Eyowo and Purple. According to the NDIC, the Inter-Agency Task Force is mandated by the Failed Banks Act to determine if financial malpractice contributed to the shortcomings and eventual shutdown of some of those banks. In May, the central bank (CBN) revoked the licences of these institutions because they had either been inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months. Bello Hassan, the managing director and chief executive of the NDIC, hinted at this investigation in Lagos during a workshop arranged by the corporation. He also noted that the agency is already taking legal action against suspected defaulters. “I am aware that 12 prosecution cases are ongoing at various courts, 25 ongoing investigations with the Financial Management Information Unit (FMIU), 11 with the Economic and Financial Crimes Commission (EFCC), and five concluded investigations with the Financial Management Information Unit (FMIU) for advice and prosecution. This is an indication that we are on the right course,” he concluded.
Read MoreDerek Thompson is building Zambia’s biggest e-commerce marketplace
One Christmas, Derek Thompson’s friend was swindled when trying to buy Christmas gifts on Facebook. After this experience, Thompson was determined to provide an alternative solution for people in Zambia and build Gwila. Gwila is one of the first e-commerce marketplaces in Zambia that allows people to sell their products and services, and Derek Thompson is determined to expand into other markets as soon as he can. He believes that Gwila provides Zambian youth with an opportunity to reach a wider market and earn money. According to Thompson, “We’re here to serve the market.” TechCabal: What’s the e-commerce behaviour in Zambia like? DT: Zambians are already accustomed to buying things online. The sad thing is that they typically buy from social media where they frequently get swindled. There are two factors in making sure that they access e-commerce, one being payments and the other being trusted sellers. In terms of payment, we accept mobile money which nearly all Zambians have access to. We don’t want to accept any cards and have decided on mobile money as it is more inclusive and debit cards are more susceptible to fraud. We’ve also got the buyer protection and refund policy which protects the buyers from scams and gives them a timeframe within which they can cancel the order or return the products if they’re not as advertised. It’s not a very mature market right now and so we’re doing all we can to make the buying process less stressful for customers. TC: How good is the logistics industry in Zambia and how does that affect operations at Gwila? DT: We partner with courier companies that do bike deliveries around, and we also have companies that do bulk deliveries across the country. Logistics is not much of a challenge for us because we’re mainly delivering small packages that are easier to move about. Thankfully, we have a pretty good road network in Zambia so that’s not much of a problem for us. TC: What are the challenges that come with building a startup like Gwila? What does it take to be a founder? DT: One challenge we’ve had is funding. It’s not easy to wake up in the morning with a great idea and just find people who automatically believe in your idea and would like to give you money for it. You basically have to fund everything yourself at first and prove that it works for others to see before securing funding down the line. Countries like Nigeria are different because it’s a much more mature market for investing. In Southern Africa, it’s really tough. Another challenge is skill. It’s hard finding the right people to build with you who understand the nascent nature of the online market and know how to speak to the customers. Luckily, I can do a lot of these things because I have a technical background. I’ve consulted for huge brands, across the UK, Europe, the Middle East, and certain parts of Africa, and I understand what it takes to build a product to get it to market to put a team together quickly. I’m lucky in that sense because I’m pretty much able to gather the different skills together and fill in the gaps where needed. TC: Do you see collaborations with other sectors or industries? DT: Absolutely. With the breakneck speed that the technology space is going, and just business in general, everything is about partnerships. We’re focused on partnerships with different sectors, be it logistics, payments, or even new products for our site. We’re already talking about a partnership with telcos for peer-to-peer payments on the platform. TC: How do you onboard vendors? DT: We initially had this huge process for onboarding vendors, which included uploading their IDs and verifying their addresses among other things. We approached this from a security perspective and that made sense. However, we quickly realised that is a bottleneck and makes it difficult for vendors to onboard. Vendors want to sign up and start selling immediately and all of the questions and long processes just discourage them. What we’ve now done is focus on security measures internally. We make it really easy for vendors to onboard meaning that they just go on the portal, fill in the application form which asks for their name, and phone number, and encourage them to set up a store immediately. When they’re on the portal, they register who they are and after going through the process, they can upload a name and logo for the store, and then publish products. Now, what we do, is that we scrutinise products that are being posted. So instead of scrutinising the vendors, we review each product to be sure that it meets our criteria before approving it to be published. From a security point of view, we have put in place measures to protect against fraudulent vendors and one of those is bank-only settlements. So even though customers pay us using mobile money, we settle with the vendors directly to their bank accounts, and after seven days, to be sure that the customer has received their goods without any complaints. We pay into banks to advantage of the KYC. We rely on the banking system to have already done their due diligence so that if there’s any problem with any of the vendors, the bank’s system already has their details. TC: What should be expected from Gwila in the next five years? DT: Right now, we’re serving a local Zambian market but we plan to expand to other African countries. That’s our vision. We want to cover the continent in the shortest time possible while being cognizant of the fact that we need collaborations to do this. In the next five years, we’re going to collaborate with as many sectors as possible to facilitate this. We’re here to serve the entire market. *This interview has been edited for clarity.
Read MoreHow will AI impact the PR industry in Africa? Experts have their say
African PR and communications professionals share their opinions on the impact that AI tools have on the industry and what role they will play in the sector in the coming years. According to the 2022–2023 Africa PR and Communications report, the majority of professionals in the industry regard artificial intelligence (AI) as the technology that will revolutionise the industry over the next decade. Furthermore, the report states that AI is already making its presence felt in the industry and being employed for a variety of tasks, including media monitoring, analysis and reporting of negative brand sentiments and fake news. On the back of the report’s findings, TechCabal reached out to numerous PR professionals on the continent to get their opinions on how the technology is impacting their work and what they think the future holds. David Idagu (Africa consultant, AllisonPR) According to David, AI tools like ChatGPT already have an impact on the work he does at AllisonPR, which includes media relations, crisis management, and business communications development. “I see it as a way to help increase my productivity and allow me to automate some tasks that I would have spent time doing manually. This allows me more time to focus on more high-level strategic inputs for respective clients, which is really what the clients pay for,” Idagu told TechCabal. On the concerns that AI tools pose a threat to professions in the industry, Idagu believes that despite the convenience they come with, there is still a significant amount of human input needed when using the tools. “These tools just help to ease your work and not necessarily do the work for you. No matter what you get from these tools as output, you still need to make your own input, make your own edits and tweak it in a way that suits your narrative or suits the objectives of what you’re trying to achieve. So there is still a lot of human input needed even when using the tools,” he added. Victoria Crandall (founder, NoFilterPR) Victoria, who is also CEO of Lagos-based NoFilterPR, shares that in the beginning, she was sceptical of the significant impact that tools like ChatGPT could have in her line of work. She felt that the hype of ChatGPT was exactly just that, hype. “I felt like it was overhyped. My thinking was that this can’t really help me much in my day-to-day tasks and workflows. I will admit that I pretty much took a black-and-white point of view when it came to the relevance of AI tools in PR and communications,” she said. But as she learnt more about them, her views gradually changed to that of appreciation of the efficiency that can come with using the likes of ChatGPT in her processes. “I’ve started to backpedal on the idea that AI is just hype. This has mainly been because I’ve been working with other publicists in a really fantastic PR training group that’s based in the US. Through the group, I have been able to identify ways to employ the tools to make my work much more efficient and effective,” she told TechCabal. On the future of AI in PR, she adds that although she now appreciates the technology, it is her opinion that it is still at a point where its hype exceeds its true capabilities. She believes that because most of the important elements of PR are based on human relations, there is still a long way to go before AI can pose a significant threat in completely replacing humans in the industry. “If you look at what media relations is, it’s basically mastering your client’s business and industry inside and out. Reading what journalists write, and knowing the type of stories that each publication would consider. It’s also about building relationships with industry players and I don’t see how a computer programme can do that uniquely human skill,” she concluded. Autumn Marie (founder & CEO, KGL FWD) KGL FWD is a Rwanda-based creative, communications, lifestyle, and tourism agency. As its founder, Autumn Marie states that some of the tools they have used are Chat GPT, TLDR, Grammarly and Brandwatch as well as Canva’s new AI tools. They are also exploring tools such as Propel, Muck Rack, and Cision for pitching and media list building. Marie thinks that the way for the industry to efficiently leverage AI is to provide awareness of its impact on the industry and train both current and future PR professionals on the technology. “[We need to] build ecosystems for young people who want to enter the field to receive adequate professional development and mentorship, and for us already in the field to be daring and not fearful of emerging technology, and most importantly for us to begin to build our own AI tools that speak to the most urgent needs of Africa,” she said to TechCabal. In the future, she believes that AI will contribute towards making PR professionals more well-informed and more efficient as well as creating more PR tech career opportunities. I think we will see a future where AI tools are used to help all but especially entry-level and mid-level staff become better writers and improve their professional skills by providing them with more points of reference. As we build more of our own tools and provide more culturally relevant data, we will be able to use AI to accurately translate material into a much larger range of African languages and this will be powerful and necessary for pan-African PR campaigns as well as hyper-localised ones,” she added. Mary Gearing (Deputy managing director, Magna Carta) At Magna Carta, a Johannesburg-based reputation management consultancy firm, Mary Gearing and her team utilise AI tools for media monitoring and analytics, media and influencer database management and crisis simulation. They are also stress-testing text-based tools for writing and monitoring the “virtual influencer” movement. “Although AI is predicted to emerge as a disruptive force, for PR professionals it has the potential to not only streamline PR processes
Read MoreKobo360 appoints Cikü Mugambi as new CEO
Days after its founding CEO Obi Ozor was appointed transport commissioner in Enugu, Nigerian logistics startup Kobo360 named current COO Ciku Mugambi the new CEO. Kobo360, a Nigerian logistics startup, has announced the appointment of a new CEO, Cikü Mugambi, after its co-founder, Obi Ozor stepped down to serve as commissioner of transportation in Enugu State. In a statement shared with TechCabal, the company’s Board of Directors named Mugambi—the COO—as Ozor’s successor. Mugambi joined Kobo360 in 2021 after stints at IFC (International Finance Corporation), Next Billion Growth and KPMG. Speaking on her appointment, Cikü Mugambi said, “Powering a complex and challenging supply chain and using technology to scale inter-regional trade is a long-term generational mission; this is what Kobo360 set out to achieve when it launched six years ago, and I am honoured to be tasked with continuing the company’s journey. Obi has been a powerful advocate for the company, and we thank him for his hard work and visionary mission”. The company also appointed Fola Adeola, the co-founder of Guaranty Trust Bank, as the new Chairman of the Board of Directors. “As an early backer of Kobo360, I am excited to work even more closely with the Board, Cikü, Ayo and the entire team, to continue to build an African technology company that powers our continent’s trade. The company is at an inflection point and has made significant progress on its journey to profitability. This is a significant platform on which we plan to grow and scale even further,” Fola Adeola said of his appointment. Since its launch in 2017, Kobo360 has served customers across 8 African markets, onboarded more than 30,000 trucks and 700 customers onto the platform. The company claims to have moved over 9 billion kg of goods and created over 150,000 direct and indirect jobs. It adds that it has secured strategic partnerships and integrations with local commercial banks, insurance companies and OEMs, including Flour Mills of Nigeria, Unilever, CimIvoire, Kasapreko, One Acre Fund, United Bank of Africa, Fidelity Bank and Tangerine Insurance, among others. The outgoing CEO Obi Ozor said, “My big vision for Kobo360 was always to make an impact on the lives of many through entrepreneurial innovation, business and economic impact. Alongside my experienced leadership team and Board, I know that we’ve made great strides in achieving this and the work is set to continue, with Cikü, Ayo and Mr. Fola Adeola now firmly in their new roles. My journey with Kobo360 may be changing, but my commitment to its success remains unwavering.”
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How to flash your Android without a computer 2023
In a recent article, we covered how you can flash your Android with the use of a laptop. Nevertheless, flashing an Android phone without a computer can be a useful skill to have, especially when you can’t access a pc. This guide will walk you through the steps to successfully flash your Android phone without the need for a computer. 1. Backup data Before you begin the flashing process, it’s essential to back up all your data to prevent any loss. Use built-in backup options or third-party apps to save your contacts, messages, photos, and any important files. 2. Enable developer options Go to your phone’s Settings and navigate to “About Phone.” Look for the “Build Number” and tap it repeatedly until you see a message confirming that Developer Options have been enabled. 3. Enable OEM unlocking and USB Debugging to continue android flash Inside Developer Options, enable “OEM Unlocking” and “USB Debugging.” These options will allow your device to communicate with external tools for flashing purposes. 4. Download required files to your Android to flash without computer Download the necessary files for flashing. This might include a custom recovery like TWRP (Team Win Recovery Project) and the ROM or firmware you want to install. Ensure that you download files compatible with your specific device model. 5. Transfer files to your phone Connect your Android phone to a Wi-Fi network and transfer the downloaded files (custom recovery and ROM) to your phone’s internal storage or an external SD card if applicable. 6. Boot into recovery mode to flash your Android without a computer Power off your phone. Then, boot into recovery mode. The method can vary slightly between devices, but it usually involves pressing and holding specific button combinations (like Volume Up + Power) until the recovery menu appears. 7. Backup your current ROM (Optional) Before flashing, it’s a good practice to create a backup of your current ROM using the custom recovery. This will allow you to restore your device if something goes wrong during the flashing process. 8. Flashing the custom recovery Using the recovery menu, flash the custom recovery (TWRP) that you downloaded earlier. This will replace the stock recovery on your device. 9. Wipe data and cache (Recommended) In the recovery menu, perform a factory reset by wiping data and cache. This will ensure a clean installation of the new ROM and prevent any compatibility issues. 10. Flash the new ROM Using the custom recovery, navigate to the location where you saved the ROM file and initiate the flashing process. Once the ROM is successfully flashed, your device will have the new firmware or custom ROM installed. 11. Reboot your device to complete Android flash without computer After flashing is complete, reboot your device. It might take a little longer than usual during the first boot as the system is adjusting to the changes. And that’s it! You’ve successfully flashed your Android phone without a computer.
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👨🏿🚀TechCabal – Bolt’s new milestones
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF More territories are banning TikTok on state-owned devices. Unlike Kenya—which is still considering a TikTok ban—it’s not for moral reasons. Yesterday, New York joined other US states, Canada, Australia, Taiwan, Denmark, and many others in banning TikTok on state-owned devices. All these countries are worried that the Chinese-owned platform might be misusing the data it has and poses a security threat. We neither support nor oppose any of it, but if you’re considering a TikTok ban, a cybersecurity threat might be more a rational reason than moral grandstanding. In today’s edition Nigeria disburses $6.5 million to states Moniepoint goes into retail banking Bolt marks milestones in Nigeria and Kenya Funding tracker The World Wide Web3 Event: TC Live Opportunities Policy Nigeria disburses $6.5 million to each of its 36 states GIF Source: Zikoko Memes Nigeria is sharing palliatives. Yesterday, the country’s federal government approved the disbursement of ₦5 billion ($6.5 million) to each of the 36 states to cushion against the effect of fuel subsidy removal. Why? Well, with the prices of food and petroleum skyrocketing due to the removal of fuel subsidy, things have gotten pretty tough. The plan here is for the states to use this money to buy essential grains like rice, beans, and maize. States should also use the money to buy fertilisers for local farmers. In addition to the money, the federal government also released five trucks of rice each to all its 36 states. There are strings attached. Per Channels TV, 52% of the funds were grants while the remaining 48% are loans that the state governments will eventually need to repay. Some concerns: Currently, only ₦2 billion ($2.6 million) has been distributed to each state, but the governor of Anambra state reported that the influx of refugees from Niger Republic is posing a challenge to the distribution of much-needed palliatives. The National Emergency Management Agency is in charge of delivering essential food supplies to states that share borders with the Niger Republic. Meanwhile, the governors are rolling up their sleeves to review the nation’s social register to ensure that every citizen gets their fair slice of the support. Secure payments with Monnify Monnify has simplified how businesses accept payments to enable growth. We are trusted by Piggyvest, Buypower, Wakanow, Fairmoney, Cowrywise, and over 10,000 Nigerian businesses. Get your Monnify account today here. Fintech Moniepoint moves into retail banking Moniepoint, the Nigerian fintech, is venturing into personal banking through the launch of its consumer app and debit app. Withdrawals, debit cards, and more: Moniepoint is bringing the heat to competitors Opay and Palmpay through its retail banking focus. With its new app, users will be able to make transfers, pay bills, and buy airtime, while its debit cards, issued through Mastercard and Verve, can be used at ATMs, POS terminals, and online. Image Source: Timi Odueso/TechCabal The company also says it will introduce a first-of-its-kind automated dispute resolution system that will enable users to log disputes for failed card transactions and track them until they get a full reversal within 48 hours. This is in line with the CBN’s guidelines on chargebacks, which mandate a 48-hour reversal period. The right time: For an 8-year-old payments company, Moniepoint could have launched a personal banking product earlier, but Ope Adeyemi, Moniepoint’s senior vice president for channels and sales tools, told TechCabal that the company chose now because “[Moniepoint] are positioned to do it right.” He added that the company has designed its personal banking app to be as reliable as possible and added features such as salary advances. The app will store sensitive customer debit card information, rather than keeping it on the physical card. Adeyemi also added that a play at remittances would come later for both its business customers and its personal bank customers. Learn with Unicaf Unicaf isinviting you to the Lagos Oriental Hotel on the 31st of August, 2023, at 11:00 AM WAT for a panel titled “The Role and Impact of AI on the Job Market: The Future is Here”. Attendees will be awarded up to in 75% Unicaf Scholarships to pursue internationally recognised degrees from one of Unicaf’s respected partner universities in the UK and Africa. Register here. Mobility Bolt records milstone in Kenya and Nigeria Image Source: Bolt Bolt is wheeling Africans across their nations. The ride-hailing service announced that it has facilitated over 100 million rides in Kenya since entering the market. Over the past decade, Bolt says it has grown from a groundbreaking startup to a global leader in the mobility sector. The company says it remains focused on providing an innovative technology platform that enhances safety, affordability, and sustainability. ICYMI: In July, the company reportedly surpassed 150 million customers in over 45 countries and 500 cities. These customers are spread across its suite of mobility products which include ride-hailing, micro-mobility (scooter and e-bike rental), food delivery, grocery delivery, Bolt Drive which is a free-floating car-sharing service, and Bolt Business, a corporate mobility service. 250 million rides: In Nigeria, the company announced that it completed over 250 million rides since its launch in 2016. In the announcement shared yesterday, the ride-hailing company noted that it had recorded over 3 billion kilometres in distance travelled by its users. Bolt said it had recorded over 7 times growth in the rides business since it was launched in 2016. “As we reach these remarkable milestones in the ride-hailing market, we remain steadfast in our commitment to ensuring safety, affordability, and reliability for all users on our platform,” said Yahaya Mohammed, its country manager for Nigeria. TC Insights Funding Tracker This week, Kenya-based ed-tech company Ed Partners secured $1.5 million in debt funding from a social impact investor Oikocredit. Here are the other deals this week: Ghanaian agricultural company Oyster Agribusiness raised $310,000 in grant and debt funding from Root Capital. That’s it for this week! Follow us on Twitter, Instagram, and LinkedIn for more funding announcements. You
Read MoreTransforming last-mile delivery in Nigeria
Moonshot by TechCabal is the conference that will bring together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation. Join us in Lagos on October 11 and 12. In this article built around the conference, Hannatu Asheolge writes about what it would take to transform the last-mile delivery space in Nigeria to ensure that it reaches its full potential. Hylehirra Samaila is an entrepreneur selling clothes and shoes on social media since 2021 via HeraCloset. Of all the parts of running a business, dealing with logistics is the most challenging and distressing for her, despite being an integral part of her business. Having products delivered to customers can be a hassle, as delivery riders are typically unreliable, delivering goods much later than planned and riling up her clients in the process. Nigeria has one of the fastest-growing last-mile logistics industries in Africa, driven by a combination of factors like the growing youth population and increasing internet penetration—among others. There is a rising demand for consumer goods and services across the country and revenue in Nigeria’s e-commerce scene is expected to reach $9.2 billion by the end of 2023. These goods must be moved across various points, necessitating last-mile deliveries. Due to the industry’s success, there has been an influx of last-mile logistics startups in recent years. However, these startups suffer from a variety of challenges which impede the growth of the sector, ranging from infrastructure deficits to policies that undermine the ease of doing business, low trust among customers, and high operational costs. The problems of last-mile delivery in Nigeria Nigeria has a terrible road network, the worst in Africa, which is one of the biggest problems plaguing last-mile delivery in the country. According to Ope Onaboye, CEO of e-commerce fulfilment startup, Renda, their Kenyan customers can order goods and have them delivered in 15 minutes due to their advanced road network. This is rare in Nigeria, especially in major cities like Lagos, which is one of the most congested in the world. Commuters spend a minimum of three hours in traffic daily, and for a logistics business, this translates to less productivity and increased operational costs. Traffic congestion and a bad road network have remained the biggest pain points in logistics management, because, beyond increasing operational costs, they nullify delivery estimates and predictions, breaking the system flow of deliveries and leading to dissatisfied customers. Samaila has had several cases where she’s had to refund angry customers for deliveries not making it out on time, which affects her business’s growth and incurs losses for her. “Sometimes you send out orders as early as 9 a.m., promising the customers that they’ll receive it in two or three hours, only for their deliveries to be stuck in traffic for up to seven hours,” she lamented. In May 2023, the Nigerian government removed a fuel subsidy which had been keeping the price of fuel low for its citizens, effectively raising the price from ₦190 to ₦610. This single policy has negatively impacted last-mile operations in the country, causing them to lose customers or lose money trying to satisfy customers. “If we’re being realistic, you can’t just move from charging customers ₦2,000 for delivery to ₦6,000. You have to find a middle ground that your customers can afford, which means that you’ll be operating on a deficit in the cost versus your revenue because you cannot transfer the cost of logistics to your customers after a certain point,” Onaboye shared with TechCabal on a call. Business owners like Samaila have had to find ways to cut costs for customers, which she says is exhausting. Delivery has moved from what typically costs ₦2,000 to ₦3,000 or ₦3,500. Fortunately for Samaila, her customers have been understanding of the situation and do their best to cooperate, for the most part. Onaboye cannot say the same for his company. Some of Renda’s clients have not been as understanding, and the fuel price hike has reduced the volume of orders they process. “We have to continuously engage with stakeholders, which is not easy, as some of them have turned their backs on us. The fuel price hike has hit us in terms of volume, but we have to keep ensuring that our customers feel supported and our partners are happy. We have these conversations every single day,” Onaboye shared. Transforming last-mile delivery in Nigeria The Nigerian logistics market size is expected to reach $58.6 billion by 2029, with road deliveries being the fastest-growing segment. This growth cannot be actualised in isolation without the government playing a role. Recent government policies have resulted in the shutdown of a good number of last-mile delivery startups and, if it continues, will only impede the industry’s growth. Logistics is pretty much transportation, which is using vehicles to move goods, and so the environment that allows for smooth transportation needs to be there. Good roads and road networks not only improve delivery times but reduce the maintenance costs of vehicles. The more dilapidated the roads are, the easier it is for vehicles to get damaged and require fixing. Kana Fanda, who runs a small last-mile delivery business, says she’s lost track of how many times she changed tyres for her bikes last year. “You can’t even blame the riders because the bumps and potholes on the roads are very bad. There are times when the entire revenue made goes into fixing a bike due to a road accident, which is very bad for business.” Now, her bikes only deliver parcels to areas where they’re certain the roads are smoother. While she has had to give up a large number of her customers, thereby slowing the growth of her business, she believes that that is better than spending the bulk of her revenue fixing bikes. Government has another important role to play in transforming last-mile delivery, apart from fixing roads. According to Onaboye, the government needs to be deliberate about the policies that are implemented and how they affect businesses.
Read MoreHow can startups partner with influencers to reach a larger audience?
Moonshot by TechCabal is the conference that will bring together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation. Join us in Lagos on October 11 and 12. In this article built around the conference, Faith Omoniyi writes that influencer-marketing can be a viable approach for African startups trying to reach larger audiences, although it comes with several challenges. More than ever before, African startups are riding on the wings of digital influencers through influencer marketing to increase awareness for and reach of their products and offerings. Influencer marketing is a type of marketing strategy that focuses on using individuals—influencers—with a significant online presence and a dedicated following to promote products, services, or brands. These influencers have the ability to sway the opinions and purchasing decisions of their followers based on their credibility, authority, and relatability within a specific niche or industry. When approached strategically, influencer marketing can be a viable approach for African startups, provided it is aligned with the brand’s objectives and target audience, said Edward Israel-Ayide, a public relations and marketing communications consultant. However, forging this alignment and getting influencers to understand a startup’s objectives has proven to be a big challenge, according to Adewale Yusuf, CEO of AltSchool Africa. “You know, [the tech space] is not [influencers’] world. Most of them understand the entertainment scene. Trying to get them onboard [tech products or brands] is like the biggest challenge,” he said. While brand alignment is crucial for startups-influencer partnerships, influencer marketing is expensive and not suitable for startups that are just starting. “Influencer marketing should come when a startup has found its feet and when they have established a brand identity, so it will inform their choice of influencer marketing,” said Kola Muhammed, editor at Pulse NG. “Get your books right, get your products right, get your organic marketing right, get your services right before delving into influencer marketing, else an influencer partnership can bring you more traffic than your business can handle,” he added. One-size-fits-all? Israel-Ayide notes that while influencer marketing might prove viable for African startups, the relevance and authenticity of the influencers are key ingredients in making influencer- startup collaboration work long term. “Influencers must resonate with the startup’s values, target audience, and brand identity. Authenticity plays a pivotal role, as African consumers tend to forge stronger connections with influencers whose beliefs align with the brand’s message and image.” Additionally, the diverse cultural landscape across Africa requires nuanced understanding. What might resonate in one region could fall flat in another, said Israel-Ayide. “Startups must collaborate with PR and marketing agencies to undertake extensive research, which will provide them with a comprehensive understanding of local preferences, emerging trends, and cultural nuances, enabling them to select influencers who can effectively represent the brand’s narrative within each setting,” he said. Afrobeats startup mashup While startups collaborate with different micro- and nano-influencers to promote their brands, Muhammed is of the opinion that African startups can ride on the wave of the Afrobeats-to-the-world movement. Afrobeats, a term that describes the most popular music coming out of West Africa, is gaining massive acceptance all over the world. While there are obvious and overtly capitalist reasons for the burgeoning interest in music from Africa, Muhammed believes African startups can leverage this influence for brand awareness. Afrobeats artists are selling out stadiums outside the shores of the continent, meaning further reach for the startups. “Imagine a Flutterwave lighting up the O2 Arena. Music can help tech, tech can help music,” he said. “Take Pepsi, for example: Pepsi goes for the top guys—Pogba, Burna Boy, Michael Jackson, Messi—influencers in their own right, to market their products. I think Nigerian and African startups can also adopt that. Imagine Wizkid or Burna Boy selling out the O2 Arena in London and you have different startup logos flying on the homescreen,” he said. Did you enjoy this article? Then click this link to register for Moonshot and check out our fast-growing list of speakers coming to the conference!
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