Next Wave: Africa’s investors have their work cut out for them
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner First published 24 September 2023 <!– Standfirst Smallscale modern retail in Africa will not completely replace open markets in Lagos, souks in Cairo, or storied markets like Karatina in central Kenya. But a subtle shift that can become a major marker of African retail is underway. Warning. Long read ahead. Please find a comfy seat, some coffee and relaxing music. It’s Sunday after all! One of the biggest news stories last week, at least in Nigerian tech circles, was my colleague’s (Ngozi Chukwu) reporting about Payday, the virtual card app. Per her reporting, Payday which announced a $3 million pre-seed earlier this year is now seeking a buyer after a potential deal with Moniepoint fell through amidst internal strife and customer complaints. Like Payday, two other fintechs, Dash and Float, raised significant sums which were subsequently lost or misappropriated. Stories like this, where startups raise significant sums only to go bust months down the line, inevitably get a lot of attention. The businesses involved usually have thousands of customers and interested stakeholders from investors to regulators. A sample of African startups that have gone from raise to bust. | Infographic by Victoria Olaonipekun, TC Insights The stories are a reflection of the inflection point Africa’s startup and startup investing industry has come to. Namely, the age of accountability. Not just accountability for founders, but accountability for a venture investing model where the proper signals have been overwhelmed by the noise of the herd and the momentum of hot deals. It is not an African thing. Globally, the venture capital industry appears to be at a junction where its most potent narrative—that it funds breakthrough innovation no one else will touch, and generates superior returns—is wearing out. Startup busts are expected given the nature of the market. But not fraudulent implosions. In short, venture investors are being held liable for the implosion (especially where fraudulent) of apparent portfolio winners. Don’t believe me? Talk to any limited partner (LP) worth their salt, or call your general partner friend and ask for an honest summary of how conversations with their fund’s investors are going. Investing in private untested businesses is supposed to be difficult. In Africa, due to the lack of widespread and efficient formal systems, the uncertainty inherent in mostly informal markets raises the difficulty level a notch, or several notches higher. This means that both entrepreneurs and investors take a mutual oath to fight through the risks of building anything on the continent. It also means African VCs, more than their American, European or Asian counterparts, have to fight the tendency to groupthink. Leaving the in-group For an asset class whose name and preferred origin narrative celebrates anti-pattern matching, venture investing is susceptible to herd thinking. Following the herd is not always a bad thing. But this is typically only true when the herd is following established and clear standards. Where the herd is trying to find a way, everyone doing the same thing and kissing the ring of Lord Average raises the risk premium for the group. The last 18 months are perhaps the best illustration of the capital-destructive power of groupthink and how it can affect even the most respected venture firms. As a result, following the herd is now (at least on social media) openly railed against. What is bigger than the schadenfreude (of which there’s not too much because somehow everyone was touched) is the lesson that for venture capital to be taken seriously. It ought to be reoriented around clear standards. At first glance, this looks like it’s opposed to be anti-herd thinking. But it is not. Venture capital suffers from an acute lack of standard definitions and methodologies in much the same way startups need to come clean about what “revenue” means. In this scenario, leaving the in-group can simply mean doing the hard work even if it clashes with the latest trend. Take a minute and think about what doing venture investing this way can mean for Africa where areas like financial inclusion have been squeezed for every ounce of milk? Partner Content: Cenoa, the dollar account for emerging markets, launches in Nigeria Momentum is one of the reasons a herd of buffalo is not something you want bearing down on you. We’ve heard stories from investors and entrepreneurs alike of how much momentum crushed term sheets and upended cap tables (much later). However, momentum investing is not a viable venture capital strategy. Again, this is a global problem. To quote Professor Aswath Damodaran, Wall Street’s Dean of Valuation: While there are a few exceptions, venture capitalists for the most part are traders on steroids, riding the momentum train, and being ridden over by it, when it turns. In Africa, it can be the precursor to startup death, and capital destruction that will (unlike the Americas) be difficult to rebuild and recover from. Dumping the fluff Narrative is powerful. Narrative properly harnessed can create a world of difference and value. But in the finance world, narratives only last so long. The simpler the narrative, the easier it is to become folklore. But the worst thing about narrative-driven financials is that in an environment where knowledge is dreadfully imperfect, the best storytellers (not necessarily the best businesses) win. Look, narrative investing is cool, maybe even fun. But it can also suffer from an inadequacy to demonstrate substance when cattle dung hits the fan. That is not to say an investment thesis or term sheet that can be distilled into a story is bad. The point is that over-indexing on this type of substance is a great way to get caught up in the buffalo herd stampede. Partner Content: Tech Studio Academy celebrates five years of empowering tech enthusiasts with ₦5 million scholarship Whether you are trying to raise from local LPs or hitting up DFIs and foreign LPs, it is only a matter of time before reality catches up with the
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TechCabal Daily-Kenya signs $60 million deal with the US
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning! Take a moment to send love and light to the people in South Africa who have been enduring escalating power outages and the mounting chaos surrounding the selection of a new CEO of Eskom, the country’s electricity provider. After whittling down 150 candidates to three, Eskom board’s chosen CEO candidate was rejected. Find out why. In today’s edition Kenya signs $60 million deal with the US Nigeria pushes for tech startups listing on NGX Starlink’s African challenge The World Wide Web3 Event: Moonshot Conference Job opportunities Mobility Kenya signs $60 million deal with the US Image source: The US embassy in Kenya The United States Millennium Challenge Corporation (MCC) has inked a $60 million deal with Kenya. This agreement, known as the “Kenya Urban Mobility and Growth Threshold Program,” will support four mobility projects: the Integrated Transport Planning project, the First and Last Mile Connections project, the Detailed Land Use project, and the Bus Rapid Transit (BRT) project. If this feels like déjà vu, you might be recalling the time in March when the European Union (EU) and Kenya entered a Ksh 50 billion ($378 million) financing agreement to integrate zero-emission electric (BRT) buses into the public transport network in Nairobi, the capital city. Much like that agreement, this recent deal with the US will also finance the purchase of climate-friendly vehicles powered by electricity, hybrid, and biodiesel for the BRT network. This announcement comes on the heels of the African Climate Summit, recently held in Nairobi. During the week-long summit, Kenyan President William Ruto showcased electric vehicles by driving an electric car, accompanied by an all-electric fleet for his motorcade consisting of electric motorcycles from local electric mobility startups. Kenya is going green fast. The country is committed to transitioning fully to zero-emission vehicles by 2040. So it has been welcoming a lot of mobility startups that are providing motorcycles, cars, shuttles, and buses. This includes Roam, Ampersand, Spiro, KiriEVs, and others. There are also charging stations, and battery swap stations popping up across the country. Later in the year, the Kenyan government is set to publish an e-mobility policy that will set the framework for the development of the required infrastructure. Zoom out: Some other East African countries are taking this zero-emission challenge just as seriously as Kenya. Rwanda for instance has tax breaks for purchases of electric vehicles. However, per Ventures Africa, South Africa is the current leading market for EVs in the continent. 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. Markets Nigeria pushes for tech startups listing on NGX Image source: TechCabal The Nigerian government, through the Ministry of Communications, Innovation, and Digital Economy, plans to team up with the Nigerian Exchange Limited (NGX) to encourage startups to go public on the new NGX Technology Board. Sidebar: The NGX Technology Board is a board on the Nigerian Stock Exchange tailored for tech-based companies to list and raise capital from retail and institutional investors.Like the foreign board, National Association of Securities Dealers Automated Quotation (NASDAQ), The board was introduced months ago to give tech startups access to the exchange with less stringent requirements. The board also aims to replicate the conditions that attract Nigerian tech companies to foreign initial public offerings (IPOs) and, in doing so, provide entry and exit opportunities for local investors. However, local startups still prefer foreign exchanges. This preference is due to these exchanges offering access to foreign retail and institutional investors who often have a larger investment appetite. For example, startups like OPay and Flutterwave are seeking listings in foreign markets while primarily operating in Nigeria and other African markets. The Minister of Communications, Innovation, and Digital Economy, Bosun Tijani, called for more investments in these startups, saying Nigeria has been too cosy with oil, and it’s time to spice things up and boost productivity in other sectors. He stated that his ministry will work to make this happen by creating fintech-friendly regulations, facilitating access to funding, improving digital infrastructure, and supporting the export of tech products and services—all factors that will enhance startups’ scalability and profitability. The NGX has also promised to further soften listing rules and improve the board for startups. Unlock your startup potential Grow your networks, gain visibility, and secure funding for your early-stage tech startup. Apply for this year’s MEST Africa Challenge #pitchcompetition and unlock the next stage of your startup’s growth. Apply by 9th October 2023. Apply today! TC Insights Starlink’s African challenge Image source: TC Insights In January 2023, Starlink, the satellite internet service owned by Elon Musk’s SpaceX, commenced operations in Nigeria, marking a significant milestone as the first African country to receive the service. Since then, it has expanded its reach to four additional African nations, including Rwanda, Mozambique, Mauritius, and Sierra Leone, with plans to launch in nineteen more African countries by 2024. Mobile internet penetration in Africa remains at 43%, below the global average of 66%. Starlink’s emergence in Africa heralded promises of broader connectivity with download speeds up to 220Mbps. However, real-world performance is subject to variables such as latency and weather conditions. Recent Q2 data from Ookla, an internet and connectivity intelligence firm, paints a nuanced picture of Starlink’s global performance. Starlink has demonstrated promising download speeds in Africa, but its upload speeds present a mixed scenario. Starlink’s median upload speed of 13.72Mbps in Nigeria surpasses the combined average of 10.6Mbps from other providers, enhancing its value proposition. Conversely, in Rwanda, Starlink’s upload speed lags behind other ISPs, averaging just 6.88Mbps compared to 10.05Mbps. Ookla observes that Starlink’s upload speeds generally align with the company’s expectations, falling within the 5 to 20 Mbps range. This area remains a focal point for improvement if Starlink aims to solidify its presence in Africa.
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Access Bank fails to double profits in H1 2023, despite 52% growth
Access Bank’s profits grew 52% in the first half of 2023. But it failed to double its profit like its peers. Access Holdings Plc posted profits of ₦135 billion in the first half of 2023. That’s a 52% jump compared to the half year of 2022, according to the bank’s half-year financial statements. Compared to other tier-1 banks like First Bank, GTCO, and Zenith who doubled their profits in the same period, and tier-2 banks like Fidelity and Stanbic, Access Holdings results are not exactly impressive. GTCO recorded ₦280 billion in H1 2023 as profits from ₦77 billion in June 2022. First Bank recorded ₦187 billion from ₦56 billion in June 2022. Zenith Bank recorded ₦291 billion in H1 2023 as profits from ₦111 billion in June 2022. Fidelity recorded ₦61 billion from ₦23 billion in June 2022 while Stanbic recorded ₦67 billion from ₦30 billion in June 2022. Blessing or curse? Access Holdings has been in an acquisition spree for more than a year now, trying to deepen its reach across the continent. In May, the lender received regulatory approval from the Central Bank of Angola to proceed with the purchase of a majority stake in Finibanco Angola. In July, it acquired the sub-Saharan subsidiaries of Standard Chartered Bank for an undisclosed sum. On its balance sheet, those acquisitions seem like a curse and blessing. Between December 2022 and June 2023, both Access Holdings’ total assets and total liabilities have surged 39%. Its total assets is ₦20 trillion in June 2023, from ₦14 trillion in December 2022, less than six months. The liabilities are following closely behind, as it currently stands at ₦19 trillion in June 2023 from ₦13 trillion, six months ago. This has made the bank vulnerable to credit risk exposures. For instance, its loans and advances grew to ₦6.7 trillion in June 2023, as against ₦5.1 trillion recorded in December 2022. A note from the bank said the directors are confident in their ability to continue to control exposure to credit risk which can result from both its loans and advances portfolio and debt securities. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now! The Ghana problem But that is not all. Currently, the Ghanaian government is struggling with bankruptcy over failure to pay billions of dollars it owes to international creditors in December. Access Holdings is one of the government’s creditors as Ghana’s sovereign debt has impacted the bank’s position. “The fair value for Ghana sovereign debts in the books of the Access Holdings amounts to ₦615.18 billion (December 2022: ₦348.15 billion),” the note read in the lender’s financials. (You can read about this on page 79 or 81 of Access Bank’s financial statement.) Nonetheless, Access Bank has demonstrated growth in its corporate and investment banking drive which creates the bulk of its revenue, growing almost double to ₦469 billion in June 2023 from ₦266 billion in June 2022. Its net fee and commission income grew 59% to ₦88 billion in June 2023. Similarly, its net interest income was up 14% in H1 2023. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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A Somalia-based bootcamp is teaching code to young people in native languages
Based in Hargeisa, Fikrcamp was launched in Somalia and targeted Somali-speaking people. Although it has raised only $40,000, it has already arrived in Ethiopia to impart digital skills to Amharic-speaking students. Coding bootcamps in Africa are growing, offering intensive, short-term tech education. They empower aspiring developers with practical skills in programming, web development, and more. These programs help bridge the digital skills gap and support Africa’s growing tech ecosystem, opening doors to exciting career opportunities. Some of these programs take a different approach to offering coding training, such as targeting a specific group of people. That’s the case of Fikrcamp’s bootcamp, a custom program designed to meet the unique needs of young people who speak Somali as they embark on their journey into the digital economy. TechCabal had a chat with Ridwan Tukale, co-founder and director of product and operations at Fikrcamp. Fikrcamp has raised $40,000 so far Launched in February 2021, Fikrcamp has made some strides in a relatively short time. The initial cohort onboarded 16 students, and from that group, 10 successfully graduated. A total of 186 students have participated over seven cohorts. Tukale said 117 students had secured employment through internships or full-time positions. So far, Fikrcamp has raised $40,000 in funding, with a total revenue of $36,800. These funds provide an eight-month runway for the organisation. Fikrcamp aims to reach 500 Somali-speaking and 7,500 Amharic-speaking students in Ethiopia within three years. “After several successful years of empowering Somali-speaking youth with essential digital skills, we can proudly say that we’ve mastered the art of teaching. Our track record of helping students become job-ready speaks for itself,” Tukale told TechCabal. “We are excited to take our proven model to Ethiopia and replicate our success there. Our goal is to scale our operations, increase student enrollments, and continue significantly impacting Africa’s tech education landscape.” Fikrcamp charges tuition fees to cover instruction, materials, and resources. It further provides scholarships and financial aid, funded by the bootcamp or partners, based on need or merit. Employer partnerships often lead to tuition coverage for employees or sponsorships for skilled candidates. The bootcamp generates revenue through customised corporate training programs for businesses and organisations. How does Fikrcamp Bootcamp address the unique challenges and opportunities Somali-speaking youth face in their journey to enter the digital economy? RT: Fikrcamp understands the local context and the specific challenges that Somali-speaking youth encounter. Offering courses in the Somali language ensures that the content is accessible and culturally relevant, making it easier for students to grasp complex concepts. With the expansion into Ethiopia and the introduction of courses in Amharic, Fikrcamp ensures that its model is adaptable to different regions and languages, further extending its impact. Could you elaborate on the strategies and teaching methods Fikrcamp Bootcamp employs to ensure student skill mastery and how these methods contribute to their success in the digital space? RT: Fikrcamp places a strong emphasis on project-based learning. Students work on real-world projects throughout the bootcamp, allowing them to apply the skills they learn in practical scenarios. This hands-on experience reinforces their understanding and builds a portfolio of work that demonstrates their abilities to potential employers. In addition to technical skills, Fikrcamp recognises the importance of soft skills. Students receive training in communication, problem-solving, and critical thinking, which are essential for success in the digital space. As Fikrcamp Bootcamp expands its reach to Amharic-speaking audiences in Ethiopia, how does the program adapt to a new region’s cultural and linguistic nuances while maintaining its core mission and effectiveness? RT: Expanding into new regions with different cultural and linguistic nuances is complex, but Fikrcamp Bootcamp is committed to maintaining its core mission and effectiveness while adapting to these changes. Fikrcamp recognises the importance of cultural sensitivity and respect for local customs and values. Before launching in a new region, the team conducts thorough research and collaborates with local experts to understand the cultural nuances. This ensures the program is culturally relevant and respectful of the local context. One of our partners is from Addis Ababa is based there, and has facilitated the most market research. In a rapidly evolving tech landscape, how does Fikrcamp Bootcamp ensure that the digital skills it imparts remain relevant and up to date for its graduates, considering the constantly changing demands of the tech job market? RT: Fikrcamp conducts regular and systematic reviews of its curriculum. This includes ongoing evaluations of industry trends, emerging technologies, and job market demands. This proactive approach ensures the curriculum stays aligned with the evolving tech landscape. We also maintain strong partnerships with employers in the tech sector. This enables the bootcamp to gain insights into the specific skills that employers are seeking. It also provides opportunities for internships and job placements for graduates. Besides skill acquisition, how does Fikrcamp Bootcamp foster a sense of empowerment and agency among its students, enabling them to contribute to the digital economy and drive positive change within their communities? RT: Fikrcamp encourages entrepreneurial thinking and supports students interested in starting tech-related businesses. This empowers students to create job opportunities and become leaders in the digital economy. Can you provide examples of success stories or real-world impact following Fikrcamp Bootcamp’s initiatives, showcasing how its graduates have leveraged their skills to create meaningful change or establish themselves in the competitive tech industry? RT: Fikrcamp’s commitment to job placement support has resulted in many graduates securing positions with local and international tech companies. Their success in landing these roles demonstrates the effectiveness of the bootcamp in preparing job-ready professionals. The students from our 7 cohorts so far have a rate of 63% of employment after graduation. “At Fikrcamp, our commitment is unwavering. We believe in the transformative power of education and the incredible potential of Somali-speaking youth. Our mission is to provide them with the digital skills and opportunities they need to thrive in a rapidly evolving world. Every day, we are inspired by our students’ dedication and resilience and dedicated to their success,” Abdulladif Roble, co-founder, director & lead
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New SASSA SRD contact channels for quick help
Accessing support from the South African Social Security Agency (SASSA) through the Social Relief of Distress (SRD) program is essential for many individuals and families in need. SASSA has established multiple channels to provide assistance efficiently and effectively. In this article, we will explore the different ways you can contact SRD SASSA for help. 1. Contact Center One of the most direct methods to reach SRD SASSA is by calling their contact centre. They have dedicated hotlines where you can speak to a customer service representative who can guide you through the application process, answer questions, and provide assistance tailored to your needs. Reach them via: 080060 10 11 011 241 8320 015 291 7509 051 410 8339 2. Online portal/Email SRD SASSA has an online portal that allows applicants to apply for relief electronically. This portal is user-friendly and can be accessed from a computer or mobile device. It provides points to submit complaints and more. You can also email them via GrantsEnquiriesGP@sassa.gov.za. 3. Local SASSA offices If you prefer face-to-face assistance, you can visit your local SASSA office. They have trained staff who can help you with your SRD application or address any issues you may be facing. These offices include: South African Social Security Agency headquarters Physical location: SASSA House, 501 Prodinsa Building along Cnr Steve Biko and Pretorius Streets, Pretoria. Read more. 359 Pretorius St, Pretoria Central, Pretoria, 0001, South Africa Read more: Nafcoc Supplying Centre, 20 Buitenkant St, Soshanguve, Pretoria, 0152, South Africa 4. Government websites The South African government websites, such as the official SASSA website, are valuable sources of information. You can find updates, guidelines, and frequently asked questions related to the SRD program. 5. Find SASSA SRD on social media SASSA has a social media presence on platforms like X. Following their official accounts can keep you informed about news, application deadlines, and any changes in the SRD program. You can find them on X @OfficialSASSA. Final thoughts New SASSA SRD contact channels for help SRD SASSA offers a range of channels to contact them for assistance, catering to different preferences and needs. Whether you choose to call their contact centre, use the online portal, or visit local offices, it’s important to stay informed about the latest updates and guidelines to access the support you need through the SRD program.
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Even the most popular femtech apps are still leaving African women behind
Femtech apps are popular with young women in Africa but the solutions they provide exclude some of those who need them the most. Twenty-year-old *Salamatu has a small jotter in her bedroom where she keeps track of her menstrual cycle. While she has a period tracking app installed on her phone, she doesn’t always have data to access it. Her monthly data budget is ₦2,000 ($2) and she spends the bulk of it on WhatsApp bundles to keep up with her school department’s group chat. *Salamatu is sexually active, and it is very important that the manual calculation she does is correct as it’s typically the only form of contraception that she uses. Since the 2010s, multiple femtech apps and platforms have launched, helping millions of women across the world learn about their sexual and reproductive health. Sadly, it excludes some of those who need it the most. For women outside the western world, especially in rural communities who aren’t literate and cannot afford internet subscriptions, the solutions that femtechs like Flo provide are out of reach. This demands investments into more inclusive solutions that are tailored to marginalised women. African femtechs are providing solutions for their communities G4G, which was founded by a group of health education students, is a small, online sexual health community that is working to reach women through WhatsApp and SMS for those without internet access. One of the conveners, Hafsat Usman, shared that they have WhatsApp groups and an SMS list where they share information about sexual health with young women like *Salamatu including how to properly track your menstrual cycles and how to properly use different forms of contraception, among other things. The rate of unintended pregnancies in sub-Saharan Africa is the highest in the world, with one of the leading causes being a lack of adequate knowledge about contraceptives. “For a lot of these women, we’re the only place they get sexual health information from. They’re not digitally literate enough to search for answers online and can’t afford to pay for [medical] consultations. We have a lot of women reaching out to ask questions or for help regarding certain situations either on WhatsApp or via SMS, and we do our best to respond or connect them with other health professionals in some cases,” Usman shared. Beyond providing information, the G4G group leverages their online community to raise money for young women who can’t afford sanitary products, contraception, or treatment for sexual and reproductive health issues. In many African countries, teaching young girls about their sexual and reproductive health is considered taboo, making the accessibility of female-centred health tech solutions critical. The information that it provides empowers women to make decisions about their health and bodies, something that has been historically denied them. According to Usman, they sometimes converse with women in local Nigerian languages and via audio to ensure that they reach the women in ways and languages they most understand. “Sometimes, even when they have apps like Flo, they can’t read clearly or fully understand because it’s too complicated. We break it down for them in the vocabulary they comprehend better because we always understand things better when we use our language,” she said. Anosele Kotu is the founder of Femconnect, a South African femtech company that provides online information about sexual and reproductive health to young girls. According to Kotu, one of the reasons why she started Femconnect was because she felt like the services the American or European apps provided were limited and not targeted at her as a woman living in South Africa. “Sometimes they used terminologies that I didn’t even understand or could relate to, and while it sounds inconsequential, it makes a great deal of a difference in how young girls approach learning about sexual health. Information about your body and how it works becomes something you just scan through and hope to remember, rather than something you’re interested in or fascinated with, just because it sounds too complex and not relatable,” she shared. Beyond simplifying information, femtechs need to be tailored towards providing solutions to the most pressing need of its target demographic and Femconnect does that. There are about seven million girls in South Africa who miss school every month due to period poverty. Femconnect collects data on girls who need help with sanitary products and matches them with donors: people who are willing to pay for their sanitary product needs long-term. The challenge of building an African femtech If healthtech founders experience difficulties with accessing funding, African femtech founders have it even worse. According to Kemi Olawoye, the founder of Nigerian femtech Babymigo, very few investors are interested in putting their money into femtech because it’s a niche market. “Investors want to know how you’ll bring in bigger numbers for them and so they favour larger markets. As an African femtech founder, this really affects what you can do and how many women you can reach, which can be disheartening because women really need these solutions and the femtech market does have the potential to generate profit in the long-term,” she shared. The global femtech space is projected to be worth $1 trillion by 2027 and Africa has the potential to contribute immensely to that if local founders are supported and funded. Not only will investment into the African femtech space yield profit for investors, but it will also improve the conditions for more sustainable growth and innovation on the continent. Women make up over 50% of the population and improving health outcomes for them means improved outcomes for the rest of society. *Names have been changed to preserve anonymity. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Latest on using the KPLC self service 2023
Kenya Power, the leading electricity distributor in Kenya’s Self-Service Portal (KPLC), offers a range of services, from registering your account to paying bills and tracking your consumption. In this article, we will walk you through the essential steps to make the most of this portal. Registration for the KPLC self-service for landlords To access the KPLC Self-Service Portal, you first need to register. Follow these steps: 1. Visit the official Kenya Power website (www.kplc.co.ke). 2. Click on the “Self-Service” tab, which will redirect you to the Self-Service Portal. 3. Select “Register” to initiate the registration process. 4. Fill in your details, including your account number, recognised ID, a valid email address and phone number, and a password. 5. Agree to the terms and conditions, and then click “Register.” 6. You will receive a verification email/SMS; enter the code to confirm your registration. Tenant registration for the KPLC self-service If you’re a tenant, you can register as well. Tenant registration is essential for proper billing and account management. Follow these steps: 1. During registration, click on “Tenant Registration.” 2. Enter your landlord’s account number, your landlord’s phone number, and the meter number. 3. Verify the details and click “Submit.” 4. Your tenant registration will be confirmed once it’s approved by Kenya Power. Login to Kenya Power portal Once you’re registered, you can log in to the KPLC Self-Service Portal using your email/phone number and password. This portal offers a secure and convenient way to manage your electricity account from the comfort of your home or office. List of services on the KPLC self-service portal The KPLC Self-Service Portal offers a comprehensive range of services to cater to your electricity-related needs. Here is a list of some key services available: 1. Bill payment: Easily pay your electricity bills online using various payment options, including M-Pesa, Airtel Money, Equitel, or debit/credit cards. 2. Token purchase: Purchase prepaid electricity tokens directly from the portal. You can also check your token purchase history. 3. Bill history: Access your billing history to track your monthly electricity consumption and expenditure. 4. Statement request: Request and download your account statement for tax or record-keeping purposes. 5. Change of contacts: Update your contact details, such as email addresses and phone numbers, to ensure you receive timely notifications and updates from Kenya Power. 6. Report a fault: Report any electricity-related faults or outages directly through the portal for prompt assistance. 7. Application for new connection: Apply for a new electricity connection conveniently without visiting a Kenya Power office. 8. Meter reading: Submit your meter readings online, helping ensure accurate billing. Kenya Power Self-Service App In addition to the web portal, Kenya Power also offers a mobile app for added convenience. The Kenya Power Self-Service App is available for both Android and iOS devices. Here are some benefits of using the app: 1. Accessibility: Access your electricity account anytime, anywhere, from your smartphone or tablet. 2. Bill payments: Make quick and secure bill payments using various mobile payment options. 3. Token Purchase: Purchase prepaid tokens on the go and get notifications on your mobile device. 4. Notifications: Receive real-time alerts and notifications regarding your account and any service disruptions. 5. Fault reporting: Easily report power faults and outages directly through the app. Final thoughts The Kenya Power Self-Service Portal and the accompanying mobile app have transformed the way customers interact with their electricity accounts. These platforms offer a seamless and convenient experience, allowing users to manage their electricity consumption, pay bills, and access various services with ease. Registering on the portal and utilising the mobile app can simplify your relationship with Kenya Power while ensuring that you stay in control of your electricity needs.
Read MoreMultiChoice share price has plunged by almost 50% in the last six months
In the last six months, MultiChoice’s share price has plunged by 49%, wiping R32 billion (~$23 million) in shareholder value. On March 6, 2023, MultiChoice’s stock was trading at R147. As the Johannesburg Stock Exchange (JSE) closed on September 21, the pan-African broadcaster’s share price was trading at R74—a 49% decline. The following timeline provides insights into the significant events that may have driven the company’s share price down in the last six months. March On March 6, MultiChoice, NBCUniversal, and Sky announced a partnership that would see the relaunch of a new version of Showmax, termed “ShowMax 2.0,” which will be powered by NBCUniversal’s Peacock technology platform. The announcement indicates that the partnership will be a holding group, with 70% owned by MultiChoice and 30% by NBCUniversal. In Nigeria, one of MultiChoice’s major markets, NBCUniversal will hold an indirect 23.7% stake in the local subsidiary. Following the announcement, MultiChoice’s share price jumped to R147, its peak since the company started trading on the JSE in February 2019. However, the excitement lasts only eight days. On March 14, the company stated that load-shedding and a weak economy have significantly reduced activity in its SA business and that its earnings will miss projections. On the same day, the broadcaster’s share price plummets to R120, a 14% decline from the previous day’s trading value. April On April 4, MultiChoice announced plans to launch a technology division headed by the newly appointed group chief technology officer, Nyiko Shiburi. The new division will house the broadcast technology division, enterprise business systems, group digital, DStv Streaming technology, and project management office. “We are repositioning our technology area to lead our next growth phase and to deliver on our vision of becoming the technology platform of choice for African households. We have consolidated everything related to technology, engineering, and technical divisions into a technology hub,” said MultiChoice Group CEO Calvo Mawela. Following the announcement, MultiChoice’s share price dropped from R125 to R112 over the course of 10 days, a 10% plummet. May Between April 4 and May 29, MultiChoice’s share price dropped by 17%. On May 29, the company announced that it is entering the payments space by launching a new integrated payments platform in partnership with Rapyd, a B2B payment processing platform, and General Catalyst, a venture capital firm that provides early-stage and growth equity investments. The platform, to be housed under an entity called “Moment,” will aim to offer payment infrastructure for businesses across Africa to help them collect and make payments easier, quicker, and more affordable in any manner that their buyers or suppliers prefer. Additionally, the platform will offer options for consumers to spend and save money more wisely to “transform the African payments landscape by making digital payments more accessible and reliable for domestic, cross-border and global payments.” The announcement failed to boost the share price. The next day, May 30, the share price traded at R96, its lowest since September 2020. June On June 5, MultiChoice stated that its annual results would show substantial drops in earnings and headline earnings per share despite solid subscriber growth and its rest of Africa business returning to profitability. The company blames forex losses for the decline as the rand and naira struggle against the dollar. However, shareholders were unconvinced, and the company’s share price dropped by 3%. On June 14, MultiChoice announced its end-of-year financial results for 31 March 2023. Despite showing strong topline performance, the company shares that it will continue investing in “Showmax 2.0” and withholding dividends. “In view of the challenging South African market, the uncertain currency outlook, the funding needs of the Rest of Africa business and the investment required to drive Showmax to become the leading streaming platform on the continent, no dividend has been declared for FY23,” the company stated. The company also announced that it lost $108 million of its investment in Nigeria betting company KingMakers. July On July 4, JP Morgan Chase & Co. downgraded the pan-African broadcaster’s stock rating. The brokerage firm adjusts MultiChoice’s ratings downwards from “neutral” to “underweight.” An “underweight” rating means JP Morgan expects the company to underperform based on the average total return of stocks in its coverage universe over the next 6 to 12 months. The company was downgraded as J.P. Morgan believes it intends to “throw considerably more money at Showmax than what the market expects,” according to reporting by Reuters. As a result of the downgrade, MultiChoice plummeted by 12% on the same day, ending the day trading at R82 from the previous day’s R94. It somewhat recovers the next day to close at R88 and, despite jittery movement in the course of the month, close at R88. August Over the course of August, Multichoice’s share price lost a further 12%. Having opened the month at R89, it closes at R78 on the market closes on August 31. During that period, the company announced that it had pulled its DStv service out of its Malawi market following pressure from the regulators to freeze price hikes. September As of September, the company has already lost 4% of its share price value despite several leadership changes, including the appointment of Marc Jury as interim CEO of Showmax, Rendani Ramovha as SuperSport CEO, and Keabetswe Modimoeng as group executive of corporate affairs and stakeholder relations. Additionally, the board of directors chairperson stepped down due to shareholder pressure. “Given shareholder preference for an independent chair, it was always envisaged that Mr Patel would step down at the appropriate time once a suitable replacement as independent chair had been identified,” MultiChoice said in a statement. Also in September, public broadcaster SABC dragged MultiChoice to the Competition Commission over disagreements on licensing rights for the ongoing rugby World Cup. Over the last half a year, MultiChoice’s shareholders have lost a cumulative R32 billion (~$23 million) in their investment in the pan-African broadcasting giant.
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TechCabal Daily-Can Francis Dufay rescue Jumia?
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy Friday! …and cheers to the weekend. This week flew by really quickly, didn’t it? Well, it must have for the 12 African startups that were selected to head to Silicon Valley, California to complete the second phase of the Microsoft-backed FAST accelerator program. Their in-person training where they will learn how to use AI to scale their businesses starts tomorrow. You can find out which startups are participating here. In today’s edition No one is buying NFTs anymore East Africa records 51 private equity exits in a decade How will Francis Dufay rescue Jumia? Vodacom and Maziv $698 million deal gets a date in court Funding tracker The World Wide Web3 Event: Moonshot Conference Opportunities NFTs Most NFT collections now have a value of zero Ethereum Gif source: Tenor NFTs are now almost worthless. NFTs, once admired as darlings, are now out of favour. According to an analysis conducted by crypto gambling website DappGambl, 95% of NFT collections are now almost worthless. The gambling platform reviewed about 69,795 NFT collections and found that they had a market capitalisation of zero Ethereum. While some NFTs still hold their value, only 21% of the collections studied by DappGambl had 100% ownership. Findings from the analysis also estimate that less than 1% of NFTs are worth $6,000 or more. Why the drop in value? Due to the crypto downturn in 2022, values of most NFTs nosedived leaving most investors in red. Investors who had previously bought digital collectables at high values couldn’t sell at a loss. However, DappGambl said that NFT projects that lacked clear use cases, compelling narratives, or genuine artistic value didn’t attract attention and sales. Sidebar: Shortly after one year that YouTuber, Logan Paul purchased the Bumblebee NFT for $623,000, the NFTs are now worth a meagre $10. Zoom out: NFTs introduced the world to a new world of owning and monetising digital assets, however, the latest findings by DappGambl remind the world of the volatility of the NFT market. 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. Markets East Africa records 51 private equity exits in a decade Image source: Pixbay East Africa’s private equity market has experienced significant growth in recent years. How so? Per the East Africa Venture Capital Association (EAVCA), a total of 478 deals worth $8.6 billion closed over the past decade. The region also recorded a jump in exit activity in FY 2022, marking the highest numbers in a decade. Furthermore, there have been 51 private equity exits out of 427 investments in the region. The financial services sector recorded 14 exits, while the healthcare and energy sectors had nine and seven exits, respectively. Among the countries, Kenya led with 36 exits, followed by Uganda with eight, and Rwanda with three. Tanzania and Ethiopia reported two and one exit, respectively. However, these figures may not capture all exits, as some are not officially reported or disclosed. The data also doesn’t account for investments exited via forced liquidation. Looking ahead, it’s expected that 2023 will have even more exits, and these are important for fund managers who want more money from organisations that support development (development finance institutions). Zoom out: Private equity investors mainly exit through three avenues: selling to trade players, secondary buyouts, and management buyouts (MBOs). The surge in exits is a promising sign for the coming five years as investments made in the past seven years reach maturity, and fund cycles conclude. E-commerce Francis Dufay’s urgent plans to rescue Jumia Image source: TechCabal Since Jumia set up shop on the continent, it has not been profitable. According to the company’s most recent earnings report, it lost $167 for every $100 it earned. In the first half of 2023, it earned $94.8 million but lost $63.7 million. The e-commerce platform has also lost nearly a third of its shoppers. A fall from grace? Launched in 2012, Jumia started operations from Nigeria and has launched into 10 other countries on the continent. Jumia suffered a decline in growth from its single biggest market — Nigeria — after the country’s unstable currency exchange system affected Jumia and other businesses alike. Jumia’s woes were not only in Nigeria; across all of Jumia’s markets the average inflation rate is 14%, and currency depreciation in nine of its ten markets shows the difficulty of its goal of moving towards profitability. A long journey to profitability Jumia recently turned its focus to rural markets in Nigeria in a bid to ensure profitability. Over the years, Jumia has consistently splurged on marketing and advertising costs as it continues to position itself in the African market. However, in a move to ensure profitability the company cut down its advertising spend by 40% early this year. Since Francis Dufay took the helm at Jumia, he has implemented painful cuts across the company, including laying off 900 (20%) of employees. Also, 60% of Jumia’s top management team who work from the UAE were mandated to work from the continent to save costs. Dufay also earns less than previous CEOs. Dufay’s implementation Jumia’s operating losses are down 60% this year, especially advertising spend, which declined 71.7%, compared to 2022. Zoom out: While Dufay’s reforms of cutting costs are yielding results, the company still has a chance in the industry because e-commerce isn’t going anywhere, and Jumia is already positioned as a leader in the space. Telecom Vodacom and Maziv $698 million deal gets a date in court Image source: Tenor South Africa’s Competition Tribunal has scheduled May 20, 2024, as the date for the final hearing regarding a proposed transaction between Vodacom and Vumatel’s parent company, Maziv. What transaction? The Vodacom and Maziv deal was first announced in December 2021. Under the terms of the deal, Vodacom would
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East Africa records 51 private equity exits in a decade
East Africa also reported 478 private equity deals and closed $8.6 billion in private equity over the same period. In the last 10 years, there have been 51 private equity exits out of 427 investments (and 478 private equity deals worth $8.6 billion) in the East African market, per the East Africa Venture Capital Association (EAVCA). The region recorded a jump in exit activity during FY 2022, marking the highest numbers in a decade. The financial services sector saw 14 exits, followed by healthcare and energy, with nine and seven exits, respectively. Kenya led the pack with 36 exits per country, followed by Uganda at eight and Rwanda with three. Tanzania and Ethiopia recorded two and one exit, respectively. Private equity exits in East Africa. Image source, EAVCA READ MORE: Understanding key concepts in private equity However, these are the reported numbers, with a high probability that the exits could be higher as some are not officially reported or disclosed. “Whilst the data suggests only 51 exits over the last decade, anecdotal evidence suggests a higher number on account of investments that are exited to founders and management and not disclosed,” EAVCA said in a statement. “The data also does not capture investments that are exited via forced liquidation.” Projections show that 2023 will surpass this performance. This surge in exits is a promising sign for the coming five years as investments made in the past seven years reach maturity, and fund cycles conclude. These exits are becoming crucial for first-time fund managers seeking follow-on funds from predominantly development finance institutions (DFI)-focused limited partners in the region. READ MORE: Next Wave: Should VC be PE? EACVA clarified: “Excluding outliers, the average holding period in the industry has been [about] 7 years for exits recorded between FY 2014 and H1 2023, with a general reducing trend up until the COVID period. These are remarkable numbers, given the turbulent macro, geopolitical and weather-related events in the region during the period under review and their impact on profitability, which then influences valuation.” How private equity investors have been exiting the market Per the EAVCA report, private equity investors mainly exit through three avenues: selling to trade players, secondary buyouts, and management buyouts (MBOs). Only one IPO exit occurred during the decade. Often, sales to trade players, mainly from Europe and Asia, have been the most popular exit route. However, the exit landscape is evolving, with secondary buyouts surpassing trade player sales and buyers expanding to include pan-African and regional entities. “The increase in secondary buyouts is recent and driven by several factors including a loosening of restrictions on secondary buyouts and an increase in the number of funds that will now execute majority transactions, and furthermore, secondary capital only transactions.” READ MORE: Private equity investors predict entrepreneurial boom in Africa The complexity of private equity exits Private equity exits are naturally complex, often marked by multiple factors. The complexities stem from various exit options, including trade sales, IPOs, and secondary buyouts, each demanding a unique strategy. Timing is key, as choosing the optimal moment to exit involves a delicate balance between maximising returns and minimising risks. “Private equity exits are hugely topical in the private equity community in East Africa both for their complexity and somewhat elusive nature as evidenced by the contrast in publicly disclosed private equity primary (money-in) transactions as compared to private equity exits,” EAVCA added in a report. Financial engineering, such as leveraged buyouts, adds another layer of complexity, which calls for careful management during exits. That’s not all, as regulatory compliance and due diligence requirements influence exit strategies, particularly in cases involving public offerings. Other factors that make private exits difficult include negotiating terms, tax considerations, managing leadership transitions, and aligning with market conditions. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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