👨🏿🚀TechCabal Daily – Patricia nabs Nigerian politician for $760,000 theft
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy salary week X is bringing back headlines less than two months after Chief Twit Elon Musk removed them to “greatly improve aesthetics”. Last week, Musk announced that headlines will come back to X soon. This time though, the headlines will be in the top of the link preview instead of the bottom. Musk didn’t say why the previews are coming back, but it could have something to do with this intelligible tweet he made about OpenAI. Chief Twit Elon Musk is steadily showing us that CEOs make mistakes too, and regularly—like you on an impromptu Meet call—don’t know what they’re talking about either. In today’s edition Patricia nabs Nigerian politician for $760,000 theft Quick Fire with Bemi Idowu Here’s Nigeria’s apex bank plans to solve inflation Egypt to kick-start e-KYC in 2024 Fawry concludes security checks The World Wide Web3 Opportunities Cybercrime Patricia nabs Nigerian politician for $760,000 theft GIF source: Tenor Four days after its repayment plan was due to start, fintech Patricia identified a Nigerian politician, William Bonse, as a culprit in its 2022 $2 million hack. According to the Nigerian Police Force (NPF), Bonse, who was a gubernatorial candidate in Nigeria’s 2023 elections, reportedly diverted ₦607 million ($760,000) from the fintech’s account into his through a cryptocurrency wallet. Bonse, who is allegedly working with others, had been apprehended by the police who say the politician has “registered his involvement” in the hack. ICYMI: In May, Patricia was revealed to have suffered a hack in 2022 which cost it $2 million in customer funds. The hack led to several customers being unable to withdraw funds. Since then, Patricia has tried several measures to reassure customers including relaunching its app, offering to turn customer assets into a new Patricia Token, raising funds to repay customers, and even offering customers shares in exchange for their stuck funds. While, in a May disclosure, the company said it had pinpointed a single culprit, it declined to disclose any details regarding the individual. Bonsu is likely the culprit in this scenario. Have the funds been recovered? That’s not clear yet. In a press release, CEO Hanu Fejiro said recovery of the amount, while incomplete, would “go a long way to soothe Patricia users.” So far, the company claims it began refunding customers on November 20 as planned, but several customers have declined receiving any payment. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Features Quick Fire with Bemi Idowu Olugbeminiyi Idowu is the founder and managing director of Talking Drum Communications, a public relations and communications consultancy that supports companies innovating in Africa to shape perceptions and get more effective publicity for the work they are doing. He is an African Tech PR specialist, with extensive experience in leading and delivering successful media campaigns for a wide range of companies – from established global players to Africa-focussed start-ups. Olugbeminiyi Idowu What drew you to tech PR specifically? I’ve always been interested in seemingly complex things and the challenge of communicating the value of these things in a clear and meaningful way and this is a skillset that lends itself well to working in technology PR. My technology PR journey started with semiconductors, micro-components and data centres and it was only later that I started working on Software as a Service products and then startups. How do PR strategies differ for global players versus Africa-focused start-ups? PR at its core is basically the same everywhere. It is all about sharing and managing information to shape the perception of an entity. What differs is what the entity is trying to achieve and the context they are operating. For example, a health tech startup in Europe will typically be trying to tell a very different story from one operating in Africa and success will most likely look different. Our job is to understand what success looks like and do what we can to support our clients in making it happen. One major issue that impacts how PR is done in Africa is the depth of media platforms we currently have. For example, the African tech media landscape is still relatively young and everything falls under the “tech” umbrella. In other parts of the world, you get to work with specialist publications that focus entirely on Information Technology, security, fintech etc. This means you get to tell deeper stories and explore a wider range of narratives for campaigns. What’s the most challenging aspect of your job? I can be quite impatient so this means I am always in a hurry. Dealing with people who don’t have the same sense of urgency can be very frustrating. How do you measure the success of a media campaign? At Talking Drum, we are very particular about understanding what our clients are hoping to achieve with PR and being clear about whether or not PR is the most effective way to achieve that goal. For example, we get some clients talking about using a press release to reach a download target for their app. I’m always quick to say PR can support that goal but it may not be the most effective. We typically see the most impact and ROI from our work when it comes to attracting talent, securing investment, establishing a narrative, brand leadership and stuff like that. These are all results that you can effectively measure and directly link to public relations activities. What’s a common misconception about tech PR? The biggest misconception is that it is just about distributing press releases. I understand where this comes from as press releases are an essential tool in the PR tool kit but there is so much more. There are so many strategies and storytelling tactics that come with PR, as well as different services that a PR professional or business can offer to
Read MoreUSSD remains Africa’s most popular payment channel despite growing alternatives
Despite the growth of many payment channels such as apps and QR codes, Africans continue to use USSD more for making payments across banking and mobile money products. USSD-based transactions were used for mobile money and cross-domain transactions due to their straightforward and user-friendly interface that does not require a smartphone or internet connectivity. These USSD channels, which contributed 70% of instant payment channels as of June 2023, have been key in facilitating transactions that go beyond traditional mobile money services, including transactions between different financial institutions. In Ghana and Kenya, mobile money systems, particularly those using offline channels like USSD, are popular and supported by customers over card-based systems. This strong preference aligns with the percentage of people with mobile money accounts at 60% in Ghana and 69% in Kenya. However, while USSD is popular, it has been cited as a barrier to ease of use in payments. “Complex USSD menus and failed transactions are particularly detrimental to use,” said AfricaNenda, a digital payment strategy organisation in its inclusive instant payment systems (IIPS) report. Cross-domain instant payment systems facilitate interoperability between banks and non-banks, enabling transactions across both bank and mobile money accounts. While app channels follow USSD in terms of popularity, they introduce friction points like access to smartphones and internet connectivity, the adoption of which stands at 51% and 43.2% respectively. There is a growing acceptance of quick response (QR) codes as another channel. Cross-domain and bank IPS offer the broadest array of channels, whereas mobile money instant payments typically favour agent, USSD, and app channels. According to AfricanNenda, which released an instant payments systems (IPS) report in November 2023, this diversity shows the evolving financial services ecosystem in Africa. Per AfricaNenda, electronic money (e-money) instruments are also popular, with widespread support from mobile money and cross-domain instant payment systems. Cross-domain systems also use commercial money instruments like credit and debit electronic funds transfer (EFT), while bank IPS focus on credit EFT, with debit EFT as a secondary instrument. This diversity underscores the varied payment methods in use across different payment systems. “For an IPS to be a cross-domain system, it must have a switching capacity between commercial money instruments (such as debit electronic funds transfer (EFT), credit EFT, and domestic card instruments) and e-money instruments. Operators use one of two approaches to achieve a cross-domain IPS,” said AfricaNenda in the report. IIPS is important because the demand for instant digital payments is growing. In 2021, 50% of Sub-Saharan African adults used digital payments, up from 34% in 2017.
Read MoreFormer Google project CSquared seeks to connect Africa with $25 million raise
Lanre Kolade, CEO of CSquared, speaks to TechCabal about the company’s ambition to foster connectivity in Africa following its $25 million fundraising. CSquared, the pan-African technology infrastructure company which started as a Google project, has announced a $25 million capital injection. The equity funding was led by the Convergence Partners Digital Infrastructure Fund (CPDIF), International Finance Corporation (IFC), and the International Development Association’s (IDA) Private Sector Window Blended Finance Facility. Through the new funding, CPDIF will assume Google’s equity stake in CSquared. Launched as a project within Google in 2011, CSquared builds open-access broadband infrastructure and makes them available to local Internet Service Providers (ISPs) and mobile network operators (MNOs). The company is currently present in six markets across the continent: Uganda, Ghana, Liberia, Kenya, the Democratic Republic of Congo, and Togo. According to research by the Africa Development Bank, Africa requires an estimated total of $135 billion annually to finance infrastructural development. This means that until this amount is reached, Africa will still face an infrastructure gap which will slow down its digital development growth. Lanre Kolade, CSquared CEO, spoke to TechCabal about how the funding will contribute towards the company’s pan-African ambitions. In this interview*, Kolade outlines CSquared’s mission for pan-African infrastructure development, how the company plans to traverse the continent’s polylithic regulatory landscape, and how the new ownership structure will contribute towards its mission. TechCabal: Please share more on CSquared and the company’s mission. Lanre Kolade: The company started as a project within Google in 2011 and metamorphosed into CSquared in 2017 when Google brought in three other shareholders: Convergence Partners, Mitsui, and the IFC. We build open-access digital infrastructure that enables the deployment of broadband networks. These networks are then shared by multiple customers who are mostly ISPs, mobile network operators and anybody with a valid licence within our footprint. When we say broadband-enabled infrastructure, it’s just a yardstick. We also have wireless infrastructure networks that we build and have plans plan to build edge data centres. So everything that is going to enable broadband penetration on the continent is what we’re going into. In Uganda for example, we have an open-access Wi-Fi network which ISPs have access to so they don’t have to build their own network. Our mission is to build a digitally connected Africa. CSquared just raised $25 million in equity financing. How will this contribute towards the company’s mission? LK: This equity investment will help us accelerate the execution of our vision in existing markets, and also to go into new ones. What is important to realise is that Africa is a very vast continent, and the infrastructure deficit is huge. So this investment for CSquared is part of a bigger target which is to raise $120 million. We see $25 million as a confirmation from our current equity partners that they believe in this project. The company is currently present in six markets, most of these being what can be referred to as “pre-emerging”. Was this a deliberate strategy and are there plans to pursue bigger markets like Nigeria, Egypt, South Africa, etc? LK: The playbook for CSquared is actually the entire continent. Our current choice of markets is because we felt there were infrastructure deficits in those markets. We started in Uganda and then went to Ghana, Liberia, Togo the DRC. So are we looking at markets on the basis of size but also being able to add immediate value to our customers. If you look at the example markets like Egypt and South Africa, our impact will be more of a consolidation of assets. In Nigeria, we already have some M&A opportunities identified. We are also looking at Egypt and South Africa where we are exploring synergies with power utility companies to foster long-distance connectivity to connect rural areas. So to reiterate, our plan is pan-Africa but because capital is limited, we have to plan and strategise our expansion. The plan is to first consolidate and expand our reach in the markets we are currently in and then go to markets where the infrastructure is actually very deficient to make an impact. Pan-African expansion also comes with abiding by various regulatory requirements. How do you plan to achieve this as you scale across the continent? LK: From experience, I can say that a lot of the regulators and policymakers have understood the fact that if they don’t build this infrastructure within their localities, Africa will be digitally colonised. There is that realisation that our people are behind and the only way to leapfrog is to make infrastructure available. Some of these markets don’t even have the regulation that supports wholesale open access so we work with them in capacity building to get these frameworks built. There are cases where we partner with entities because commercially and economically, the investment wouldn’t be viable. Like in Liberia, we partnered with USAID to get grants to help us make that transaction a success. Remember, you don’t want to put infrastructure in the ground if it is not sustainable because it will just be a white elephant project. You want to be sustainable, you want it to add value to it in the form of economic and social impact. So I would say it’s becoming a bit easier with the red tape because all you have to explain the need for this infrastructure and why it reduces barriers of entry for competition and social services. In terms of your scaling roadmap, can you share more details on which markets you have sights on? LK: We will continue our consolidation in our existing markets. The DRC is a market that we got into about two years ago when we got our licence and we deployed infrastructure in Kinshasa. We are deploying infrastructure in five more metros within the country. We are also interested in stitching countries together; for example, enabling a customer to connect to somebody in the Gambia without having to go by the submarine cables. So those are the kinds of
Read MoreNigeria’s Central Bank unveils inflation template to guard against soaring prices
Yemi Cardoso, Nigeria’s Central Bank Governor, has unveiled a template to guard against soaring inflation that jumped for the tenth consecutive time in October 2023. The framework of the bank will ensure transparency, and maintain effective communication with the public regarding instances of price control and hikes, according to the apex bank’s chief. Cardoso made this announcement at the Chartered Institute of Bankers annual dinner on Friday in Lagos, as he addressed the public for the first time since his Senate confirmation. Having recently postponed the second crucial rate meeting since July, he stated that the Central Bank of Nigeria (CBN) had met its quota of rate meetings for the year 2023, even as inflation hit an 18-year high of 27% in October. KPMG predicted that Nigeria’s headline inflation will hit 30% by December 2023. Analysts have anticipated this meeting, hoping to make investment decisions following what they hear tonight. They also anticipated a rise in interest rates this month to help slow down inflation and protect banks from losing capital as inflation continues to rise. Cardoso did not state when the first rate hike meeting for 2023 will hold under his leadership. The governor also said that the bank had initiated foreign exchange frameworks to address the backlog of dollar demand that has weighed heavily on the naira. He said the payment of obligations will continue until they are completely cleared. The 66-year-old former Citibank executive directed that the banks minimum capital ratios be increased instead, in the hopes to meet the $1 trillion target set by the Federal Government. Despite acknowledging the importance of technology in the payment sector, Cardoso promised to checkmate the sector as some payment firms had been operating outside the activities approved for their licenses. The bank chief said that CBN has been mopping excess liquidity in the market via the introduction of Open Market Operation (OMO) bills. He also assured that the bank would no longer stray from its core mandate but work towards providing the right fiscal and monetary policies that would steer the nation forward.
Read MorePredicting potential winners of Nigeria’s emerging food delivery war
This article was contributed to TechCabal by Uche Aniche, co-founder of SSE Angel Network. In this post, I tried to predict the potential winners of Nigeria’s emerging food logistics space. I also lightly broached the conversation around Nigeria’s correct market sizing. Recently, Bolt, the Estonian ride-hailing company, announced it would be shutting down their food delivery operations in Nigeria. Some ecosystem leaders felt they were displaced by Chowdeck—a YC-backed startup in the space—founded by Femi Aluko a Paystack alumnus. I, on the other hand, thought it was the result of Nigeria’s recent economic challenges. Nigeria is currently grappling with the twin issues of acute currency depreciation and rising inflation. The ride-hailing space (where Bolt leads and mostly uses petrol-powered cars) has taken a big hit in the wake of the subsidy removal policy, which has led to high pump prices. Most of the food delivery services use petrol-powered motorbikes and bicycles. Glovo, Gokada (founded by the late Fahim Saleh) ACE Logistics and of course Chowdeck to mention just a few. I became aware of Chowdeck just before #StartupSouth8 (our annual conference) because they announced the launch of their operations in Port Harcourt on X (formerly Twitter). Subsequently, I started seeing their riders around the city and became interested in learning more about the company. I saw and read a series of Medium posts by Femi Aluko, the company’s founder. I found the thoughts interesting and even teased him on X. On my recent trip to Lagos for Zoholics (where we held a press conference to announce our community’s partnership with Zoho for Startups), I wanted something different from hotel food and it was a perfect opportunity to try Chowdeck’s service. I shared my experience in a post on X if you’d like to know how it was. 1643-1705From Order to Delivery900 Bucks delivery (Would have paid more – plus stress if I went myself) I read @chowdeck Founder’s Medium post and thought to give them a try. Congratulations pic.twitter.com/MJKVXa4BT6 — Uche #StartupSouth8 (@Havilah2) November 16, 2023 Meanwhile, I only learned about Glovo when Uche Anisiuba—a friend, an amazing animation entrepreneur, and a lecturer at the Pan Atlantic University—spoke so glowingly about them. I was surprised that there was another leader in that space. Surprisingly, on the other hand, he didn’t know Chowdeck, although he recalls seeing them and even had a faint idea of what their logo looks like. Then, on my way to the airport in Lagos, I was stunned by what I observed; I saw Glovo’s presence everywhere I turned. From Ikoyi to Anthony, from bikers going to deliver an order to riders fixing their bikes. Billboards also weren’t left out—many had 25% off meals from Chicken Republic screaming at you. I probably saw only two or three Chowdeck bikers on that route. Perhaps it’s particularly not their zone; but maybe it doesn’t matter, because Chowdeck got one more order and a customer who would probably continue to use it in Port Harcourt when necessary. The limits of myopic market sizing The airport in Port Harcourt is probably the third busiest airport in the country after Lagos and Abuja for obvious reasons. The airport is an international airport and Port Harcourt, aside from being the home of the hydrocarbon industry, could arguably be referred to as the capital of the South-South region. According to the Nigeria Bureau of Statistics, the top five airports in Nigeria in terms of the volume of passengers who passed through in the first half of 2018 were Lagos, Abuja, Port Harcourt, Kano, and Owerri. These five airports served over 89.39% of total passengers (6,707,195) in the first two quarters of 2018. Port Harcourt and Owerri combined served 10.6% of passengers. Additionally, Port Harcourt was the second-largest cargo destination in Nigeria in the same period. About ten (conservatively) different flights come into Port Harcourt daily from Lagos. If they conveyed an average of thirty passengers, this will translate to roughly 9,000 people who are possibly exposed to Glovo that won’t be able to use them in Port Harcourt and Ibadan (one of the other cities Chowdeck operates in). This is possibly why Uber lost its leadership position in Nigeria to Bolt. I remember the response I got in 2016 for asking Ebi Atawadi, then General Manager, West Africa at Uber, why she wasn’t looking to expand aggressively to other regions. It made me pray and search for another ride-hailing service to dethrone them. In 2018, Bolt launched in Owerri and then Port Harcourt following up with other cities like Enugu, Uyo, and Benin. Interestingly, I became the very first passenger to ride a Taxify (as they were called then) in Owerri. My visit in preparation for #StartupSouth4 coincided with their launch. I remember being called by the team to appreciate me for being their first rider only to run into the launch team at HotFM shortly before they left for Darling FM. They went on to partner with us for the conference that year. Bolt would go on to become a market leader in Nigeria ahead of Uber under the leadership of Uche Okafor— the famous Uche from Bolt. This experience and the story highlight the gross underestimation of the Nigerian market over what I believe is the limited understanding of our returnee founders and their foreign investors. I don’t see startups in the US dominating San Francisco/California claiming they have conquered the country and set eyes on international expansion. This is what’s currently happening in Africa, especially in Nigeria—the biggest economy with a population of over 200 million people. False equivalence, perhaps, especially when comparing GDPs but at least the full value of the market should be extracted in order to correct the warped narrative of the African market. I also don’t want to start the conversation of investors backing products that look like what they’re used to in their country forgetting Africa has fundamental challenges that spell opportunities and yet complain when their fantasies don’t pan out. This is why we
Read MoreVula wants to simplify fundraising for African startups. Here’s how.
This episode of Ask An Investor features Nicholas Rawhani, co-founder and CEO of fundraising platform Vula. He talks about how the platform is enabling fundraising for African startups and SMEs. Vula is a fundraising assistant that automates the fundraising process for founders. Users input their website URL and the AI-powered platform will craft an application for selected funding opportunities. Founded by Nicholas Rawhani and Alex Goff in 2022, Vula seeks to transform the fundraising process for the continent’s startups and SMEs at a time when raising funds is proving to be tough. In this episode of Ask An Investor, TechCabal talked to co-founder and CEO of Vula, Nicholas Rawhani, to get more details on how the platform works, what convenience it brings to the fundraising process, and what role platforms like Vula can play in boosting fundraising on the continent. TechCabal: Please share how Vula works. Nicholas Rawhani: Vula seeks to answer the question of how we can enable locally-owned African companies access to capital which will enable them to scale up. We spoke to more than 500 founders and realised that the process of applying for financing, whether it’s for a grant, pitching to VCs, or applying for a loan, had so much friction and headache. And it takes up so much time for founders that they stop being able to focus on running their business. So I (coming from a background of helping startups traverse through funding challenges) and my co-founder Alex (coming from this background of using big data to enable automation) started Vula. We realised that if we can start to parameterise the reality of companies and really get the information of companies to be a single source of truth, then we can train an AI for every company, and help that AI to basically be a relationship banker and investment banker for each and every company on the continent. Once it understands the company well enough, it can output what the best possible route for funding is and who can actually fund it. It also helps them apply for that funding. But on the other side of this funding gap are the financiers themselves. We had this assumption that development financial institutions, pan-African banks, and others would have sophisticated processes and systems for bringing in businesses and finding opportunities to finance them. But we found that that’s not the reality. So we realised that Vula needed to build for both sides of this funding gap. What makes this model amazing is that we can provide our startup and SME support tools for free to founders while making our revenues by helping these large financial institutions digitise their onboarding processes. How does Vula plan to catalyse investment into the continent? NR: In the USA there’s this concept called the Common Application where when you apply for university, you do one application, and it basically filters you out and pre-matches you to the universities that suit your profile. Vula brings that same convenience to founders. Searching for opportunities one by one, going through all these different applications, filling in the same questions, and getting the same documents, is all a schlep. We have this powerful platform that not only reduces this process but also helps them engage with financiers in the best way. We believe that by figuring out the best way to facilitate investment, we can 10x the amount of investment on the continent. What challenges have the Vula platform faced and how have you conquered them? NR: I’d say on the founder side, there haven’t really been challenges because we’re providing a free service that’s super futuristic to founders and, so far, they love it. I would say however that there is a bit of slowness which comes from the side of financial institutions. You can imagine how incredible the experience would be if you log in as a founder and immediately see all of the financing opportunities that lie before you. Historically in Africa, financial institutions have been financing very large corporations in mining , telecoms, and not really SMEs and startups. Our banks make a lot of their money just from transactional banking, but what they are starting to realise is that SME financing is extremely profitable. SME financing that takes place in Europe or in the US is the single most profitable sector of any banking segment, and our institutions are becoming more cognizant of that. So, in the short term, you’ve got banks who don’t really want to engage with SME financing that much, which slows our uptake, but then you have these really innovative banks and financial institutions who are playing the long game and seeing the value Vula adds. On the other hand, what opportunities are Vula looking to exploit in the funding facilitation market? NR: We have a very clear three-step plan. The first step is to enable this next generation of digital tooling for financial institutions and once we hit a critical mass of those and it basically becomes a marketplace, the amount of investment inflow will grow exponentially. In the 1950s, in the US, the way that mortgages started to become popular was that instead of the local bank handling all the mortgages, all the bank would do was package up clients who wanted mortgages, and then large institutional investors like JP Morgan would buy that package as a private equity asset. We want to be able to do the same thing for companies across Africa because they’re highly uncorrelated assets. And that’s super promising for our future. But right now, we just don’t have the tools or the data on the continent to make that a reality. So Vula also sees itself as the tool through which we can start to parameterise companies on the continent and create a united vision of what’s really going on, in order to help the very large institutional players in the US or in Europe be able to invest in African businesses as an asset class. And that’s
Read MoreWiCrypt partners with Onega Ventures to bring Wi-Fi monetisation to China
Wicrypt, an innovative African startup that enables users to share and monetise their Wi-Fi connections, is breaking into the Chinese market through a strategic partnership with Singaporean tech investment Onega Ventures, the company said in a mid-November tweet on social media. The deal, announced on X, formerly Twitter, will see Onega Ventures become the exclusive distributor of Wicrypt devices in China, and provide customer support and management services. “We are excited to partner with Onega Ventures as an official Wicrypt agent and sole distributor of Wicrypt devices in China. This means that you can now purchase, repair and manage your Wicrypt devices at Onega Ventures in China,” it posted. This marks the first entry of Wicrypt into the Asian continent, where it hopes to tap into the huge demand for fast and affordable internet access. Wicrypt is hoping to provide last-mile internet to people worldwide while harnessing the power of blockchain technology. Wicrypt’s foray into China also underscores the coming of age of Africa’s startup ecosystem – now one of the world’s most vibrant in terms of VC interest. Founded in 2018, Wicrypt, a Web3 company, leverages blockchain technology to create a decentralised network of WiFi hotspots. Users can either download the WiCrypt app or buy the WiCrypto device, a customisable hotspot creator that can also display ads, surveys, and collect user data and which allows users to share their mobile data with others, safely, to create a network. The WiCrypt network is powered by NFTs (Non-Fungible Tokens), which are unique digital assets that represent each connected device on the blockchain. All the data transactions that occur through the WiCrypt devices are recorded on the blockchain via the corresponding NFTs, ensuring transparency and security. WiCrypt also rewards its users for providing WiFi services, both in cash and in its native token, $WNT. Users pay a small fee to access the Wi-Fi, while hosts earn income and incentives for keeping their devices online. The $WNT token can also be staked by hosts to join the WiCrypt Network, a community of WiFi providers that benefit from shared resources and governance. WiCrypt has grown rapidly since its inception, reaching nearly 1,100 hotspots in over 30 countries, serving more than 45,000 accounts and transmitting over 895 terabytes of data. In 2021, the startup raised US$1.5 million in funding, which it used to expand its operations and target new markets, including China. China is the world’s second-largest economy, with a population of 1.4 billion and over 800 million internet users. It also has a vibrant tech ecosystem, with many innovations in areas such as e-commerce, fintech, and social media. WiCrypt aims to capture a slice of this market by offering a novel and cost-effective way of accessing the internet, especially for the underserved and rural areas. WiCrypt CEO Ugochukwu Aronu expressed his excitement about the partnership with Onega Ventures, saying that it was a great opportunity to showcase the potential of African Web3 startups in the global arena. He also shared his vision of creating a passive income stream for millions of people who use the internet daily, by turning their devices into WiFi hotspots. Bruno Yu, COO of Onega Ventures, said that he was impressed by WiCrypt’s innovative and scalable model and that he was looking forward to working with the team to grow the WiCrypt network in China. Yu is an early investor in WiCrypt and has extensive experience in the Chinese tech sector. WiCrypt is not only a pioneer in the African Web3 space but also a beneficiary of the Nigerian Communications Commission, which invested US$5,500 in the startup during its early stages.
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👨🏿🚀TechCabal Daily – Cyberterrorists demand $60 million ransom from South Africa
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Here’s a life-saving time-saving tool? If you’ve got a long YouTube video you don’t have time to watch, you’ll soon be able to ask Bard to do it for you. Google’s AI service can now watch YouTube videos and summarise them for you. But this feature isn’t available to just everyone yet, it’s only available on Google Labs for now. In today’s edition N4ughtySec demands $60 million ransom How Eagle Eye prevents car theft Mr Price reports R63 million profit Funding tracker The World Wide Web3 Events Cybersecurity N4ughtySec demand $60 million from TransUnion and Experian for latest hack Brazil-based N4ughtySecTU Group which claimed responsibility for the March 2022 cyberattack on TransUnion, has resurfaced with bold assertions. The cyber extortion group is now threatening to leak the data of the South African consumer credit reporting agencies—TransUnion and Experian— within the next 72 hours unless it’s paid $60 million. N4ughtySecTU claims it has had continuous access to these agencies since their initial attack in 2022. ICYMI: In March 2022, N4ughtySec claimed to have gained access to files via a user with the password “password”, and claimed to have taken 28 million credit records, and 54 million identity numbers. TransUnion, refusing a $15 million ransom, faced the exposure of at least 3 million South African customers’ details. However, the credit bureau denied the breach maintaining it originated from a prior breach of a South African government website in 2017. Meanwhile, Experian faced its own data breach in August 2020, involving the exposure of 24 million South Africans’ information. What’s happening now? Both agencies have confirmed N4ughtySec’s demand, but have disputed the claims, stating thorough investigations found no evidence of inappropriate data access or exfiltration. Furthermore, they claim N4ughtySec misspelt their own name in the email used to contact media and executives. Although TransUnion and Experian have a history of data breaches, there’s no confirmation of the hacker group’s access to the companies. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Startups This Joburg startup wants to tackle vehicle theft and teen joyrides using biometric tech Eagle-Eye Defence co-founders Iviwe Mosana and Naadir Vorajee. Eagle-Eye Defence, a Johannesburg-based startup, is giving car owners greater control over their vehicles. The security company is leveraging biometric authentication to combat vehicle theft and prevent teenage joyrides. How? Using biometric fingerprint or facial recognition, Eagle-Eye’s technology ensures that only authorised drivers can start a car. Owners can also control their cars remotely using a phone app. Furthermore, authentication requests are scheduled at specified intervals, triggering alerts for owners or managers if unsuccessful. This will enable real-time monitoring and immediate intervention in case of unexpected incidents. Tragedy as a motivation: Founded by Iviwe Mosana and Naadir Vorajee, Mosana’s motivation for developing Eagle-Eye stems from a personal tragedy. In 2016, his younger brother stole their parents’ car for a joyride, resulting in an accident that claimed the lives of two of his friends. Eagle-Eye’s solution focuses on the “preventative and protective aspects of vehicle ownership.” While Eagle-Eye has successfully tested its solution on five vehicles it owns, a commercial rollout has been temporarily limited by licencing requirements regulated by ICASA. Nonetheless, they have a certificate that permits installation only in their own vehicles. The company has submitted an application for the complete licence and anticipates selling its solution to third-party clients by the middle of next year. Introducing: IP Whitelisting on Paystack Tighten security for your business by declaring the specific IP addresses from which Paystack should process API requests. Here’s how to set it up. Telecom Mr Price’s telecoms division reports R63 million pre-finance profit Mr Price has announced impressive growth in its telecoms division for the first 26 weeks of its financial year. Financial results: The South African retailer’s telecom division has recorded a profit before finance costs of R63 million ($3.3 million), a 37% increase compared to R46 million ($2.4 million) during the same period last year. This growth is attributed to retail sales within Mr Price’s telecoms segment, which reached R533 million ($28.3 million), and a strong performance by Mr Price Mobile, the company’s mobile virtual network operator. Other telecoms income, including revenue from contracts with customers, reached R87 million ($4.6 million), contributing to a total telecoms revenue of R620 million ($32.9 million). Zoom out: Meanwhile, MTN South Africa records a revenue boost in Q3 of 2023, despite grappling with 273 days of load-shedding during the initial nine months of the year. The service revenue experienced a notable 4.1% year-on-year growth in Q3, surging from 2.5% in Q2 and 1.3% in Q1, reaching R31 billion ($1.6 billion). Register for the Bluechip Data and AI Summit Join us at the #BluechipDataandAISummit: Building an Effective Data and AI Solution. Shape the future of your business and industry with data-driven intelligence, innovative solutions and sustainable growth. Secure your seat today. TC Insights Funding tracker Image source: TC insights This week, Nigerian trade finance startup, FrontEdge, raised $10 million in debt and equity funding. The funding round was led by TLG Capital with additional investment dupport from Flexport. Here are other deals for the week: Aquarech, the Kenyan fish farming startup, secured $1.7 million in equity funding. The investment was led by the Dutch global aquaculture investment fund Aqua-Spark, with additional capital from Acumen, Katapult and Mercy Corps Ventures. Egyptian e-commerce platform, WayUp Sports, secured an undisclosed amount in funding in a seed round led by Beltone Venture Capital, Index Sports Fund, and other strategic angel investors. That’s it for this week! Follow us on Twitter, LinkedIn for more funding announcements. You can also visit DealFlow, our real-time funding tracker. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $37,321 – 0.15% + 2.69% Ether $2,067 + 0.07% + 4.39% Pyth Network $0.50 + 14.19% – 23.35% Solana
Read MoreNigeria’s Central Bank Governor is ready to talk after weeks of silence
Yemi Cardoso, Nigeria’s Central Bank Governor, will tomorrow share the bank’s policy direction and economic outlook for the first time since his Senate confirmation. After two postponements of critical rates meetings, Cardoso will speak at the Chartered Institute of Bankers annual dinner. The Central Bank of Nigeria is mandated by law to hold monetary policy committee (MPC) meetings every two months to set the lending rate for Africa’s biggest economy. Still, it has failed to do so since July. “Tomorrow’s meeting may boost market confidence as uncertainties about CBN’s actions would reduce,” Mayowa Badejo, a partner at 213 Capital, an investment and risk advisory firm, told TechCabal. He added that the dinner would help Cardoso interact with bankers and share his plan regarding monetary policy with them while seeking their cooperation. Cardoso’s silence and lack of urgency comes as Nigeria battles with rising inflation, which hit an 18-year high of 27% in October. KPMG, a financial and business advisory firm, predicts that Nigeria’s headline inflation will hit 30% by December 2023. Analysts anticipated a rise in interest rates this month to help slow down inflation and protect banks from losing capital as inflation continues to rise. However, the lack of communication, which might continue until 2024, has now created a vacuum. Aside from failing to curb inflation, the failure to host an MPC meeting in four months and the lack of communication from Cardoso since his appointment are also dampening foreign investor confidence. His two-month silence comes as the naira trades at some of its lowest levels amid a dollar shortage. Under the acting CBN governor, Folashodun Shonubi, the bank raised interest rates, but Cardoso has yet to make any decisions. TechCabal reported that CBN postponed this month’s MPC meeting scheduled for Monday and Tuesday without giving a reason. The Central Bank’s decision to unveil an economic outlook for 2024, shows that Cardoso is finally ready to talk and share his ideas on how inflation could possibly be curbed. NBS data showed food inflation hit 31.5% in October. The prices of bread and cereals, oil and fat, potatoes, yam and other tubers, fish, fruit, meat, vegetables, milk, cheese, and eggs soared as cash-strapped Nigerians struggled to buy major essentials.
Read MoreTelkom share price jumped by 8% as it announced infrastructure-provider strategy
Telkom’s share price surged by 8% as it announced a strategy to pivot to an infrastructure-focused model. The company aims to act as an enabler of South Africa’s digital future. Telkom’s share price surged by as much as 8% on Tuesday as the telco announced a strategy to double down on its mobile, fibre, data centre, marine cables and satellite infrastructure provision businesses. The company stated that it would invest capital into building and maintaining infrastructure assets including fibre networks, data centres, satellite, and marine cables. The strategy, which has been under execution for six months, is expected to be concluded by the end of 2025. “[An] InfraCo strategy realises our true competitive advantage – showing Telkom to be a strategic national asset – the backbone of the SA’s digital economy and the enabler of the country’s digital future,” the company stated. Vodacom, MTN double down as fibre race heats up Telkom further said that despite only having been underway for six months, the strategy is already reaping results. The company cited strong operational and financial performances, and the delivery of “strategic imperatives” as results of the pivot to the infraco model. In its financial results for the half-year period ended 30 September, the company reported a 95% increase in cash generated from operations, 52% increase in profit after tax, and an 11% increase in mobile broadband subscribers. Despite being the country’s third largest mobile network operator, Telkom has struggled to keep up and compete with the duopoly of MTN and Vodacom in the mobile telephony business. However, the company has made some strides in its infrastructure subsidiaries. Its Openserve fibre subsidiary currently leads the fibre-to-the-home market in kilometres and homes connected by fibre. In its other infrastructure plays, the telco has ten carrier-neutral data centres in its portfolio as well as over 400 5G sites. A market opportunity spotted According to the company, the high demand for infrastructure, a leading market position, significant barriers to entry in infrastructure, a strong balance sheet and a so-called experienced management team position it in a favourable position to pursue the infraco model. Telkom also states that the infraco model simplifies its business model through economies of scale and predictable returns which would be driven by demand for infrastructure from corporates, SMEs and consumers. The fibre frontier will determine who wins the battle for 5G dominance in SA However, despite its insistence that there is limited competition in the infrastructure sector in South Africa as most telcos are focused more on services, competition does exist. Over the last two years, MTN and Vodacom have also doubled down on their fibre businesses, challenging Openserve’s market dominance. In the data centre front, Africa Data Centres, Teraco, Vantage and MTN Business continue to outpace Telkom–owned subsidiary BCX while in marine cables, Paratus and Vodacom have made more landings than the company. With a current cash balance of R3.6 billion (~$191 million) and unutilised credit facilities totalling R4.6 billion (~$244 million), Telkom has enough resources to pursue this strategy. However, whether the execution will be successful by the self-imposed deadline of September 2025 remains to be seen.
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