Peace Itimi’s new documentary spotlights the evolution of Nigeria’s tech ecosystem
On Wednesday, Peace Itimi, host of Founders Connect, a YouTube show that details the journeys of founders and operators in Nigeria’s tech ecosystem, unveiled a documentary centred around the evolution of the ecosystem over the last 15 years. Titled Innovating Africa: The Rise of Tech in Nigeria, the documentary covers the state of the tech industry 15 years ago, why the biggest tech companies in the country were founded, and the most pivotal moments and policies that have defined tech in Nigeria. The 90-minute-long film features key players such as OO Nwoye, Kola Aina, Odun Eweniyi, Adia Sowho, Tomi Davies, Jason Njoku, and Iyin Aboyeji. TechCabal had a chat with Peace Itimi to understand the thinking behind the documentary. Peace Itimi, host Founders Connect. TechCabal: How did you go from Founders Connect to a documentary? Peace Itimi: It was just a no-brainer. The idea came from doing Founders Connect. I think I just began to feel like I needed to do a deeper dive into what the tech ecosystem in Nigeria is. At the time, I was also thinking of how much growth it has witnessed in the last five years. So, for context, I think I had the idea in 2021, but started working on it in early 2022. I wanted to do a deep dive and get insight into what the ecosystem was 15 years ago. I don’t think there would have been this project if I hadn’t started Founders Connect. It was in the midst of speaking to many founders and hearing them share similar stories that I saw there is a bigger story that could potentially connect all of the single stories I’ve done. What impact do you want this documentary to have? Secondly, when people hear Peace Itimi, what do you want to come to people’s minds? PI: First of all, when people finish watching the documentary, I want them to leave them feeling nostalgic and inspired. I also want them to leave very curious. This is just one of the many angles. I don’t think that I have exhaustively covered all of the stories. I think this is the first coverage of the kind around what the evolution of the Nigerian tech ecosystem looks like. A lot of people know that Mark Zuckerberg and Jack Dorsey visited Nigeria, but not a lot of people—including myself—understand the impact of those events. But in the documentary, we hear key players talk about how these visits shone a bright light on the country. I want people to know that I’m very committed to telling our stories. There’s no ulterior motive aside from the fact that who I am now is also a reflection of the people I have met in communities that I have been to. Was there a selection criteria for those who featured in the documentary? PI: I reached out to a lot more people than those who featured in the documentary. When I had the idea, I was speaking to a bunch of different people. Some ended up becoming an integral part of the project; some of them didn’t have the time to be featured. Two people were very critical in helping me do research: Daniel Iyanda and Adedeji Olowe. So when we had an exhaustive list of key moments, events, and people, I probably had 60 different names and we started reaching out. We were particular about OGs, mid-OGs, and very early people. So how long did it take to shoot the documentary? PI: I started thinking about it in late 2021, but it wasn’t until early 2022 that we started working on it. And then we shot in July in Lagos, and London in August. So it took us about two months to do the actual production. I couldn’t shoot more because we had about 24 hours’ worth of footage and it was overwhelming to figure out how to even edit it. Editing took almost the entire 2023. I’ve been working on this project for at least the last 18 months to two years. Was this project self-funded? PI: Yes, it was, 100%. Eghosa Omoigui, founder EchoVC. How important do you think storytelling is to the growth of this ecosystem? PI: It is everything. The things that we know about Silicon Valley and every other ecosystem are because of the stories that are being told, the films that are being shot about it, or the websites that actively write about what’s happening in the ecosystem. The media builds the ecosystem. There have been different attempts to tell the story of the evolution of the Nigerian tech ecosystem, what makes this documentary different from the rest? PI: One, it isn’t written. It is a video. Two, it is not a one-person account; we featured 25 people in the documentary cast. It is the first one that has this amount of people who are sharing their thoughts. It covers every bit of the story—past, present, and future. What next should we expect from you? PI: I am going to be telling more stories, and bringing the community closer together. That’s my goal. And that’s the mission of Founders Connect—to tell as many stories as we can. We are now doing events to bring people together. I’m realising the audience is not numbers on Twitter or on my YouTube channel. I want to do more deep dives into specific companies. I think there’s another version of this documentary that could potentially be commissioned.
Read MoreAmid rapid growth, the Nigerian TikTok community sees content removals for nudity and hateful behaviour
In December, TikTok released its Community Guidelines Enforcement Report which contained information on content and accounts removed in the third quarter of 2023. Over a million videos posted by users in the Nigerian TikTok community were removed for violating TikTok’s policies by engaging in activities like adult nudity, promotion of violent or illegal activities, and hateful behaviour, among others. Beyond violating policies, these numbers are indicative of the growth of content in these regions. 2023 has seen a sharp influx in the number of TikTok videos and creators from Africa with Kenya leading this growth. However, the majority of Kenyans used TikTok primarily to stay updated with the news, unlike users in countries like South Africa and Nigeria who used the platform to stay entertained and build community. This year saw a lot of interesting creators from Nigeria, with the most common measure of virality being how much the video is shared across other social media platforms like Twitter and Instagram. One of the most popular genres this year was comedy, with creators like Isaac Olayiwola, known as Layi Wasabi going viral several times for his lawyer skits, and Josh2funny amassing millions of views and over 26 million likes for his The Audition series. The series was immensely popular on TikTok and trended globally. Other smaller creators found their audience and became TikTok sweethearts in no time. Kehinde Ajose, who creates under the moniker, Omooba stole the hearts of Nigerians with her Mummy GO skits, which depict the adventures of a conservative Christian mother receiving potential wives for her only son, Wale. Rita Ginika, known as Neekah, also rose to fame quickly with skits of her reenacting popular hilarious sounds on the platform. Outside comedy, food was another genre of content with some of the most viral videos. Hilda Baci was the most popular food creator in Nigeria, with over 14 million likes and 1.3 million followers. While the chef already had a healthy following on the app, she shot to virality during her Guinness World Record cookathon in May. TSpices, another food creator, went viral for her budget-friendly recipes and lively voiceovers, raking in 3.5 million likes. 2023 was also the year for lifestyle creators sharing with us their everyday lives for entertainment. We got a lot of GRWM content and vlogs from younger creators which did incredibly well with TikTok users. Fisayo became one of the most popular Gen Z lifestyle creators for her funny yet relatable lifestyle content. We also saw creators like Ima, who calls herself an “unemployed baddie”, win the attention of users with her funny, chaotic personality. She has a total of 5.1 million likes on the app. TikTok usage is fast growing in Nigeria, with the younger population favouring the platform over competitor, Instagram. For one, it’s an easier place to go viral and find a larger collection of short video content. Beyond watching, more people are plugging into content creation as the app never runs out of interesting trends, filters and content prompts. With the popularity of these creators, it is expected that 2024 will see a rise in a lot more creators especially in categories like comedy, food and lifestyle.
Read MoreGhana’s ride-hailing drivers reject new vehicle income tax
Ride-hailing drivers in Ghana are pushing back against a plan by the country’s revenue authority to impose a vehicle income tax, arguing that it would put a strain on their incomes. Part of the new tax notice, which is expected to go into effect on January 1, 2024, states that “any commercial vehicle owner that earns income from the operation of a commercial vehicle shall pay income tax on a quarterly basis.” Ride-hailing companies—Uber, Bolt, and Yango—are expected to verify that their driver partners have paid VIT before allowing them to operate on their platforms. Per the notice by the Ghana Revenue Authority (GRA), ride-hailing companies are required to demand a soft copy of the VIT sticker from their drivers, validate the authenticity of the stickers with the GRA, and submit the list of all vehicles on their platforms quarterly to the GRA. Several drivers who spoke to TechCabal said the new tax was a surprise as they already pay a commission to the ride-hailing companies. The drivers argue that the tax burden should fall on ride-hailing companies instead of individual drivers. Bolt and Uber charge a 20% commission on every trip, while Yango reportedly takes 18%. “Many of us already struggle due to the current commission structures,” Kwame, an Uber driver, told TechCabal. “Adding another layer of tax on top of fuel costs and car maintenance is like adding more to our problems.” “They are cheating us,” said John, another ride-hailing driver. “I know many drivers sitting at home because they aren’t satisfied with the commission taken by the ride-hailing companies. So if Ghana Revenue Authority imposes a new tax on us, how will it affect the fares?” According to a breakdown on GRA’s website, ride-hailing vehicles fall under “Class A” and will pay 12 Ghana Cedis quarterly, totaling 48 GHC annually. The agency mandates all commercial vehicle operators to buy VIT stickers from any Domestic Tax Revenue Office. The sticker is expected to be pasted on the vehicle’s front windscreen. The new regulation is Ghana’s latest attempt to impose taxes on ride-hailing companies. In April, Ghana’s Driver and Vehicle Licencing Authority (DVLA) introduced the “Digital Transport Guidelines,” which imposed a levy on every ride-hailing trip. The levy meant that all five ride-hailing firms operating in Ghana would foist an additional charge of one Ghana cedis passenger using their platforms. However, the move was criticized by citizens who already felt the pinch of a flagging economy. Ghana has one of the lowest tax-to-GDP ratios in Africa. According to a report by the Organisation for Economic Co-operation and Development (OECD), Ghana’s tax-to-GDP ratio in 2021 (14.1%)—its highest ever—was lower than the average of the 33 African countries in 2023 (15.6%).
Read MoreNairaland restores website temporarily after brief Cloudfare blackout
Nairaland, a popular Nigerian online forum and the country’s seventh-most-visited website, is back up two days after it was blacklisted by Cloudflare, an American content delivery company and Nairaland’s host. The platform is now back online temporarily to serve its vibrant community of three million users, Seun Osewa, the founder of Nairaland, shared in a statement this morning. “So we had to transfer Nairaland to a temporary host in order to bring it back to you. A very time-consuming process. We are not fully back, even though most features of the site are working. We still have a long way to go. Additional downtime is likely; don’t let it alarm you,” the statement read. Osewa said he was working to restore the site permanently. Osewa first tweeted on Monday evening that Nairaland’s website was down due to “an unscheduled maintenance operation” by Cloudflare. By Tuesday afternoon, Osewa tweeted that the Nairaland forum was taken down for a different reason. He shared that Cloudflare implemented a takedown after an overlooked abuse report was filed two weeks ago. With the return of Nairaland which allows users to create content around a wide range of topics and has helped build communities around news, politics, entertainment, and technology, many are now speculating on the potential content moderation changes that might await the platform as it navigates the aftermath of this incident. There have also been calls for a revamped design of the site, which has maintained the same design since its launch. However, media experts and users of the website say these possible improvements are likely to be weighed against the platform’s core identity and the sense of community. Osewa’s previous tweets hinted at potential updates, acknowledging the need for Nairaland to evolve and make some changes to its existing content moderation practices and perhaps its interface, which has remained unchanged since its launch in 2005. Beyond Nairaland’s internal considerations, the episode raises broader questions about the power held by internet gatekeepers like Cloudflare and the potential for unintended consequences in their content moderation efforts. Will this incident spark a wider discussion about platform accountability and transparency in the face of such takedowns?
Read MoreExclusive: YC-backed Cowrywise insists recent employee terminations were linked to performance reviews
Cowrywise, the YC-backed Nigerian fintech app that aggregates mutual funds for retail customers to invest in, has laid off five people across its marketing, engineering and customer success teams. “The company said the terminated roles no longer aligned with the company’s direction,” one person familiar with Cowrywise’s business told TechCabal. “Internal restructuring and evolving business needs were the reason for the layoffs.” Cowrywise, which employs 50 people, confirmed that five roles were terminated following an annual performance review but insists there were no layoffs. “Lay-offs are usually due to economic/business performance reasons, and this was not the case,” the company said in an email to TechCabal. At least one person with direct knowledge of the business painted a picture of a company that is evolving. “Cowrywise will be a totally different company in the coming years and will be more of a finance company than a fintech company,” said the person, who asked not to be named because they were not authorised to speak on the matter. Affected employees were paid three months’ salaries instead of one month’s salary dictated by their contract as part of their exit packages, an unusual move for people fired for performance reasons. Founded in 2017 by Edward Popoola and Razaq Ahmed, Cowrywise, a member of the YC’s Summer 2018 batch, has grown from launching with a savings feature to providing several investment opportunities to users in Nigeria. Per TechCrunch, the startup has over 220,000 users and raised a $3 million pre-Series A funding round led by Quona Capital in Jan 2021. In 2021, it received a license to operate as a fund manager from Nigeria’s capital markets regulator, the Securities and Exchange Commission (SEC). According to its website, the company has 19 SEC-licensed mutual funds investors can choose from, and at least 20% of the total mutual funds in the country are listed on its platform. Cowrywise’s layoffs occur within the context of economic uncertainty within the Nigerian tech sector. Several other tech companies have undertaken similar measures in recent months, highlighting the challenges of operating a startup in the country’s current macroeconomic conditions.
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New final payment dates for 2023 December SRD
As the holidays draw closer, the South Agabsoutlet diego-dalla-palma fracominaoutlet donkeyluckycat gioie-di-gea diegodellapalma 24h-bottle ovyescarpe lecopavillon blundstoneprezzi ynotsaldi negozitata gabsoutlet kleankanteentrinkflasche vondutchmutzenfrican government has announced the payment schedule for the Social Relief of Distress (SRD) grant for December 2023. This financial assistance is an ongoing effort to support individuals affected by the COVID-19 pandemic. SRD payment processing dates December 2023 Clients approved for the SRD grant for December 2023 can anticipate the processing of their payment between December 18 and 22, 2023. Viewing payment status for SRD December 2023 Throughout the aforementioned week, clients are strongly advised to regularly check their status on their portal via the SRD website. This online platform will provide specific details about the exact date when the payment is expected to be reflected in their respective bank accounts. This proactive step will help beneficiaries stay informed and prepared for the incoming funds. SRD December payment timeline Upon processing, it is essential to understand that the funds may take approximately 2-3 business days to reflect in the client’s bank account. Beneficiaries should anticipate this timeline and make necessary arrangements, considering the processing period and the subsequent time it takes for the funds to become accessible. Final thoughts Beneficiaries are urged to remain vigilant and utilise the resources provided by the SRD website to track their payment status accurately. Also, clients need to be aware of potential scams and prevalent fraudulent activities. Exercise caution when sharing personal information or financial details online or over the phone. The government or legitimate financial institutions will never request sensitive information via unsolicited calls or emails. Stay informed, stay cautious, and report any suspicious activity to the relevant authorities to safeguard yourself and others from falling victim to scams during this critical period. Timely updates and adherence to the outlined schedule will ensure a smooth and efficient process, allowing you to access much-needed assistance promptly.
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👨🏿🚀TechCabal Daily – Eskom is at risk of shut down
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning After being a founder for 10 years, Surayyah Ahmad accidentally got into venture capital investing. Now she runs a $20 million fund that supports outliers in a region that has been ignored by VCs for a very long time. Read about it here. Also please take this survey if you have been affected by the recent layoffs in the tech ecosystem. In today’s edition Eskom is at risk of shutdown Jenesys AI secures $1.1 million Nigeria awards $6,000 to 45 AI startups and researchers Bumpa acquires Fyyne Nigeria launches platform to curb fake drugs The World Wide Web3 Job Opportunities Power Eskom is at risk of shutdown Eskom’s emissions performance has taken a nosedive. The South African power company has released more harmful particles into the air for each unit of electricity it produces. How? Disclosed in Eskom’s interim results for the six months ending September 2023, the amount of these particles has doubled compared to last year and is now at 0.92 kilograms per megawatt-hour, specifically pointing to three power stations—Kendal, Kriel, and Matla—as the main contributors to the problem as they account for almost half of all the harmful particles released. As of September, 14 units within Eskom’s power generation system did not meet the average monthly limits for emissions set by regulations, putting 8,588 MW at risk of shutdown. What’s Eskom doing about it? Eskom attributes the elevated emissions to ageing abatement equipment, poor coal quality, and insufficient maintenance, and is actively engaging with the National Environmental Consultative and Advisory Forum regarding appeals on minimum emissions standards, with engagements extended until August 2024. The forum will make recommendations to the department of forestry, fisheries, and the environment, with minister Barbara Creecy set to rule on the appeals. Concerns about health impact persist, with Eskom previously identified as the world’s largest emitter of health-harming sulphur dioxide in 2021. The Centre for Research on Energy and Clean Air has again, in January, warned that air pollution from Eskom’s coal-fired plants could lead to 79,500 deaths by 2025. The power company also has projects underway at Kendal, Lethabo, Duvha, and Matla, that aim to reduce emissions and enhance the efficiency of abatement technologies, with most projects expected to conclude by March 2025. 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. Funding Jenesys AI secures $1.1 million pre-seed funding Jensys AI co-founders, Oluwatosin Dairo and Nicolai Thomson Jenesys AI, a B2B invoice management and payments startup, has secured $1.1 million in pre-seed funding. Founded by Nicolai Thomson and Oluwatosin Dairo, the company aims to redefine transactional accounting and compliance with AI, shifting human roles from operators to validators. The investment was led by Twin Path Ventures and joined by Fuel Ventures, Antler, Hatcher+, and angel investors from the US, UK, and Nigeria. AI-powered Jack takes the wheel: Jenesys AI’s copilot “Jack” handles invoice management, completing tasks like budgeting, bookkeeping, and compliance checks in less than 30 seconds before initiating domestic or global payments. This boosts cash flow efficiency and international supply chain payments. Integrating AI into finance: Along with securing pre-seed funding, the AI bookkeeper startup has also acquired VAT Key, a Danish digital TaxTech company for a six-figure sum, and welcomed its founder, Jonathan Bredo, as strategy manager to head payments and compliance. Introducing: BookingPress integration BookingPress helps you manage your appointment bookings end-to-end on WordPress. Get paid online via Paystack when you use BookingPress. Learn more → Funding Nigeria awards $6,000 to 45 AI startups and researchers Bosun Tijani, Nigeria’s minister of communication, innovation, and digital economy Nigeria is actively investing in AI development and application. Bosun Tijani, Nigeria’s minister of communication, innovation, and digital economy, has unveiled 45 startups and researchers chosen for the country’s first National AI Research Grant Scheme (NAIRS). Each recipient was vetted by a panel of 25 AI experts and will receive a grant of $6,000. What’s the vision? Tijani says it is to allow the recipients to “explore further opportunities to deepen their work and build a sustainable AI ecosystem in Nigeria”. Among the 45 beneficiaries, 11 startups secured funding to cover crucial sectors such as health, agriculture, education, finance, governance, utility, and environmental sustainability. Meet the startups: Lendsqr, Aurelius, Nurse Oge, Tamela, Quantum Innovative Tech Solutions Ltd, Life-Elixir Computers, Farmspeak Technology Limited, Gwin Technologies Limited, IDB Analytics, Edunetix, and Cardio Intel are the 11 startups chosen for NAIRS. The grant scheme aligns with Nigeria’s broader engagement in the global AI landscape, as evidenced by its participation in the “Bletchley Declaration“, alongside two other African nations. Zoom out: Nigeria is actively developing its national AI strategy. Per Microsoft co-founder Bill Gates’ recent prediction for the future impact of technology on healthcare, education, and the workforce, Africa could see widespread AI adoption within three years. How do Nigerians save and spend? Did you know that 64% of Nigerians save a portion of their monthly income? Read PiggyVest’s first-ever savings report to see more about how Nigerians save and spend here. E-commerce Bumpa acquires Fyyne Co-founders of Bumpa, Kelvin Umechukwu and Adetunji Opayele Bumpa, a Nigerian e-commerce company, has acquired Fyyne, a beauty marketplace. The terms of the deal were undisclosed. Fynne? Launched in 2020, the startup provides tools that black barbers and hairstylists need to run their businesses. In January 2022, Fyyne launched a new app that allows users to easily find, book, and pay for hairstyling services from black hairstylists while enabling independent black hairstylists and barbers to promote their skills and make money. Terms of the deal: The move comes one year after Fyyne launched its beauty tech platform and secured undisclosed pre-seed funding. Fyyne will continue to operate as an independent platform, while Bumpa will take over its technology, customer base, and some team members. As part of the deal, two co-founders of Fyyne,
Read MoreNomba lays off employees after winding down retention team
The department shutdown at Nomba follows a hiring freeze, but the company says that there is nothing out of the ordinary.diego-dalla-palma akutrekkingshop legioiedigea and-camicie gioie-di-gea mandarinaduckoutlet loevenichmutze guardianiscarpe loevenichhutkaufen kleankanteentrinkflasche 24bottles akuscarpe 24bottles harmontblainescarpe kleankanteentrinkflasche Nomba, a Nigerian agency banking startup, has shut down its customer retention department, laying off an undisclosed number of its staff and absorbing the rest to its other teams. Around the same time, the former leader of the now-absolved customer retention team moved to the switching company Interswitch. According to reliable sources, there is also a hiring freeze across the company. Nomba’s CEO, Adeyinka Adewale, told TechCabal that the layoffs were performance-based and merely a part of the cyclical life of the customer retention team, which he claims works on time-bound projects. He told TechCabal that they were hired on a fixed-term contract but did not specify how many staff were on the team before and after the firings. “We have over 350 staff, and at one point or another, employees go beyond their job descriptions to do things like sales, customer support, and customer retention,” said Adewale. “We only set up this team when we have a drive to retain customers, and sometimes the team members are let go if they do not meet expectations.” Adewale did not specify how many employees were let go from the team but said that high performers were absorbed into full-time roles in other teams like customer support and sales because they had spent considerable time understanding its over 300,000 customers. On the other hand, Adewale confirmed reports of a hiring freeze across the company. “Q3 is when we make critical plans that will only mature in next year, so it makes better business sense to hire the necessary talent till then.” He said the company will inevitably see a lot of new hires by February. This year has seen job cuts from well-funded fintech companies like Paystack, and even Nomba’s former competitor Kippa which recently exited the agency banking sector due to currency inflation and decreasing margins. Up until now, there has been no news of layoffs from Nomba, which announced a $30 million pre-Series B funding raise in May. The company raised the funding at a $150 million valuation led by San Francisco-based Base10 partners, with participation from Helios Digital Ventures, Shopify, Partech, and Khosla Ventures. Formerly known as Kudi, the YC-backed company has substantially evolved from a natural language processing bot that assists people trying to make online payments to being a fully licensed payment service provider in Nigeria. Namba told TechCabal that it supports more than 300,000 businesses with its banking and payment solutions. In May, the company also claimed to process $1 billion in monthly transactions. The company provides POS devices, and it has added omnichannel features that can reduce reconciliation time and financial errors for enterprise customers. “We have included menu software that allows waiters to take orders directly on the device. This will greatly reduce revenue losses for restaurants who often have to make several reconciliations on the backend,” the CEO told TechCabal. The company also said that it has partnered with several FMCG businesses, and it hopes to partner with startups like restaurant-tech Vendease to extend the reconciliation feature of its omnichannel POS devices to more inventory-based businesses.
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New updates, fees, dates for JAMB CBT 2024/2025
The Joint Admissions and Matriculation Board (JAMB) has officially announced the schedule for the 2024/2025 Unified Tertiary Matriculation Examination (UTME) and Direct Entry. The highly anticipated computer-based examination, which serves as a gateway for Nigerian students into tertiary institutions, comes with crucial dates and guidelines that aspiring candidates need to heed. Joint Admissions and Matriculation Board 2024 registration period The registration for the CBT JAMB 2024/2025 UTME and Direct Entry will kick off on the 15th of January 2024, marking the commencement of the application process for prospective candidates. Registration deadline and fees Aspiring UTME and DE candidates should take note of the deadline set for the 26th of February 2024 and 28th of March 2024 respectively for completing their registration. The registration fee for both UTME and Direct Entry has been fixed at ₦6,200. Foreign students will pay $30 only. JAMB prescribed literary text 2024 For the 2024/2025 UTME, candidates must read the prescribed novel The Life Changer by Khadija Abubakar Jalli. A comprehensive understanding of this literary piece is crucial, as questions related to it will feature in the Use-of-English examination. Examination slip reprinting The reprinting of JAMB examination slips is set to commence on the 10th of April 2024. Candidates are urged to promptly reprint their slips to access essential details such as the examination date, time, and venue. JAMB mock examination 2024 An optional mock examination for the 2024/2025 UTME has been scheduled for the 7th of March 2024. Candidates have the choice to participate in this preparatory test, providing an opportunity to familiarise themselves with the exam format. Candidates opting for the mock exam will pay a total of ₦7,700. UTME commencement and duration The main Joint Admissions and Matriculation Board 2024/2025 UTME is slated to begin on the 19th of April 2024 and will run through to the 29th of April 2024. Candidates are strongly advised to constantly check for JAMB updates as these dates may be changed if need be.
Read MoreCan Aduna Capital’s $20m fund bring northern Nigeria’s tech ecosystem into the foray?
Ask An Investor edition featuring Surayyah Ahmad and Sanusi Ismail, general partners at Aduna Capital. In November, Surayyah Ahmad and Sanusi Ismail announced the launch of Aduna Capital, a $20 million fund targeted at discovering and nurturing early-stage tech founders across Africa, with a keen focus on the northern Nigeria startup ecosystem. For this edition of Ask An Investor, TechCabal spoke to Ahmad and Ismail about why the fund will focus on northern Nigeria, their experience in raising a fund during a VC crunch and more. Please share a bit of background on your VC journey Surayyah Ahmad: I’ve been a founder for almost 10 years, having started an e-commerce and fulfilment service company that was based in Abuja. Back then, I honestly didn’t like the support that I could get in the ecosystem probably because there was no ecosystem to start with. So it was quite a struggle raising funds and I ended up raising around $250,000. In 2019, I had to do an M&A deal because the economy wasn’t aligning with the company’s growth. We merged with a company that was trying to enter the same market. After that, I started another company in the UK. That is when I accidentally got into VC, mostly due to my knowledge of the African market and serving as a venture partner to a couple of VCs in London. But what was clear at the time was that though I was sourcing deals, I couldn’t source deals from my community in northern Nigeria. There were incredible founders but the issue was that they were more technical and could not put a story together to get investors to be interested in their companies. It struck me that I was working in the wrong environment where I wasn’t making a lot of impact. I was doing TTLabs, in the UK, as a venture partner sourcing deals for VCs. So I decided to repurpose TTLabs into something that could become an accelerator helping founders in northern Nigeria. So we would incubate them for six months, and then put them through our process to getting funded. Now, I think it was like a Pandora’s Box in that the more we did those things, the more we realised that the problem was deeper. So Sanusi and I as well as a few other friends aligned on solving this problem. We functioned as business angels because we’ve been investing in other companies. So we thought, how about we come together as an angel syndicate and start to invest in these companies ourselves? So what started as an angel investment syndicate got a lot of traction and interest and eventually evolved into the fully-fledged fund Aduna Capital is today. Sanusi Ismaila: I think that all of my experience has led up to this. Firstly having started my own software company in the past and gone through the struggles, knowing where the shoe pinches at times, understanding what it is like to have a vision and want to get it done but not have people think that it’s possible. Having seen people from a certain region with brilliant ideas that are built into products, and then seeing them struggle to raise capital, I can relate to the problems we are trying to solve as Aduna Capital. So all of that all of that experience aligns with the firm’s mandate to take some bets that most other firms will not take. We are looking at a region that most other firms are not looking at. We know that there’s a lot of potential in northern Nigeria and we hope that by pioneering investing in the region, eventually, other firms will follow suit. TC: The fund will have an explicit focus on northern Nigeria startups. Please elaborate on this decision SA: So part of what we realised was that Lagos has gotten so much traction and investor interest that although there are incredible founders in Lagos, there are also people who can get funding just because they’ve started a company with a lot of noise. I’m sure you’ve seen the recent news on founder dishonesty and whatnot going on in the ecosystem. Northern Nigeria is different in that it subscribes to what is called the honour system. It’s a very high-trust environment and there are a lot of founders doing some amazing things quietly. Additionally, over 60% of Nigeria’s population currently resides in the north so when people put on their pitch deck that Nigeria is a massive market, the majority of that market resides in the north. But as Nigeria is also predicted to become the fourth largest country in the world by 2050, 70% of our population will recite in the north. SI: There is a geographical advantage in that the north is surrounded by Francophone countries, Niger, Chad, and Cameroon and a lot of trade happens between these countries. I think as other companies are focused on expanding to Ghana, Kenya, South Africa, etc, we are looking to explore the potential of expanding from northern Nigeria to other Francophone countries. It’s about looking at the other side of opportunities that not everybody is looking at. So we see the North as a ready market to launch products and expand to other parts of Africa. We want to support outliers that are currently in this region. A lot of them have been bootstrapping and have raised small ticket funds but have not raised anything after that. And it’s not because they’re not bankable companies. When you see their books, you’ll see that they are doing very good numbers and are sustainable as well. It’s just because they don’t know how to raise and that we haven’t built an ecosystem of raising VC funding in northern Nigeria. And that’s what Aduna Capital is trying to change. What has been your experience raising funds in the current funding winter when LP funds are hard to come by? SA: It’s an ongoing experience because we have not closed the fund but
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