As Nigerian stock market booms, SEC board’s absence casts shadow over rally
While Nigeria’s stock market continues to soar globally, its regulator, the SEC, continues without oversight. In January, NGX, Nigeria’s stock market, was the world’s best-performing stock market, but amidst this rally, a crucial watchdog is missing: the board of the Securities and Exchange Commission (SEC). Nigeria’s SEC oversees the exchange and protects investors but has operated without a board for nearly a year. [ad] “President Tinubu has not made any appointments yet,” an investment analyst at the SEC who declined to be named told TechCabal. Typically, the president appoints board members, and the Senate confirms the appointees to insulate the board from political interference in its job to keep the SEC accountable. The NGX and the SEC did not respond to TechCabal’s request for comments at the time of this report. The term of the previous board expired in May 2023. Per the SEC website, the board comprises a chairman and four other members, including the Ministry of Finance and Central Bank representatives. The SEC’s Director-General, Lamido Yuguda, is the highest-ranking official on the board, per the SEC’s organogram. [ad] Despite the optimism around the NGX in the last year, there have been concerns that need regulatory attention. The market’s frothiness has masked allegations of insider trading and a vital criticism: the NGX’s inability to attract new and exciting listings. EDC Nigeria, a securities research firm, says the rise in stock prices is due to investors taking positions “in fundamentally driven stocks as we approach the earnings season.” [ad]
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Latest news on SRD SASSA payment for February 2024
As we approach the month of February 2024, beneficiaries of the South African Social Security Agency (SASSA) grants eagerly anticipate the upcoming SASSA Payment 2024 schedule. SASSA plays a pivotal role in supporting vulnerable individuals through various grant programs, and here’s a detailed breakdown of the payment dates for February: 1. SASSA Payment 2024 for Older Person’s Grants What you should know includes: Payment Date: Friday, February 2, 2024. Beneficiaries of Older Person’s Note: Grants can expect their SASSA Payment 2024 to be credited to their accounts on this day. This includes any arrears owed to the recipients. 2. SASSA Pay 2024 for Disability Grants For the Disability Grants: Payment Date: Monday, February 5, 2024. Note: Recipients of Disability Grants will receive their SASSA Payment 2024 starting from this date. This encompasses any grants linked to the specified accounts. 3. SASSA Pay for Children’s Grants Children’s wards should note the following: Payment Date: Tuesday, February 06, 2024 Final thoughts SASSA emphasizes responsible financial planning, encouraging beneficiaries to avoid rushing to withdraw funds immediately upon receipt. This patient approach ensures access to funds when necessary and contributes to financial security. For any inquiries or assistance related to SASSA Pay for 2024, SASSACARES is available through their toll-free helpline at 300000, operating from 10 am to 11 am. Beneficiaries are encouraged to reach out for support or clarification regarding their grants. As the payment dates approach, beneficiaries should remember to check their account balances regularly and verify the credited amounts. This proactive measure ensures transparency and addresses any discrepancies promptly. Additionally, SASSA urges recipients to update their contact information promptly to receive important notifications and announcements regarding their grants. It’s essential for beneficiaries to understand the significance of the provided payment dates and adhere to the recommended financial practices. Ultimately, responsible handling of grant funds contributes to the overall success of the SASSA program and enhances the well-being of the individuals it serves.
Read MoreHere is why SA startups saw an uptick in average valuations in 2023
South Africa was the only ecosystem in sub-Saharan Africa to see an increase in average valuations in 2023, according to data by MAGNiTT. Experts explain how the country managed to go against the grain. While valuations of tech startups in Sub-Saharan African countries broadly declined in 2023, South African tech startups were the exception, with an average increase of 21% in their valuation, according to data from MAGNiTT, a data research firm. The tenacity of South African startups is further reiterated by Partech, who stated: “Despite a -34% YoY decline in total equity funding in 2023, South Africa has been the most resilient ecosystem in the top 4, emerging as the new leader of the African tech funding landscape.” According to three VC firm managing partners who spoke to TechCabal, tougher competition for deal flow at early-stage startup investment drove up valuations in the South African tech ecosystem. “The global fundraising slowdown affected fund managers looking to raise funds, leading to delays in closing new funds,” said Naeem Sayes, senior research associate at MAGNiTT. ”This correlated with an adjustment in their strategies, favouring early-stage investments with a longer horizon to exit.” The shift in priorities to early-stage startups led to tougher competition among local funds in earlier stages, driving up round sizes and valuations from Seed to Series A. South Africa also saw a best-of-the-worst decline in seed investments, decreasing by 44%, while the rest of the continent averaged a 77% decline. On a per-deal basis, seed-stage deals increased by as much as 40%, according to data from Partech. The tenacity of some South African entrepreneurs and business models might also explain the trend, said Keet van Zyl, managing partner at Knife Capital.” When the heat of cash burn got too much in some other markets, SA startups suddenly became more attractive,” van Zyl told TechCabal However, despite this increase in valuations, van Zyl cautioned startups to focus on building resilient business models instead of being blinded by paper valuations. Instead of the hype, build a capital-efficient [business] with a recurring revenue model that consistently outperforms the ‘Rule of 40’ (revenue growth rate plus profit margin exceeding 40%),” van Zyl concluded. “Strive for a local cost base and hard currency revenue.”
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Exclusive: Target Global backed fintech, Kippa, is pivoting to edtech
Kippa, the financial management startup backed by Target Global, is pivoting from fintech and is piloting a new edtech service that enables anyone to create new online courses or deliver exciting ones in bite-sized formats using AI, an ex-employee with knowledge of the business told TechCabal. Kippa has created a new website for its new product, with which users can produce online courses and deliver those courses using messaging tools like WhatsApp and Telegram. Kippa declined to comment on any part of this article. Image source: Kippa Kippa’s pivot from financial management and bookkeeping is unsurprising given the company’s struggles in the past year. In 2023, the company laid off 40 employees after a difficult decision to shut down Kippa Pay, its agency banking business. At least two ex-employees said the layoffs were surprising. “One month before the layoff, in a general meeting, one of my colleagues asked the CEO—Kennedy Ekezie—if there would be job cuts, and he said no,” said an ex-employee. KippaPay was later transferred to the Nigerian fintech company Bloc, and some of Kippa’s employees moved to Bloc as part of that process. Exclusive: ₦30 million internal fraud sours exit as Kippa scraps severance for laid-off workers “I know that the entire engineering team was laid off,” another ex-employee said, claiming that less than ten people are working on the new edtech product. “Monty Dimpka, who was laid off, rejoined as engineering lead for the new product. There is also a web engineer, a finance manager, a customer-facing staff, and a product manager in India working on the product.” With this transition, Kippa leaves behind discontinued and unreleased projects. Two employees told TechCabal that before the company shut down its agency banking product, there had been plans to unify it with the bookkeeping app. There were also plans to monetize its Invoice service, but none worked out. “I am rooting for them, though. Kennedy is a great guy.”
Read MorePade processed ₦11bn in salaries in 2023 after landing Flutterwave as client
Pade, a startup that helps businesses manage their HR functions, caused a stir on X (formerly Twitter) when it shared that it paid ₦11 billion ($12 million) in salaries for its clients in 2023. With over 100 businesses on its people operations platform and over 6,500 employees, the math of it works out to an average salary of ₦240,000 across all the companies it handles payroll for. That figure is eight times Nigeria’s minimum wage. Some other numbers caught the eye, like how 60% of employees earn less than ₦150,000 and 25% earn more than ₦250,000 per month. Launched in 2022, Pade’s growth has been rapid. The ₦11.473 billion in salaries it paid to employees in 2023 was a 41.1% increase from its 2022 figure of ₦7.245 billion. The third and fourth quarters drove much of that growth, coinciding with when Pade signed Flutterwave, the Nigerian payment behemoth, as a key client. Landing Flutterwave’s business opened the door to other major players. Its other clients include Famasi, Risevest, Max, and Dantata. For the company’s leaders, growth has been a function of opportunity meeting preparation. “We have spent the last two years tweaking our product to build the right tools companies need to manage their staff,” said Seye Bandele, founder and CEO. “We invested substantially in bolstering brand awareness, refining our sales processes, cultivating authentic relationships with our audience,” Ore Badmus, Pade’s marketing lead, added. Pade’s onboarding and payroll platform helps HR professionals automate repetitive administrative tasks. Seye Bandele and Lekan Omotosho, Pade’s CTO, who previously worked in the HR departments of large FMCGs, decided to build the tech for other businesses to carry out HR functions. Pade’s payroll software solution, which uses a subscription model, is the company’s biggest revenue driver. The startup also makes money from paying taxes and pensions for its clients, and in 2023, it processed ₦76 million in taxes and ₦28 million pensions. In 2023, it launched Earned Wage Access (EWA), a feature that allows employees to draw an advance from their salaries before payday. It paid out ₦3 million in EWA last year, for which it charged withdrawal fees of 1-3%. Offering the EWA feature to employees on its clients’ payroll came with its bag of challenges. “Early on, establishing clear communication channels with employees was crucial,” admitted Ore Badmus, Pade’s marketing lead. Pade’s future moves in employee empowerment The startup has some interesting products in the works, including a feature that lets employees save and invest a portion of their salaries. It is also building a no-code tool HR consultants and small business owners who need access to payroll services. Pade raised a $500,000 pre-seed round in 2023 and is in talks for a new funding round. It has received support from the Microsoft-backed FAST startup accelerator program, which selected the startup for its first cohort in collaboration with Flapmax. Last year, the startup also got into Expert Dojo, an international early-stage startup accelerator that has invested in African startups such as Eden Life, Trade Lenda, VipLink, Aladdin, and others. Bandele says the startup is inching toward profitability and is targeting $1 million in revenue for 2024. The startup also has plans to expand into an East African market in the near future.
Read MoreLatest JAMB CBT mock updates 2024
In recent developments, it has been gathered from Joint Admissions and Matriculation Board (JAMB) candidates that all available slots for the JAMB CBT mock exams in Lagos for the year 2024 have been filled. We spoke to a couple of candidates currently trying to register for the Unified Tertiary Matriculation Examination (UTME) who narrated the challenge they face in not being able to choose Lagos as their preferred location. The limited capacity issue arises from the fact that only one day has been designated for the mock exams, and admission for it is granted on a first-come, first-served basis. This means that candidates resident in Lagos and who want to sit for the mock exam but have missed out on securing a slot in Lagos may need to consider travelling to neighbouring states where availability still exists. The exclusivity of slots in Lagos has created a challenging situation for local candidates, adding an unexpected hurdle to their preparation for the upcoming JAMB exams. This emphasises the need for a more robust JAMB infrastructure in densely populated states like Lagos. Notes to draw from the Lagos JAMB mock 2024 development 1. Alternative Locations Since JAMB mock slots are full in Lagos, candidates can consider exploring neighbouring states like Ogun and Oyo before theirs get filled too 2. Prompt registration If you are in neighbouring states like Oyo and Ogun, or in other states too, ensure timely registration for the JAMB mock exam to increase your chances of securing a slot, given the limited availability. 3. Use the JAMB Syllabus to study If you won’t eventually get to sit for the JAMB CBT mock exams, simply dedicate sufficient time to practising past JAMB exam questions and especially use the JAMB syllabus to familiarise yourself with likely questions. 4. Time Management skills Hone your time management skills during mock exams if you’ll be taking it or while practicing by yourself at home. Time yourself less than the potential time you’ll be allotted on the exam day and try to answer questions as efficiently as possible. these will help optimise your performance on the designated day. Final thoughts on JAMB CBT mock updates 2024 As candidates adapt to these unforeseen circumstances, staying informed and proactive in their approach will be essential for a successful JAMB mock exam experience in 2024.
Read MoreBreaking: Bolt launches in Zimbabwe with zero driver commission for six months
Bolt, an Estonian e-taxi company with operations across Europe and Africa, has launched its services in Harare, Zimbabwe. Bolt will not receive any commission from drivers for a minimum of six months. This same no-commission incentive was used during the platform’s launch of operations in Zambia. In countries like Kenya, Bolt applies a standard 18% commission, and no longer requires a booking fee. The Zimbabwe entry marks Bolt’s presence in its twelfth country, with its first launch in South Africa in 2016. Before this expansion, Bolt had conducted pilot operations in Zambia in October 2023. According to a statement seen by TechCabal, the platform will initially undergo a pilot test, which has onboarded 300 driver partners. Zimbabwe is now Bolt’s third station in the southern Africa region and will offer ride-hailing services to both corporates and individuals. Laurent Koerge, Head of Expansion at Bolt, said, “We are excited to be piloting our services in Zimbabwe. Our goal is not only to offer our drivers higher revenues per hire but also to ensure a high demand due to competitive prices. Accordingly, our commission is significantly lower than that of our competitors.” In early 2023, Bolt announced its plan to invest over €500 million in the African market. One of its initiatives was to job offer opportunities for over 300,000 driver partners. Currently, the company operates in 45 countries globally, serving more than 150 million customers and working with over 3 million drivers. The platform has worked towards enhancing the safety of its services for both riders and drivers. Addressing various safety concerns, it took the step of suspending over 10,000 drivers in Nigeria and Kenya during the last six months of 2023. Bolt has also implemented safety features, including an SOS button, rider and driver verification, and the ability for users to notify Bolt if a driver opts to go offline during a trip.
Read MoreIn 2023, 1 in every $3 invested into startups in Africa went into climate tech
Climate tech startups bucked the trend in Africa’s venture capital space, actively notching up an impressive $1 billion amidst a broader funding fall-off in 2023. Data tracker, Africa: The Big Deal notes that around 1 in 3 dollars invested into startups on the continent in the forecast period went to climate tech startups. The strength of the sector according to the Deal, illustrates “both the potential of ‘green’ investments in Africa and the increased focus of investors in this space.” “While energy and water start-ups took the lion’s share, agtech dominates the early-stage pipeline, also pointing to the need for greater innovation across diversified sectors that will need to adapt to climate impacts.” Rising investor interest in regional climate tech mirrors findings from the 2023 Africa Climate Awareness Report, published by bird story agency, which showed a growing preference for cleaner solutions among the populace. Africans showed a strong inclination towards green solutions such as solar-PV and electric vehicles, which are slowly entering the market, especially in Kenya, Nigeria, South Africa, Egypt and some Maghreb states. Partech Africa trackers showed that African tech startups hauled in $3.5 billion in total funding (equity and debt combined), a 46% dip from the previous year, spread across 547 deals. Despite a 22% drop in the overall amount raised by the climate tech sector between 2022 and 2023 (falling from $1.6 billion to $1.2billion), the sector still managed a modest increase in the number of debt deals – from 71 in 2022 to 74 in 2023. Part of the sector’s resilience is the availability and diversification of funding sources, such as impact investors, development finance institutions, corporate venture capitalists, and philanthropic organisations keen to support climate tech startups. The emergence and innovation of new business models and technologies such as pay-as-you-go have also made these startups more bankable, while artificial intelligence and the Internet of Things have enabled them to scale and reach more customers. Late last year, several climate tech startups from Africa were featured in the inaugural Google for Startups Accelerator. They offered solutions for energy, agriculture, and transportation using data, AI, and clean energy. These included NeedEnergy, a Zimbabwean startup that uses data intelligence to provide smart and clean energy solutions and Octavia Carbon, a Kenyan startup that designs, builds and is set to deploy machines that can directly capture CO2 from the atmosphere in the Kenyan Rift. Others were Seabex, a Tunisian startup that offers an AI-driven sensorless precision irrigation solution that empowers farmers with actionable insights for water-efficient crop growth and SolarTaxi, a Ghanaian startup that provides locally assembled electric vehicles to advance the growth and adoption of sustainable transportation. Support for climate tech companies in Africa has been growing internationally, too. At COP27, several UN agencies launched a programme to drive new capital flow in climate tech to help African states harness and build renewable energy systems to power their economies. Climate tech is seen as an important ingredient in fast-tracking Africa’s transition from high-pollution industries to adopting clean sources and promoting an energy transition in line with the 1.5-degree goal
Read MoreNigeria’s broadband penetration drops 10.7% on adjusted population figure
Nigeria’s broadband penetration declined by 10.7% after Nigeria’s Population Commission adjusted the country’s population figures. Per the adjustment, only 40.48% of 216.7 million Nigerians had internet access by September 2023. The adjustment caused a five-month delay in sharing the data. Aminu Maida, Executive Vice Chairman of the NCC, said the adjustments are appropriate to maintain the integrity of the telecom industry‘s data. The adjusted figures show Nigeria still has some way to go in reaching a recent broadband penetration target of 70% by 2025 set in the Strategic Blueprint presented by Bosun Tijani, Minister of Communications, Innovation, and Digital Economy. Broadband penetration refers to the amount of the internet access market that high-speed or broadband internet has captured. The Nigerian Communications Commission (NCC) said the previous calculation of the industry statistics was based on a 2017 projection of 190 million people. To align with international best practices, the NCC used the NPC’s 2022 projection of Nigeria’s population at 216.7 million to calculate the latest figures for September. The adjusted calculation also led to a decline in Nigeria’s teledensity from 115.63% to 102.30% in September. Teledensity measures telephone penetration in a population. However, active voice subscriptions witnessed a slight growth of 0.63% from 220.3 million to 221.7 million as of September 2023. Internet subscriptions grew slowly by 0.71%, from 159 million in August to 160.1 million in September. On Saturday, Karl Toriola, CEO of MTN Nigeria, said that the rising cost of smartphones and other connectivity devices is primarily responsible for the continued digital inclusion gap in the country.
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👨🏿🚀TechCabal Daily – Nigeria to fight PoS fraud
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning January’s finally coming to a close. As you reflect on which of your resolutions are reasonable and which are as idealistic as unlimited PTOs, please take a minute to tell us what you think about TC Daily so far. Give us a shoutout on X (Twitter), or respond to this email with your thoughts. Let’s go! In today’s edition Nigeria wants to tackle POS fraud MTN invests $215 million in Benin Will $500 million clear Nigeria’s backlog? Kenya’s Apollo receives $10 million in funding The World Wide Web3 Opportunities Cybersecurity Nigeria to tackle POS fraud Last week, financial institutions sought regulatory approval to launch their fraud-fighting mission. That mission will see two areas receive special focus: Bureau de Change operators and banking agents often serving as fraudsters’ cash-out channels. This week, the county’s apex bank is taking it a step further. In a collaborative effort to combat fraud, the Central Bank of Nigeria (CBN), through the Nigerian Electronic Fraud Forum (NeFF), has teamed up with the Association of Mobile Money and Banking Agents of Nigeria (AMMBAN) to implement a new security feature on Point of Sale (PoS) terminals. This feature will alert agents to potentially fraudulent transactions and prompt them to collect specific Know-Your-Customer (KYC) information before proceeding. If your PoS transaction is flagged, you basically have to verify your identity. Why? Reports show that in Q1 2023, Nigerian banks lost ₦472 million ($562,491) to POS and mobile fraud. BY Q2 2023, the number quadrupled with over 10,098 fraud cases worth ₦1.95 billion ($2 million) reported. Last year, Nigeria had several cash shortages that sent people running from banks to PoS agents who are available on almost every street. Per NIBSS, in March 2023, there were 1.8 million deployed PoS terminals in the country and the value of transactions over PoS terminals jumped to ₦1.1 trillion ($1.1 billion) compared to the ₦718.5 billion ($756 million) recorded in the same month in 2022. The fight against fraud isn’t a solo act: The Nigerian Interbank Settlement System (NIBSS), is the tech muscle behind the new PoS feature which is set for a Q1 launch. The Nigerian police and the Department of State Services (DSS), are also working alongside NIBSS and the association of banking agents in Nigeria to track fraudsters at agent locations. There are also hopes to mandate a common identification system for the over 1.7 million banking agents on the AMMBAN database. 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. Telecom MTN invests $215 million in Benin Africa’s telecom giant, MTN Group, has pledged a $215 million investment in Benin over the next three years. What’s the investment for? The investment will first see the MTN Benin subsidiary which has been in business for 25 years get a brand-new office. MTN Group has successfully tested its 5G services in Benin and sees potential in the country. The investment is a strategic move to leverage this opportunity for mutual benefit between the telecom and the host country. Additionally, MTN will partner with the government and other stakeholders, to invest in education and skills development for the youths. The announcement was made during a visit to Cotonou by an MTN Group delegation, led by President and CEO Ralph Mupita, in a meeting with Benin’s President, Patrice Talon. MTN has also made similar investments in Nigeria and Cameroon. In July 2023, the telco revealed a $3.5 billion investment plan for Nigeria’s economy over the next five years. In Cameroon, the group invested $225 million, over three years, to strengthen its operations in the country. Zoom out: MTN recently revealed its planned exit from three smaller markets—Liberia, Guinea-Bissau and Guinea-Conakry—in November 2023, with their 1.6% revenue contribution and subscriber counts below 10 million. Benin, a country with just 8 million subscribers is getting a royal treatment from MTN. Numbers tell one story, but Benin’s got something else going on—and it’s worth $215 million. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. Economy Nigeria makes new $500 million injection to clear FX backlog Nigeria’s Central Bank yesterday pumped $500 million to partially clear an FX backlog that has continued to pressure the country’s currency. The fresh cash injection is coming as the naira hits a new low of ₦1,421 per dollar on the official market this week. Lagos-based investment bank Chapel Hill Denham also estimates the country’s dollar liquidity at $100.97 million, indicating a 20% shortage. Despite a devaluation last year and a decision to float the Naira, the currency has witnessed even more volatility as the CBN tries to clear a backlog thought to be around $5 billion to $7 billion. This week’s sharp plunge has been the subject of social media frenzy, and many commentators have criticised the apex bank for a lack of clarity around policy and a seeming lack of urgency. Why it matters: The persistent currency depreciation as a result of the backlog fuels inflation and stifles the purchasing power of the everyday Nigerian as prices of electronics, food prices and other necessities are on a steady increase. A used iPhone XR that used to be about ₦150,000 ($167) in 2023 has doubled in price. Similarly, a carton of noodles which cost ₦4,500 ($4.73) in 202 now costs ₦7,000 ($7). Zoom out: Last week, Wale Edun, the minister of finance, shared plans to get a $1.5 billion loan facility from the World Bank and possibly tap the Eurobond market, but a continued dollar shortage in the short term has left the market unimpressed. Accept fast in-person payments, at scale Spin up a sales force with dozens
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