Africa’s motorcycle taxis on the electric horizon
Motorcycle taxis, a dominant transportation force in Africa, have substantial potential for electrification as electric two- and three-wheelers gain traction across the continent. These insights stem from a recently launched UNEP report focusing on the state of global electric two- and three-wheelers in emerging markets. At a virtual report launch on Wednesday, January 10, Tom Courtright, the Research Director at Africa e-Mobility Alliance, who is also the lead researcher for the African region in the report, delved into the underlying electrification potential of two-wheelers in Africa. “We expect commercial two-wheelers, the motorcycle taxi segment, to be particularly dominant,” he explained during the launch. Reflecting a global trend, the past three decades have witnessed a surge in the number of Internal Combustion Engine (ICE) motorcycles across Africa, reaching an estimated 27 million two and three-wheelers. However, 99% of these vehicles still rely on traditional ICE technology. While two-wheelers are relatively scarce in some markets, such as Botswana, their adaptation to commercial taxi services, especially in high-density urban areas, has fueled their ascent in most regions. Data from the UNEP reveals that in the East African Community, for instnce, encompassing Kenya, Uganda, Tanzania, Rwanda, and Burundi, up to 5 million motorcycle taxis are operational. The confluence of factors, including an increasing abundance of two-wheelers, lower electrification costs, and relatively high efficiency, positions electric two-wheelers as a high-potential segment for electrification. Notably, the cost constraints associated with remodelling four-wheelers underscore the pivotal role that two and three-wheelers can play in kick-starting a massive transformation towards cleaner alternatives in public transit. According to the International Energy Agency, conversion costs for a four-wheeler in Africa could cost between US$25,000 and US$45,000 per vehicle depending on the car model. Conversion for motorcycles can cost less than US $1000 according to Roam, a Nairobi-based e-motorcycle manufacturer. However, despite the immense underlying potential for two and three-wheelers, Courtright explained that “tax incentives are critical here” to realize this potential. Beyond two-wheelers, certain markets exhibit significant potential for mass deployment of electric three-wheelers. “There is a large space to play for some of the three-wheelers in certain places like Somalia and northern Nigeria,” he explained. Despite these prospects, the researchers identify key challenges hindering the sector’s full-scale expansion, such as grid infrastructure limitations in rural areas, high capital costs, and delays in the deployment of favorable models by Asian manufacturing giants. Financing and investment issues in Africa, with high costs and rates, present additional hurdles for widespread adoption. “There’s also a lot of issues with financing and investment rates in Africa. Investment financing is often costly. For a company it’s at least 10–12% a year… For a user, the financing for a lot of these vehicles can be 30–50% a year which is quite high,” he added. Looking ahead, researchers project that, beyond the opportunities in commercial two-wheelers, battery swapping could emerge as a noteworthy trend on the continent. Notably, the industry is already experiencing rapid growth, with startups like Spiro and Ampersand making strides in the electric two- and three-wheeler market. In fact, despite less than 1% of two- and three-wheelers currently being electric in Africa, more than 60 startups are actively working to propel the industry forward. Other ongoing developments that will shape future trends include the adaptation of Asian products for the African market, with lead-acid battery-powered two- and three-wheelers designed for personal use and making early debuts in various countries. Additionally, the presence of significant natural gas reserves in some African countries, such as Tanzania, is prompting a reconsideration of conventional two- and three-wheeler models. Researchers highlight concerted efforts to encourage the use of compressed natural gas (CNG), liquified petroleum gas (LPG), or a combination of both in three-wheelers across these markets. “Africa still has a lot of economic growth ahead of it. We expect the growth of two- and three-wheelers to continue into the foreseeable future,” he concluded.
Read MoreMultiChoice has big ambitions for its Showmax 2.0 relaunch
This week, MultiChoice-owned streaming platform Showmax unveiled the content slate for the revamped version of “Showmax 2.0”. Due to launch in February, Showmax will feature 1,300 hours of original African content and the continent’s first standalone Premier League mobile streaming plan. With the relaunch, Showmax will build on the current momentum, which has seen it eclipse Netflix as the continent’s leading platform. The success of Showmax 2.0 will also bode well for parent company MultiChoice, which has been fighting off a plummeting share price, investment write-downs, market exits and the decline in subscribers of its bread-and-better service DStv. The pan-African broadcaster has invested heavily in Showmax 2.0. Announcing its end-of-year financial results in March 2023, MultiChoice stated that it would withhold dividends from shareholders to pour cash into the Showmax relaunch. The company also announced a further R500 million (~$27 million) investment into the relaunch in November 2023. “With subscriptions falling flat on their main offering (DSTV), streaming has picked up for them and everyone else,” Jimmy Moyaha, a Johannesburg-based markets analyst, told TechCabal. “Consumer demand for affordable, quality services will play a key role in the business’s success.” MultiChoice putting all eggs into Showmax MultiChoice has publicly stated its ambitious goals for the streaming service. It wants to make Showmax the biggest streaming platform on the continent, forecasting $1 billion in revenue in five years. Multichoice aims to have 50 million Showmax subscribers in the next five years, a 3,700% increase from its current 1.8 million subscriber count. Showmax still has a long way to go before it can translate the subscriber growth momentum into positive bottom-line figures. According to the market analysis publication Daily Investor, although Showmax had revenues in the region of R500 million (~$27 million) in the first six months of MultiChoice’s 2024 financial year, between November 2022 and November 2023, the service recorded a net loss of R1.41 billion (~$75 million), translating to a net loss margin of 144%. “Consumer demand for affordable, quality services is going to play a key role in the success of the Showmax” said Moyaha.
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👨🏿🚀TechCabal Daily – Seedstars’ $30 million fruit
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Safaricom is paying for its time. Literally. To make up for M-Pesa’s three-hour downtime on Tuesday which surprised everyone including regulators, customers were given cashback or airtime tokens ranging from KES20–KES100. If you didn’t get anything, you need to up your M-Pesa game so you too can reap the rewards of a telecom currying favour from probing regulators. In today’s edition Police identify more suspects in Patricia hack Amazon cuts down its Prime Video & MGM teams Three Nigerian banks get new board members EIB Global makes third Africa venture investment Funding tracker The World Wide Web3 Job Openings Cybersecurity Police nab 7 suspects linked to Patricia’s hack The Nigerian Police Force (NPF) has identified seven suspects who reportedly stole ₦142.8 million ($155,734) from fintech Patricia. If this sounds familiar, it’s because Patricia has been in the news for quite some time now. In May 2023, we revealed that the Nigerian fintech suffered a hack in 2022 which cost it $2 million in customer funds. The hack led to several customers being unable to withdraw funds. Patricia then tried several measures to placate its understandably angry users, including a botched app relaunch, a stablecoin backed by the dollar, and fundraising. In November the NPF arrested gubernatorial candidate William Bonse for the hack. According to the police, Bonse admitted his involvement in diverting ₦607 million ($760,000) of Patricia’s funds to his account. New developments: Techpoint reports that six more suspects, including a special assistant to a Nigerian governor, have been apprehended, while a seventh remains at large. Meanwhile, Patricia might still be struggling to repay its customers. CEO Hanu Fejiro had previously said customers would start receiving payments in batches on November 20, 2023, but it appears the process has been slow. 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. Global News Amazon cuts down its Prime Video & MGM teams Image Source: Innovation Village Heads up, streaming fans! Amazon is giving Prime Video and MGM a makeover, and that unfortunately means saying goodbye to some folks. The tech company is laying off hundreds of employees across Prime Video and the recently acquired Metro-Goldwyn-Mayer (MGM) Studios, because it wants to focus on creating high-impact content. This isn’t Amazon’s first rodeo when it comes to layoffs. Last year, the company laid off over 27,000 employees. In this round Twitch, Amazon’s live-streaming site, is also preparing to cut off 35% of its staff, after several top executives left the company in the final months of 2023. Amazon isn’t alone: Beyond Amazon, the broader streaming landscape is grappling with economic headwinds, prompting layoffs at industry giants like Disney and Warner Bros. Even tech behemoth Google isn’t immune; on Wednesday, it reportedly cut 1,000 employees from its voice assistant, augmented reality hardware, and engineering teams. This is in addition to the 12,000 let go in January 2023 and further cuts in its recruitment division last September. Why the persistent layoffs? Layoffs have been steady across the global ecosystem since 2022, with about 500,000 employees laid off since. The big question now is if companies should still be blaming these layoffs on the economic downturn, especially when profitable companies do it too. For context, Amazon’s profits more than doubled in 2023. These moves point to underlying factors like AI or a shift. This isn’t just about weathering the economic storm, it’s about asking if these layoffs are a smart play or just a quick cash grab with some nasty long-term side effects. Banking CBN appoints new board members for Nigerian banks Nigeria’s apex bank has appointed new board members for the three commercial banks whose boards it dissolved on Wednesday. Why the overhaul? The Central Bank of Nigeria (CBN) dissolved the board of directors of Union, Keystone and Polaris banks citing regulatory non-compliance and corporate governance failure. The dissolution and replacement of board members comes weeks after Jim Obazee’s investigation into the Central Bank under former Governor Godwin Emefiele’s alleged questionable bank acquisitions. Obazee’s report claims Emefiele used proxies to purchase these banks without evidence of payment. Who are the new appointees? Yetunde Oni takes over the helm of affairs at Union Bank alongside Mannir Ubani Ringim, the bank’s new executive director. Hassan Imam will head KeystoneBank as CEO, while Chioma A. Mang will play the role of Keystone’s executive director. Lawal Mudathir Omokayode Akintola will now lead Polaris Bank as CEO, and Chris Ofikulu will be its executive director. Lights out: The CBN appears to be increasing scrutiny and tightening regulatory controls over commercial banks since the appointment of its current governor, Yemi Cardoso. However, the recent dissolution of commercial bank board members is not a first in the country. In 2016, the CBN sacked the board of directors at Skye Bank for a failure to meet the regulated capital adequacy ratio, a measure of the bank’s capacity to handle financial risks. Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. Funding Seedstars Africa Ventures secures $30 million from EIB Global Image source: EIB Seedstars Africa Ventures, a pan-African venture capital firm, has secured a $30 million investment from EIB Global, an arm of the European Investment Bank. Maxime Bouan, Tamim El Zein, and Bruce Nsereko Lule launched the Seedstars Africa Ventures I fund in 2020, aiming to raise between $80 million and $100 million. They’ve already partnered with LBO France and Seedstars, secured $8 million from LBO France, and invested in companies like Poa Internet, Beacon, Shamba Pride, and Bizao. This new injection from the European Investment Bank adds even more fuel to their mission. Here’s what it means for African startups: Startups can
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2024 online steps for Nigerian passport application
The Ministry of Interior’s recent overhaul of the passport application portal brings significant changes to the Nigerian passport application process. The system now offers a seamless, almost fully automated experience from backend processing to frontend user interaction. The Minister of Interior, Olubunmi Tunji-Ojo, recently told and showed Seun Okinbaloye in an extensive interview and real-time display on Channels TV that the process is now almost fully virtual. He pointed out that biometrics and passport pick-up would be the only things that may require any Nigerian to visit the immigration office regarding passport application or renewal. He noted that Nigerian applicants who want 32-page passports with five-year validity would pay N35,000, while those who want 64-page passports with a 10-year validity would pay N70,000. Here are the comprehensive steps for a successful Nigerian passport application: 1. NIN verification on Nigerian passport application portal Step one to start your Nigerian passport application process is visiting the official website, which is https://track.immigration.gov.ng/ . Then enter and verify your NIN alongside your date of birth. Also ensure you enter the 4 digit Captcha in the space provided. If your NIN is valid, it will generate your data like you can see below. If it’s not, you’ll get an error message. 2. Select passport booklet type and processing office After your NIN verification, you will be able to continue to the next stage of your Nigerian passport application which is to select your Passport Type and preferred processing/collection state and office. Please note that 32 pages for 5 years is N35,000 and 64 pages for 10 years is N70,000. During the different processes, you will get a reference number pop up; please ensure you keep the reference number safe. You will need it to track your Nigerian passport application or production status. 3. Passport photograph upload After confirming your passport type, you go on to upload your photo. Please note that your photo must be 600×800 pixels (px). Also, your passport must have a white background. No other background color is acceptable. To avoid getting an error response from the automatic picture checker, here’s how to get your picture accepted quicker: If you already have a taken passport photograph on your phone or PC, you can’t just upload it because there’s a high chance it’s not the required size of 600×800px. So you have to first convert it. You can do the conversion on a website like Img2go. On Img2go, simply upload the picture, input 600 and 800 respectively in the boxes/spaces provided, and click START. After processing, just click download. Then your picture will be in the appropriate size and will easily pass the system check for your passport application. If you don’t have a clear clean passport on your phone or computer, you may be thinking of snapping a hardcopy passport picture you have for the upload. But the system will likely reject it for quality issues. But you can use your phone camera to take a passport photograph. Here’s how to take a passport photograph using your phone: Get a smartphone with a decent camera. Find a well-lit place. Ensure you’re not smiling with your teeth out. Simply keep a straight face without frowning. And don’t bend or tilt your body or head. Just stand upright facing the front properly. After that, you’ll want to get your picture on a white background. So you just need to visit a website like Photoroom and upload your picture. It will automatically remove the unwanted background, add a white background, and you simply download. Afterwards, follow the earlier explained way to convert the picture to 600×800px. Your photograph should be approved. 5. Fill in your personal details You’ll be required to enter your Personal Details such as marital status, occupation, and Email. Please note that details such as names, date of birth, state of origin and sex cannot be edited. Should you need to change any of those details, you will need to contact NIMC. 6. Submit your contact information Your Contact Information will be asked for. This includes your address, local government, email address, hometown, postal code, phone number, and the likes. 7. Present a Next of Kin Details of your next of Kin Information will also be requested. Their name, Address, phone number, and the likes. Your spouse, mum, dad, friend, relative or guardian could be your next of kin. 8. Upload Legitimacy documents to complete Nigerian passport application The penultimate stage is the Upload of Supporting Documents. The two important ones are the Birth Certificate issued by the National Population Commission or Declaration of Age from the High Court and Local Government Certificate of Indigeneship. Meanwhile, If you have a Non-Nigerian passport and hold dual nationality, you’ll need to upload the data page of your Non-Nigerian passport. Final steps and thoughts on Nigerian passport application Confirm the authenticity and readability of provided documents, make payment, and reserve a biometrics capture date. Keep the reference number generated during this process for tracking your Nigerian passport application/production status. The Ministry’s initiative aims to simplify and streamline the passport application process for Nigerian citizens, reducing the need for physical visits to the immigration office except for biometrics and passport collection. Afterwards, you’ll check the box that indicates that “I hereby confirm that all the documents I have provided are genuine & properly readable.” Then you go on to make your payment and reservation for the biometrics date. Then you start tracking your Nigerian passport application/production status.
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7 latest notes on the JAMB mock CBT 2024
Scheduled for the 7th of March 2024, the forthcoming Joint Admissions and Matriculation Board (JAMB) mock Computer-Based Test (CBT) exam holds significant importance in aiding candidates’ preparedness for the main examination. Here are essential aspects prospective candidates need to understand about the 2024 JAMB mock CBT exam: 1. JAMB mock exam Non-Refundable fee Candidates taking the mock exam must pay a non-refundable fee, usually set at around ₦1000. This year, the fee is payable along with the main JAMB registration fees. This fee covers the expenses of conducting the mock exam, and candidates are advised to confirm their intent before payment. 2. Flexibility in participation in the JAMB mock exam Sitting for the 2024 JAMB mock CBT exam is voluntary. While it’s not mandatory, it’s highly recommended as it familiarizes candidates with the exam environment and offers a chance to identify areas needing improvement before the main exam. Additionally, it allows candidates to visit their eventual exam centers with less pressure. 3. Different questions Although the mock exam mirrors the JAMB syllabus, its questions might differ from those in the main exam. This disparity underscores the importance of using the mock exam as an opportunity for practice rather than expecting identical questions in the actual test. 4. Time constraints Similar to the main exam, the 2024 JAMB mock test is time-bound. Candidates are expected to leverage this opportunity to refine their time management skills, aiming to complete each section within the designated timeframe. 5. Impact on the main JAMB exam? Contrary to misconceptions, the mock exam result doesn’t influence the main exam score. However, it serves as a vital tool for self-assessment, aiding in recognizing strengths and weaknesses for strategic improvement. 6. Strict device restrictions As the mock exam is treated akin to the actual test, strict regulations apply. Candidates are prohibited from using smart devices like smartphones, smartwatches, and tablets. It’s advisable to leave gadgets at home or have someone hold onto them during the exam. 7. Stay updated There are already stipulated dates and updates concerning the forthcoming JAMB 2024 exams. However, given the likelihood of date adjustments, candidates should stay connected to platforms like the JAMB official website or TechCabal for any alterations in exam dates. Remaining vigilant ensures timely awareness of any changes. Final thoughts on JAMB Mock exams 2024 The 2024 JAMB mock CBT exam serves as an invaluable preparatory tool. As such, it’s advised you take advantage of it if you can. The first step to your JAMB exam is to create your JAMB profile, and get your printout ready in preparation for the exam.
Read MoreNigerian Banking shakeup: Oni, Imam, Akintola take over Union, Polaris and Keystone Bank after CBN intervention
Nigeria’s Central Bank (CBN) has appointed new board members for Union Bank, Keystone Bank, and Polaris Banks following the dissolution of previous board members yesterday. The Central Bank of Nigeria (CBN) dissolved the board of directors of the three banks on Wednesday night, citing regulatory non-compliance and corporate governance failure. The apex bank also said they were involved in activities threatening their financial stability. According to a CBN announcement, a CEO and an executive director have each been hired for the affected banks to oversee the frameworks of the three banks. Yetunde Oni, a former CEO of Standard Chartered Bank, Sierra Leone, is the new Union Bank CEO alongside Mannir Ubani Ringim, the bank’s new Executive Director. Oni replaces Mudassir Amray, the previous Managing Director/Chief Executive Officer (MD/CEO) of Union Bank. Hassan Imam, an Executive Director of the North Directorate of Fidelity Bank, will head Keystone Bank as CEO. Chioma A. Mang will play the role of Keystone’s Executive Director. Imam replaces Olaniran Olayinka. Lawal Mudathir Omokayode Akintola, a director at Sage Grey Finance Limited, will head Polaris Bank as CEO, and Chris Ofikulu will be its executive director. Before this surprise announcement, Akintola had barely settled into his role at Sage Grey Finance Limited 10 months ago. Per the CBN, the appointment will take immediate effect. The dissolution and replacement of board members comes weeks after Jim Obazee’s investigation into the Central Bank under former Governor Godwin Emefiele’s alleged questionable bank acquisitions. Obazee’s report claims Emefiele used proxies to purchase these banks without documented payment. The recent dissolution of commercial bank board members is not a first in the country. In 2016, the CBN sacked the board of directors at Skye Bank for a failure to meet the regulated capital adequacy ratio, a measure of the bank’s capacity to handle financial risks. The Apex Bank revoked the bank’s licence in 2018, allowing Polaris Bank to take over the bank’s assets and liabilities. In 2021, the CBN also dissolved the board of First Bank of Nigeria after the board removed the managing director and chief executive officer without obtaining regulatory approval. The CBN has appears to be increasing scrutiny and tightening regulatory controls over commercial banks since the appointment of its current governor, Yemi Cardoso. This week, the Economic and Financial Crimes Commission (EFCC) reportedly summoned the heads of four Nigerian banks for questioning over potential irregularities in their foreign exchange transactions. *Additional reporting by Joseph Olaoluwa
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👨🏿🚀TechCabal Daily – Four streaming goals for AFCON
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Nigeria’s apex bank is starting the year in full swing. Late yesterday, the CBN sacked the board of directors of Keystone, Polaris and Union Banks, citing infractions and threats to financial stability. We’ve got the full story here. In today’s edition Woven shuts down Nigeria’s five biggest banks valued at $6.6 billion Kenya may fine Safaricom for M-Pesa outage MultiChoice, NTA and Canal+ to stream AFCON SA lawyer urges liquidators to pursue criminal charges against MTI The World Wide Web3 Opportunities Shutdowns Woven shuts down operations Woven Finance, a Nigerian fintech backed and financed by the Coronation Group has shut down. The fintech, which offered virtual accounts to business owners, communicated the closure in an email to its customers on Wednesday morning. Woven Finance was originally housed under Access Bank before a CBN directive forced a spin-off. The startup, which holds a Payments Solution Service Provider (PSSP) licence, was one of several bank-led attempts to compete in the fintech sector. It appears that deep pockets alone were not sufficient to guarantee success. In an almost ironic return to its roots, Woven Finance will transfer its services to Hydrogen, a fintech company owned by the Access Group. Zoom out: While GTCO’s fintech, Squad, is making inroads in the fintech space, the progress of other bank-led fintechs like Zest by Stanbic or even Acess Bank’s Hydrogen remain unknown. Dig deeper. 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 Safaricom may face penalties for M-Pesa’s outage Image Source: YungNollywood Safaricom may face penalties after M-Pesa’s unscheduled outage on Tuesday. The mobile payment platform, which 29 million Kenyans rely on, was unavailable for three hours on Tuesday. While Safaricom blamed the downtime on “scheduled maintenance”, it did not inform users beforehand. This isn’t Safaricom’s first outage, but Kenya’s Communications Authority (CA) may impose a fine for this incident. The CA classified M-Pesa’s outage as a “systemic risk to the country’s economy” underlining its crucial role in digital payments for Kenyans. With a 97% market share, M-Pesa has morphed into a national payment system, which makes it a critical part of the economy. This is not Safaricom’s first rodeo with the CA. In 2017, the CA slapped Safaricom with a h KES270 million ($ 1.7 million) fine for failing to meet the call quality standards. It remains to be seen what sanctions the CA will place on the telecom. Streaming MultiChoice will now broadcast AFCON GIF Source: GIPHY You can now watch AFCON matches on Supersports! In an interesting turn of events, MultiChoice-owned Supersports will now broadcast all 52 matches of the African Cup of Nations (AFCON) tournament. No gree: Multichoice previously announced that it had lost the broadcasting rights bid to a Togo-based platform, New World TV (NWT). While yesterday’s announcement comes as a relief to football fans who have been scampering for alternatives, it raises questions on how MultiChoice got the contested broadcasting rights. In the same vein, the Nigerian Television Authority (NTA) has also secured the rights to broadcast the upcoming African Cup of Nations (AFCON) tournament. NTA is collaborating with Afro Sports—an Afro-centric sports media broadcaster—to stream all 52 matches of the tournament. Similarly, Canal+ also secured rights to stream the tournament across francophone Africa. Where else to watch the AFCON: Startimes, SkySports, Viaplay, and BeIn Sports are among the available alternatives to watch the most prized football tournament on the continent. Also, French-speaking audiences can stream live on New World TV whose subscriptions cost about CFA 3,000 to 7,000 ($5–$18), a cheaper alternative to DStv’s $10–$40. Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. Markets Nigeria’s five largest banks valued at $6.6 billion GIF Source: GIFDB Nigeria’s stock market is soaring, and its top five banks are reaping the rewards. Five of the country’s largest banks—First Bank, Access Bank, United Bank for Africa (UBA), Guaranty Trust Bank (GTB), and Zenith Bank—now have market capitalisations of at least ₦1 trillion ($1.09 billion). A rising tide lifts all boats: The NGX finished 2023 strongly, led by oil and gas sector and the banking sector. Nigeria’s top banks reported record profits last year and investors seem to believe that this performance will carry over in 2024. The banking index experienced an 8.2% or ₦6.1 trillion ( $6.6 billion increase) at the close of Tuesday’s trading session, propelling Access Bank, UBA, and First Bank into the “trillion naira club,” where GT Bank and Zenith already hold strong positions with caps of ₦1.42 trillion ($1.5 billion) and ₦1.49 trillion ($1.6 billion), respectively. Bringing balance to the NGX: Analysts have raised concerns about the market being too dependent on a few large firms accounting for 66% of the NGX’s overall market value. With these additional banks reaching the trillion naira mark, their successes are contributing to a more balanced market. The boom across the NGX is finally paving the way for more tech startups to join the NGX tech board this year. In December 2022, Nigeria’s Securities and Exchange Commission (SEC) approved the rules for listing on the NGX tech board, but since the rules were introduced, no startup has been listed on Nigeria’s stock exchange. The big picture: Banking booms are great, but NGX sees the future: backing homegrown tech for a diverse, dynamic market that challenges one-size-fits-all tech giants. There’s more on this here. Sell with Paystack Storefront Increase your online sales with a Paystack Storefront – a free, beautiful seller page that helps you bring creative ideas to life. Learn more at paystack.com/storefront Cybercrime MTI Ponzi scheme faces prosecution and penalties Justice might finally be served for MTI’s 15,000 victims. The promoters and directors of
Read MoreCBN sacks board of three Nigerian banks weeks after Emefiele probe
The Central Bank of Nigeria (CBN) has sacked the board of directors of three banks, Keystone Bank, Polaris Bank, and Union Bank, in a meeting at Abuja, the nation’s capital. A high-ranking CBN official confirmed the development to TechCabal. Per the CBN, the affected banks committed infractions ranging from “regulatory non-compliance to corporate governance failure.” The apex bank said they were also involved in activities threatening their financial stability. The sack comes weeks after Jim Obazee, a special investigator appointed by President Bola Tinubu to probe the activities of the Central Bank under Godwin Emefiele, the CBN’s immediate past governor, claimed that Emefiele used proxies to acquire Union Bank of Nigeria for Titan Trust Bank Limited. Union Bank is now a private company one year after ₦191bn acquisition A statement from the CBN signed by its director of corporate communications claimed that the dissolution of the boards of the affected banks “became necessary due to the non-compliance of these banks and their respective boards with the provisions of Section 12(c),(f),(g),(h) of Banks and Other Financial Institutions Act, 2020.” Press Release: CBN Dissolves the Board and Management of Union Bank, Keystone Bank and Polaris Bank pic.twitter.com/HJmPs8bESD — Central Bank of Nigeria (@cenbank) January 10, 2024 Special Investigator’s report Jim Obazee’s report alleged that Emefiele’s proxies also acquired Keystone Bank and Polaris Bank without any evidence of payment. According to the report, Emefiele used two Dubai-based companies, Luxis International DMCC and Magna International DMCC, to set up Titan Bank. According to Section 3(5) of the Banks and Other Financial Institutions Act, both companies are not legally allowed to operate or acquire a bank in Nigeria. After Titan Bank was set up, the bank sought CBN’s no objection in 2021 to its proposed consolidation with Union Bank by acquiring 91.5% of Union Bank’s shares and an eventual merger between both banks. By 2022, Titan Bank had acquired 93.4% of Union Bank’s shares. According to the report, Keystone Bank was acquired by a special-purpose vehicle led by Isa Funtua and Emefiele and was financed by a N25 billion loan from Heritage Bank. The report also advised that the federal government takeover all four banks due to the “illegality” of the transaction. “We have completed our investigation on this acquisition and we are on the verge of recovering these two banks for the Federal Government,” a report by a special investigator said in December. *This is a developing story *An earlier version of this story stated Titan Bank was one of the affected banks. Recent communication from the CBN suggests Titan Bank was not affected.
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🚀Entering Tech #54: How Donald Yotay went from music to design
This 25-year-old dropped out to pursue music, and is now building a tech career. 10 || January || 2024 View in Browser In partnership with #Issue 54 How Donald Yotay went from music to design Share this newsletter Happy New Year people of ET To start 2024 off, we’re sharing the story of an Entering Tech reader who refused to gree for everybody. Donald Apakhade Ogah—or Donald Y.O.T.A.Y (ears Of The African Youth) —is a 25-year-old Nigerian who started his career in music, and is now building a tech career as a UI/UX designer. Our conversation with Donald started on X (Twitter) early this week when he shared his success story (and how we played a part ). So for today’s edition of #EnteringTech, Faith and I have invited Donald to write to you about his journey through music, network marketing, and tech. Here’s how Donald Yotay is hustling his way towards building an audio tech unicorn. by Timi Odueso & Faith Omoniyi Tech trivia questions Some trivia before we begin. Answers are at the bottom of this newsletter. Which African country has the most startups? From music to design I have documented my job search journey on LinkedIn and Twitter, and my goal is to share a well-rounded story. I hope that you gain one or two things that can apply to your job search, business, or brand. I started off studying computer science at the University of Lagos (UniLag), but in 2018, I dropped out in my third year to pursue my dream of becoming an artist. I won’t go into details on how that went, but by 2021, after years of being an artist without any sponsor or record label, I decided to look for ways to make money. This time, I tried network marketing. I believe that our dreams change, and we should allow ourselves to pursue new dreams. Donald Yotay By 2022, I switched roles again, and this time to tech—design. In a conversation about entering tech, my cousin, a full-stack developer, suggested I try product design. At the time, I didn’t even know what Figma was. But then I spent the whole of 2022 learning from free YouTube tutorials, Udemy and Coursera. I learned mostly UI design and had just a brief idea of UX design. *Newsletter continues after ad. Simplify with Rowvar Simplify property investment with Rowvar. Start here. A year later, I was ready for a job. In January 2023, I enrolled in a boot camp at Side Hustle to build an MVP for a startup idea, where I got my first taste of working on products. Recording/Performing Artist 2016 – 2020 Entrepreneur (Network Marketing) 2021 Product Designer, Freelance Apr 2022 – Dec 2023 UI/UX Design Intern, Analytics Intelligence Africa Jan 2024 – Present I created a portfolio, and got a mentorship on ADPList where I spoke to mentors from Tesla, HomeDepot, and American Express. There’s a lot I learnt from these mentors from creating my core values to identifying industries I wanted to work in, but one of the most critical things that would help me down the line was creating a unique portfolio. “The job market is saturated,” they told me. “And if you want to stand out, you have to create something that’s different, something you’re passionate about. This way, even when you’re speaking about it, your passion will show.” And that’s what I did. I created a portfolio that said something about my interests. In it, there’s a prototype for Moosic App, a music streaming platform that stems from my background as an artist (with songs being used in Nollywood films), a UX design for Google Chrome bookmarks, and even a brand design project for my sister’s scented candle shop. I designed things I was passionate about. A snapshot of Donald’s portfolio The work paid off. In November 2023, I clinched an interview with a construction startup that needed a designer for an app and a website. Did I get that job? Yup. But I declined because it didn’t align with my career objectives. My mentors advised that even greenhorns with no experience can still stand firm on their core values, preferred industries, and dream workplaces. They say No, I hear “NOTO” I didn’t relent though. I consistently reached out HR departments and even had another interview in December 2023, and in January 2024—this month— I received two job offers! These jobs might have come a year after I started job hunting, but the seeds were sown in September 2023 when I changed strategies. Here’s what I did: Starting in September, I started considering offline strategies for job hunting since the online approach wasn’t as fruitful. I shared my CV with everyone—friends, family even a bartender I once met. I would tell them to be on the lookout for UI/UX opportunities, and follow up with calls and texts. GIF Source: YARN Memes In October, I volunteered at a conference, SwitchCon Africa, and strategically snagged the “green room” access to chat with speakers. I shook hands, and collected LinkedIn details, Twitter handles, and even phone numbers from every single one! (You never know.) One of the speakers—Chide Idoga—I met would be instrumental in helping me get my first job. She was the only one who would contact me weeks later, forward my CV to the HR team at the company she worked for, and hint at a possible internship. I read an edition of #EnteringTech on the 3 Million Technical Talent (3MTT) Programme and I applied. At that stage, I had two job interviews but no job offer. I was torn; it was painful, but then I received news, in November, that I had been selected for the 3MTT programme. By December, I posted the new certifications I got as part of 3MTT on Twitter and LinkedIn and the posts got zero engagement, but I didn’t think about it too much. But then, on New Year’s Eve, Minister Bosun Tijani—who created the 3MTT Programme—himself validated my LinkedIn post.
Read MoreExclusive: “One or two” tech startups may list on the NGX tech board this year with rule changes imminent
The Nigerian Exchange Group (NGX) is positive that regulatory changes will incentivise homegrown tech startups to list on its specialised technology board this year. Africa’s second-biggest exchange is already speaking to startups looking to access local capital as venture funding declines globally. “There are a couple of startups that are considering listing,” Jude Chiemeka, acting CEO of the NGX, told TechCabal over a call. “We are hopeful to see one or two listings this year.” The NGX has held a series of engagements with the tech ecosystem to explain the benefits of being publicly listed. At a gathering of founders and venture capitalists in New York last September, Temi Popoola, the NGX GMD/CEO designate, tried to woo Olugbenga Agboola, CEO of Flutterwave, Africa’s biggest payments startup. Flutterwave is considering an Initial Public Offering (IPO) on the New York Stock Exchange. For the NGX, getting Nigerian startups listed has been a work in progress. In December 2022, Nigeria’s Securities and Exchange Commission (SEC) approved the rules for listing on the NGX tech board. The rules broken into two—Start-Up Tech and Big Tech segments based on market capitalisation—expect interested startups to meet corporate governance requirements, including registering as a public company and having shareholders and core investors with a track record. Yet a little over a year since the rules were introduced, no startup has been listed on Nigeria’s stock exchange. Most Nigerian startups haven’t caught up with the high level of corporate governance required to go public, Chiemeka noted. “The SEC is trying to ensure that investors are protected. While some of them [startups] have been raising capital from VCs, to access public capital requires a lot more discipline.” Iyinoluwa Aboyeji, founder of Future Africa, a Lagos-based VC firm, believes that listing on the NGX tech board “is a far more realistic exit strategy for startups” rather than waiting for secondary exits from global investors. “Companies who want to return capital should begin to align themselves with an exit on the local exchange,” he told TechCabal. While the Nigerian capital market has had a bull run in the last three years, with two of the hottest stocks last year being legacy tech companies—Chams Plc. and Computer Warehouse Group Plc.—it will take much more convincing to get startups listed. The volatility of the naira could be an issue. “There is a problem with the amount of liquidity available [on the NGX],” said Jude Dike, CEO GetEquity, a marketplace that helps startup founders raise venture funding from retail investors. “A startup that is trying to exit will be looking anywhere from $10 million, which is somewhere around 10 billion naira. How can we guarantee that such liquidity exists on the NGX?” Since Nigerian startups typically raise funds from foreign VCs and report their revenue in US dollars, listing on the Nigerian bourse might not be an option. For VCs, exits are how they justify the capital they raise from their funders. As one of TechCabal’s senior reporters, Abraham Augustine, argued in this piece, “Putting an African company—especially a company funded by American and European venture dollars—on an African stock exchange is a hard sell.”
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