Welcome to TechCabal Weekend Features!
More than being a global pop star, The Weekend is the time we use to catch up on all the shows that our pesky jobs don’t allow us to watch during the weekday. It’s also for reading delightful articles that make you sigh joyfully while sipping coffee/orange juice/beer/wine. Because, let’s face it, you’re really not going to read that article you bookmarked on Monday about understanding the intricacies of the Russian-Ukraine war. So this weekend, we’re bringing you two articles we guarantee will spark joy. The first is about what it’s like to build a tech company outside of Lagos, Nigeria’s commercial capital. It might not be something you often think about, but like Nigerian music, it’s difficult to “blow” outside Lagos. We spoke to three people building in Kaduna and Imo, and the story is worth every minute of your weekend. Read the story here. Our second delightful story for your weekend is from our newsroom editor, who abandoned us visited Johannesburg last week for the grand launch of the new Showmax. Pros of reading this article: Helping me meet my KPIs pictures of the MultiChoice office and also, paragraphs like this: For four days in the first week of February, the Showmax team went to great lengths to show its guests—journalists whose stock in trade is skepticism—who were in Johannesburg for a grand launch, how much it believes in its ability to crack Subscription Video On Demand (SVOD) in Africa. Read the story here. Here’s what you can expect from future editions of TechCabal’s Weekend Features: Long-form content: These aren’t your bite-sized news stories; these Weekend Features will include well-researched, long-form stories that promise to keep you engaged for the weekend. Finding hidden gems: Learn more about the startups tackling the continent’s challenges in ways you never thought possible. Going beyond the hype: Dive deep into the intricacies and social impact of emerging technologies. Meeting the masterminds: Get exclusive insights from the incredible people driving the ecosystem forward, especially the underdogs. TC’s Weekend Features is more than just reading; it’s an experience. We promise to keep you busy and interested with visually compelling storytelling, weaving together data, personal narratives, and expert opinions to create stories that inform, inspire, and entertain. Join us every Saturday as we explore untold stories that fuel Africa’s tech revolution in visually engaging ways.
Read MoreWasoko merger fallout: employees claim startup hid deal for six months
Wasoko, a Kenyan e-commerce platform, did not share its merger plans with Egypt’s MaxAB with employees for over six months, fearing that leaks could scuttle the transaction, two former employees told TechCabal. The merger is expected to be completed by the end of March 2024. The B2B e-commerce startup, which was founded in 2013 and raised over $140 million from investors like 4DX Ventures and Avenir Growth Capital, first told employees about the merger in a video call attended by the MaxAB executives in early December 2023, the same month the deal was announced. The meeting, which was not recorded, surprised many employees, although some had figured out there were plans for a merger and eventual redundancies. On January 15, Wasoko laid off over 100 employees across engineering, product, and business intelligence departments in Kenya and India. Following the layoffs, nine employees sued Wasoko, claiming they were unfairly fired. They argued the company did not give them sufficient time to prepare for their exit and that while Wasoko said it would follow local labour laws during the layoffs, it was a way out of paying them sufficient severance. The severance package compensated employees based on how long they had worked with the company, how many leave days they had accrued, and the number of days left before their January 15th exit. The former employees told a court that the severance package favoured those who had been with Wasoko for an extended period. Wasoko and MaxAB say merger will create a clear e-commerce leader with tens of millions of runway The court has blocked Wasoko from firing the nine employees. Other employees said they had taken bank loans, believing their work with the e-commerce platform was secure. Wasoko said it would discuss the matter with its banker, Standard Chartered, and ease repayment for six months, said one former employee. It also promised to provide health insurance coverage until March 2024. Exclusive: Flutterwave gets court order to recover $24 million lost to unauthorized POS transactions “We initiated notice of intention to declare redundancies for a portion of our staff on December 5, 2023 as previously announced.” Wasoko said in a statement to TechCabal. “Impacted employees were provided with the legally mandated period of notice and are receiving the required severance packages as stipulated by applicable employment law.” However, the company declined to comment on specific claims since the matter is already in court. Following the lawsuit, Wasoko has prepared an exit document barring employees from suing the company after receiving their exit packages, one person told TechCabal. The case will be heard in court on February 13th.
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👨🏿🚀TechCabal Daily – Leatherback’s pushback
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Tomorrow, TechCabal will be launching a new weekend series. For our audience who enjoy long-form feature articles, we promise to hook you up. Every Saturday, we will publish one story to keep you engaged during the weekend across a variety of topics. If you want to get tomorrow’s edition, sign up to TC Scoops and we’ll send you an alert as soon as it’s published. In today’s edition Flutterwave moves to recover lost $24 million Leatherback CEO sues EFCC after “defamation” incident Kenya has a new AI bill Ethiopia will ban non-electric cars Funding tracker The World Wide Web3 Opportunities Cybercrime Flutterwave to recover $24 million lost to unauthorised POS transactions Last month, we wrote about financial institutions coming together to fight fraud. Our exclusive today will tell you why they have good reason to. African fintech giant Flutterwave is seeking to retrieve $24 million illegally transferred in October 2023 through a combination of a “technical glitch” and potentially fraudulent activity by POS merchants. Following a High Court ruling on February 1, the fintech company will reach out to over 6,000 account holders across 35 banks and financial institutions involved in the unauthorised transactions. The incident: On October 10 2023, a technical issue caused unauthorised transfers from a Flutterwave client to over 6,000 accounts across 35 banks and fintechs. Flutterwave quickly alerted the institutions, temporarily suspended the affected accounts to prevent further losses, and offered the institutions indemnity for reversing the transfers. Now, a recent High Court ruling will allow Flutterwave to contact account holders via email, SMS, and WhatsApp messages, with assistance from a recovery agency to recover the funds, according to court documents KYC in focus: Amidst increasing fraud attempts in Nigeria’s financial sector, the Central Bank of Nigeria has mandated stricter KYC measures. These require customers’ Bank Verification Number (BVN) or National Identification Number (NIN) for account opening by March 2024, alongside plans to introduce new security features on Point of Sale (PoS) terminals. The success of Flutterwave’s fund recovery efforts hinges on accurate customer information held by banks and fintechs, highlighting the importance of robust KYC protocols. 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. Fintech Leatherback CEO sues EFCC for defamation After three months of turmoil, Ibrahim Ibitade, CEO of Leatherback, a cross-border payments startup that operates in seven countries, has successfully cleared his name following an intense episode with Nigeria’s anti-graft agency, the EFCC. Ibitade deemed the EFCC’s actions “bullying” and is now seeking accountability for the agency’s lack of due diligence. Here’s what happened: In September 2023, rumours were circulating that Leatherback lost money to SDQ Facilitators—an unregulated Nigerian currency trading company. Leatherback denied the rumours, but an EFCC investigation into SDQ Financials was launched. The investigation revealed that SDQ used Leatherback’s naira and USD wallets, but Leatherback claims they were unaware of any fraudulent activity. Subsequently, in November 2023, the EFCC declared Ibitade wanted for allegedly conspiring to obtain money under false pretence and posted a now-deleted photo of him on their Instagram page. CEO fights back: In November, Ibitade denied that he was hiding from the EFCC and has now stated that he has been cleared of any wrongdoing. The agency deleted their Instagram post of Ibitade after two petitions from Leatherback, and now, the payments company is suing the EFCC for defamation and wants them held accountable for their actions. Leatherback says it will continue its trajectory towards success, as the company claims it processed $500 million in monthly transactions by June 2023 and was nearing the $1 billion mark before the EFCC episode. 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. Regulation Kenya to penalise unregistered AI firms with $6,250 fine Kenya, a nation at the forefront of African tech advancement, has proposed an AI and robotics law that includes fines of up to $6,250 for unlicensed businesses. The Kenya Robotics and Artificial Intelligence Society Bill 2023 introduced the fine to regulate and support the growing sector. The bill also outlines the establishment of the Robotics Society of Kenya (RSK), a proposed regulatory body empowered to issue licences and levy the $6,250 fine on unlicensed businesses. Failure to comply could even land offenders in jail for two years. This body will also advise the government on emerging trends in AI and robotics. Innovation booster or tax grab? The proposal has sparked discussions among AI enthusiasts and advocates, who view the law as a “severe threat to innovation and growth” and believe that it is merely another avenue for the government to create unnecessary bureaucracy and generate revenue. This isn’t the first time Kenya has faced such criticism. In 2022, a similar proposal to regulate ICT professionals was shot down by the then-president, Uhuru Kenyatta, after it faced immense pushback for creating excessive hurdles and stifling freelance work in a sector already struggling with a talent shortage. AI in Africa: The AI sector is growing across Africa. Of the 2,400 AI companies on the continent, as of 2022, 40% were established in the previous five years. If Africa captures even 10% of the global AI market, analysts predict a staggering $1.5 trillion boost to its GDP by 2030. For other African countries, Mauritius was the first country in Africa to publish a national AI strategy in 2020. In 2021, Egypt launched its national AI strategy to deepen the use of AI technologies and transform the economy. In 2023, the Nigerian government invited global AI researchers of Nigerian descent to collaborate on the national AI strategy. Mobility Ethiopia to ban importation of non-electric cars Ethiopia is making headlines
Read MoreBreaking: NCC withdraws disconnection notice on Glo after N2bn interest payment to MTN
The Nigerian Communications Commission has lifted a disconnection notice placed on Globacom after it reached an interest payment agreement with MTN Nigeria. Both telcos ended a 15-year-long dispute over interconnection fees after MTN agreed to accept N2 billion in interest payments instead of the original sum of N3 billion, TechCabal exclusively reported this week. Globacom had initially paid N1.6 billion as the principal debt but had disputed the interest accrued on the debt, a source close to the matter told TechCabal. This prompted the NCC to set a timeline of 21 days for both parties to agree on the interest amount and when it would be paid. The NCC intervened to prevent any possible disruptions to the over 61 million subscribers on the Globacom network. “The Commission reiterates that strict adherence to the terms and conditions of licenses, particularly those delineated in interconnection agreements, is imperative for all Mobile Network Operators (MNOs) and other licensees within the telecommunications industry,” said the NCC statement. Henceforth, mobile network operators must submit records and regular updates regarding interconnectivity to the NCC. The commission also said it would adopt a transparent approach towards industry indebtedness.
Read MoreExclusive: Flutterwave gets court order to recover $24 million lost to unauthorized POS transactions
Flutterwave, Africa’s most valuable startup, will contact over 6,000 account holders across 35 banks and financial institutions to recover ₦19 billion (*$24 million) illegally transferred by POS merchants after a High Court ruling on February 1. “In 2023, we discovered that certain POS device merchants abused their access by conducting unauthorized transactions. In response to this, we temporarily suspended the accounts where funds were improperly transferred,” Flutterwave said in a statement to TechCabal. The company insists that no customer funds were lost. The February order —a Mareva injunction— lets Flutterwave recover the funds and assets of the identified account holders, which is crucial because the account holders may have spent the funds received in October 2023. “We continue to actively engage with the relevant authorities to investigate and address the situation,” Flutterwave added. An earlier court order placed debit restrictions on those accounts two months after the incident, court documents obtained by TechCabal show. Per the most recent order granted on February 1, 2024, 35 financial institutions, including Opay, Paga, Palmpay, Access Bank, VFD Bank, Zenith, Polaris and Providus Bank, must share the email addresses and telephone numbers of the account holders. Flutterwave will contact the over 6,000 account holders “through their respective email addresses and by SMS and Whatsapp messages to their respective telephone numbers,” per court documents seen by TechCabal. The fintech company may use a recovery agency for this, a lawyer familiar with similar processes told TechCabal. A timeline of the incident “On 10th October 2023, there was a technical glitch in our client’s operating system, which resulted in funds being automatically transferred to the bank accounts of customers listed in Schedule A of this memorandum,” a letter from Flutterwave’s lawyers said. Immediately after the “technical glitch” was discovered, Flutterwave contacted the bank and fintechs, notifying them of the glitch and the resulting erroneous funds transfers. “The merchants listed did not provide any service to our client and were not entitled to funds that were erroneously transferred and have continued to keep said funds,” the letter from Flutterwave’s lawyers added. Flutterwave also offered indemnity to the banks if they reversed the erroneous transfers. Typically, a reversal request would require the receiving bank to also go to court to seek further approval. Flutterwave incident highlights the importance of KYC The success of Flutterwave’s recovery efforts will depend on financial institutions like Opay, Palmpay and Moniepoint having accurate customer information. It also relies on banks having up-to-date information on their customers. However, recent fraud incidents show this may not always be true. Neobanks, in a drive to boost financial inclusion, have popularised easy-to-open accounts with lax KYC requirements, and traditional banks do not necessarily have accurate information either. For instance, customers are not mandated to tell their banks when they change addresses, emails or phone numbers. These KYC troubles are happening while there’s also a significant rise in fraud attempts in Nigeria’s financial services industry, and traditional banks have placed the blame on the neobanks. Fidelity Bank, a commercial bank that holds ₦3.1 trillion ($2.1 billion) in customer deposits, blocked transfers to several neobanks over concerns that neobank wallets and accounts were an easy way to move monies that had been fraudulently obtained, TechCabal reported in October. In December, the Central Bank of Nigeria mandated all financial institutions to implement stricter Know Your Customer (KYC) measures, requiring all customers to provide their bank verification number (BVN) or a national identification number (NIN) for account or wallet opening by March 2024. *Additional reporting by Ngozi Chukwu * The exchange rate in October 2023 was $1 = ₦789 Customers report frozen accounts over illegal transfers from Flutterwave Exclusive: Flutterwave denies being breached for a second and third time even as it pursues legal action to recover funds
Read MoreAirtel Africa pushes infrastructure expansion with investments in 2Africa cable and IHS
Airtel’s plans to significantly boost its telecom infrastructure across the continent to grow its market share see the company investing in Meta’s submarine cable and strengthening old partnerships. After seeing a 1.4% revenue decline within nine months in the connectivity business, Airtel Africa is pushing to correct this trend by entering into infrastructure expansion collaborations with companies like IHS Towers and investing in the 2Africa cable network system. The deal with IHS Towers allows Airtel Africa, through its subsidiary Airtel Nigeria, to take 3,950 tenancies over the next five years. Airtel Africa also extended the term of its existing tenancies covering approximately 6,000 tenancies until December 2031. The agreement includes 2,500 collocations in addition to 5G amendments and build-to-suit sites to be owned and operated by IHS Nigeria. Taking tenancy at a tower site is part of the strategies telecom operators use to curtail or reduce the cost of operating the business. Also, telcos that own tower sites often deal with tower companies like IHS or American Tower Company to lease and manage them. For example, MTN Nigeria is the biggest client IHS has. “Airtel Nigeria, as well as Airtel Africa we serve in other markets in Africa, has been a long-term partner of IHS, and I am delighted that we continue to strengthen our collaboration to help facilitate mobile connectivity in our largest market, supporting our customers in rolling out new sites throughout Nigeria,” said Sam Darwish, chairman and CEO, IHS Towers. The telco has also launched Telesonic Limited, a subsidiary that will use Airtel’s ground fibre assets and submarine cable systems to meet the growing demand for wholesale data in Africa. The subsidiary will offer comprehensive terrestrial fibre and submarine cable solutions. Apart from managing Airtel’s extensive fibre network (75,000km of terrestrial fibre) across the continent, Telesonic has also invested in Meta’s 2Africa submarine cable system. 2Africa is one of the largest submarine cables interconnecting 33 countries in Africa, the Middle East, and Europe. The 45,000km cable was landed in Accra, Ghana and Lagos, Nigeria this January by the Bayobab Group, marking the third and fourth in a series of six landings from the 2Africa subsea cable system. 2Africa’s successful landing in Lagos brings the number of submarine cables to eight that have so far landed in Nigeria. “No doubt, Africa is experiencing a digital revolution, with surging demand for data centres across various sectors, especially by the continent’s growing youth population. With robust and scalable infrastructure, we aim to bridge the digital divide and unlock opportunities for innovation and economic growth. Our investment signifies not just a technological advancement but also a catalyst for progress, connecting people and ideas across borders,” said Segun Ogunsanya, Group CEO, Airtel Africa. Airtel is also concluding plans to break ground on its mega data centre, known as Nxtra, in Lagos, Nigeria in March. The facility will be designed to host high-density racks and integrate the latest practice construction to achieve a 1.3 power usage effectiveness (PUE). The data centre which will go live in mid-2025 will also deliver 34 megawatts of total power, making it the first of its kind in Nigeria. Airtel told TechCabal that the data centre will be industry-agnostic, hence any company from any sector can host their data in the facility.
Read MoreKenya’s AI and robotics bill proposes a $6,250 fine for unregistered entities
Per experts, the proposed AI and robotics law is an avenue for the Kenyan government to introduce more taxes to the people. The Kenya Robotics and Artificial Intelligence Society Bill 2023 seeks to introduce fines of up to KES 1 million ($6,250 according to the current exchange rate), a prison sentence of up to two years, or both on unlicensed entities operating robotic and AI businesses if they fail to register their organisations with the Robotics Society of Kenya (RSK). Part of the bill reads, “The Society may grant the licence applied for subject to such terms and conditions as the county executive committee member shall consider appropriate.” It adds, “A person who contravenes the provisions of (the section) commits an offence and is liable, on conviction, to a fine not exceeding one million shillings.” The RSK is a proposed body that will oversee and support the growth of the robotics and AI sector by creating rules and guidelines with other authorities. It will also ensure that companies follow these rules and provide advice to the government on new trends in AI and robotics. The proposal, introduced to lawmakers in parliament in November 2023, has been controversial and has attracted heated discussions among AI enthusiasts and advocates in the country. According to AI Kenya, an initiative that seeks to democratise and support the growth of data science and robotics in the country, the bill poses a “severe threat to innovation and growth of the vibrant tech ecosystem”. Elizabeth Mutua, a lecturer at Dedan Kimathi University of Science and Technology, said that the proposal is another avenue for the government to create new offices and taxes without proper AI legislation. “We need a proper law to regulate AI and emerging technologies,” she told Business Daily. The bill is akin to the shelved ICT practitioners bill that parliament passed in June 2022. Then-president, Uhuru Kenyatta, declined to sign the bill into law after multiple complaints from the ICT industry since it created obstacles in a field that lacked enough skilled workers and added expensive bureaucracy for freelance ICT workers. The proposed law further blocked self-taught people from offering ICT services, which could then stifle innovation. The bill suggested that ICT professionals in the field must have a degree to work. The bill sought to create an institute to register and licence ICT professionals, approve their education, and conduct exams. It also set a minimum qualifications for certification; otherwise, they would not be able to work.
Read MoreLeatherback CEO Ibrahim Ibitade sues EFCC for defamation after he was wrongly declared wanted
Ibrahim Ibitade, the CEO of Leatherback, a cross-border payments startup that operates in seven countries, is suing Nigeria’s Economic and Financial Crimes Commission (EFCC) for defamation after the agency declared him wanted three months ago without “conducting due diligence.” In November 2023, the antigraft agency declared Ibitade wanted for allegedly conspiring to obtain money under false pretense. An Instagram post of Ibitade on EFCC’s official handle has now been deleted after two petitions from Leatherback. “We have instituted an action against the EFCC, and we are already in court for defamation of character,” Ibitade told TechCabal. Ibitade characterised the EFCC’s action as “bullying” and an attempt to see if his company would roll over, and he asked that the anti-graft agency be made to answer for their actions. “There have to be consequences because it almost put a dent in what we are building at Leatherback over the last five years,” he added. A spokesperson for the EFCC declined to comment. From zero to N15 Trillion in transactions: Hydrogen’s plans for Nigeria’s bustling payments space SDQ Financials and an EFCC investigation The company originally at the heart of the EFCC’s investigation was SDQ Financials, an unregulated entity that lost billions in client funds in questionable FX deals. Some of those funds were received using Leatherback’s service. The fintech startup has repeatedly insisted that while SDQ Financials used its Naira and USD wallets, it did not know about the alleged fraudulent deals. Exclusive: How Float’s lucrative but risky FX trades led to ₦5 billion in losses While Ibitade didn’t offer details about the amount the EFCC is trying to recover from SDQ Financials, he believes some of the funds in the question may no longer be recoverable because of the way the EFCC went after him instead of following the money trail. While the EFCC incident was unpleasant for the company, Ibitade is already looking forward and remains bullish on the Nigerian market. “We have gone through the phase with the EFCC, and at no point did we shut down our business. As a global business, we did not structure ourselves in a way one country would pull our business down. At the same time, Nigeria is significant for us,” Ibitade added. Leatherback says it processed $500 million in monthly transactions by June 2023 and was nearing the $1 billion mark before the EFCC episode.
Read MoreMultiChoice reaches $37 million tax settlement with Nigeria tax authorities
Pan-African broadcaster MultiChoice has paid $37 million to Nigeria tax authorities for tax charges brought forward in 2021. MultiChoice will pay ₦35 billion (~$37 million) to Nigeria’s Federal Inland Revenue Services (FIRS) to settle a three-year tax dispute. In June 2021, the tax authorities accused MultiChoice of a ₦1.8 trillion ($4.4 billion) tax fraud and ordered the freezing of the company’s bank accounts. “In terms of the agreement, [MultiChoice Nigeria] and [MultiChoice Africa] shall pay a total tax amount of ₦35.4bn (~US$37.3m), to be offset against the security deposits and good faith payments made to date,” MultiChoice said in a statement to shareholders this morning. MultiChoice has paid a total of $56 million to settle the claim. Despite the payments, the broadcasting giant has always insisted it did nothing wrong. In August 2021, it filed an appeal contesting the ₦1.8 trillion tax bill with the Tax Appeal Tribunal. The tribunal ruled that the broadcaster pay half the amount and MultiChoice paid a $19 million deposit. By March 2022, MultiChoice and FIRS had “agreed to an amicable resolution of the pending tax matters.” Consequently, MultiChoice withdrew all existing lawsuits while the FIRS conducted a forensic audit to reach an accurate determination of the company’s tax liability.
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👨🏿🚀TechCabal Daily – High on Hydrogen
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Congratulations to Nigeria and Côte d’Ivoire WhatsApp is treading routes Apple has barred. The company is proposing a new feature that will allow WhatsApp users send messages, images, videos, anything really, to users on other messaging apps like Telegram, Signal and yes, even iMessage. While this move—which is forced by a new EU law—sounds revolutionary, it all depends on the other messaging apps agreeing to the service. And we can already guess Apple’s response: “No”. The tech behemoth recently shut down one messaging app that allowed non-Apple users access iMessage. It’s also fighting the same EU law that mandates it to share its iMessage technology with other companies. In today’s edition Inside Hydrogen’s big plans Vodacom to appeal $1 billion case Microsoft announces new cloud centre in South Africa Telecel secures $20 million investment Apple is building a foldable iPhone The World Wide Web3 Opportunities Fintech Inside Hydrogen’s big plans In Nigeria’s tech space littered with fintech startups, there is a new kid on the block with ambitious goals. Hydrogen, a spin-off from Nigeria’s banking giant, Access Hold Co, was launched in 2022 with a vision to become Africa’s most powerful payment business network. The payment startup caters to small and medium enterprises (SMEs) and large businesses. It provides these businesses with POS terminals, payment links, and a payment gateway that allows merchants to receive payments via their website. Hydrogen also offers Insta Pay—an app that allows businesses monitor real-time transactions across multiple outlets. The fintech which competes in the same market as Paystack, Flutterwave, Moniepoint, and GTCo’s squad is betting on its infrastructure as a stand-out feature. So far, Hydrogen claims to have processed over ₦15 trillion ($10.6 billion) since its launch in 2022. Here’s how Hydrogen plans to compete with other fintechs. 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 Vodacom to appeal $1 billion case In 2000, faced with communication roadblocks in his long-distance relationship, former Vodacom employee Nkosana Makate invented the “Please Call Me” idea, sparking a 15-year legal battle with Vodacom. Now, the telecoms giant is taking Makate to the Constitutional Court after losing its appeal. This comes after the Supreme Court of Appeal ordered Vodacom to pay Makate R20 billion ($1 billion) for inventing the service. What legal battle? After Makate came up with the “Please Call Me” idea in 2000, the service was launched in 2001 and became a South African staple, allowing users to request callbacks via free text messages. In 2007, a few years after leaving Vodacom, Makate submitted a letter to the company requesting compensation, but his letters went unanswered, and he sued in 2008. There were attempts to settle after a court order in 2016, with Vodacom’s CEO offering Makate R47 million ($2.4 million). Makate rejected the offer, leading to further litigation. In February 2022, the High Court set aside Vodacom’s offer and ordered Vodacom to reconsider the settlement offered to Makate. What now? Now, with the recent ruling, the court has instructed Vodacom to reassess compensation for Makate within 30 days, and the compensation is to range between 5% and 7.5% of the total voice revenue from the service over the past 18 years, along with interest. Makate is also entitled to 27% of revenue from daily messages sent via “Please Call Me” as revenue from return calls. The judgment amount is 10% of Vodacom’s market capitalisation. Vodacom has expressed its disappointment at the judgement and will appeal to the Constitutional Court. 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. Big Tech Microsoft to build new data centre in South Africa Microsoft is pushing forward in the scramble for Africa’s cloud goldmine. The tech giant has announced its plans to build a new data centre campus in Kosmosdal, South Africa. Microsoft’s push comes shortly after Google opened its first cloud region in Africa last week. Africa’s cloud boom: With Africa and Europe’s global cloud value share estimated to be $797 billion by 2025, major players like Microsoft, Google, and Oracle are flocking to the region. Still, in 2025, the International Finance Corporation (IFC) predicts that the continent’s internet economy will surge to $180 billion. However, strict data residency regulations in many African countries, like those in Algeria and Kenya, require foreign tech giants to establish local infrastructure. This has become a key driver for companies like Microsoft to build data centres within the continent, highlighting the competition for cloud dominance. Why is this important? While the cost of greenfield data centres reportedly ranges from $7 million to $12 million per megawatt of commissioned IT load, the potential returns for a continent like Africa, where demand for cloud computing services is increasing at an annual rate of 25% to 30%, go beyond infrastructure. The expansion is expected to generate more job opportunities, enhance skills, and empower businesses in South Africa. Microsoft’s new facility adds to the growing number of data centres from various providers like Amazon Web Services (AWS) in South Africa. This will also be Microsoft’s third cloud centre in South Africa after its 2019 and 2022 launches. Funding Telecel secures $20 million investment The Africa Credit Opportunities Fund (ACOF) and Telecel Group have invested $20 million into Telecel Global Services. The investment will fuel the telecom’s growth aspirations of expanding across West Africa. Telecel? This collaboration comes shortly after Vodafone Ghana announced its rebrand to Telecel Ghana earlier this month, following a 70% stake acquisition in 2023. In October 2023, Telecel announced that it had successfully expanded Vodafone Ghana’s network infrastructure by adding 300 new 4G sites, most of which had already been activated
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