Former US agent identified as Binance executive detained in Nigeria
Tigran Gambrayan, an American citizen and former US federal agent, has been identified as one of two Binance executives detained by the Nigerian government since February 26, per a report from Wired. Gambrayan, who leads the Binance criminal investigations team, was arrested alongside a yet-to-identified colleague in Abuja, following a crypto crackdown by the Nigerian government. Gambrayan and his colleague arrived in Nigeria one week after telecom companies were told to block the websites of several crypto exchanges. According to several reports, they were arrested on their arrival in Abuja, with their passports seized. The government has shared very little about their arrests, and it is unclear if they have or will be charged in court. Their arrests are in connection with a push by the Nigerian government to halt speculation on forex trading, following volatility in the price of the naira. After a decision to remove artificial controls, the naira’s plunge only worsened. Regulators have historically blamed those plunges on speculators. At one point, it blamed Abokifx, a website that published FX rates. The Central Bank has also pointed fingers at Bureau de Change operators and the banks. Several policy changes by Olayemi Cardoso, the CBN chief appointed last year, have purportedly aimed to stop such speculation. Of these speculators, none has quite been treated like Binance. In a press briefing after a February monetary policy meeting, Cardoso claimed $26 billion of suspicious monies had passed through Binance. It provided a justification for the government to make the arrests. Several reports claimed the government asked for data on Binance users, while claims of a $10 billion fine were later denied. The global crypto exchange has responded by suspending all trades in naira but has not publicly responded to the arrests otherwise. “There’s no definite answer for anything: how’s he’s doing, what’s going to happen to him, when he’s coming back,” Wired quotes Gambaryan’s wife, Yuki Gambaryan, as saying.
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👨🏿🚀TechCabal Daily – Data breach rocks SA’s upcoming elections
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Please move TC Daily to your main folder so you don’t miss any emails from us. That’s all the wit we can muster up in this heat, folks. Onto the meat of the matter. In today’s edition IEC breach rocks SA’s upcoming elections Can ex-Paystack employees conquer Nigeria’s delivery market? Uber denies breaching Lagos’ data laws NITDA warns Nigerians about new malware The World Wide Web3 Opportunities Cybersecurity IEC data breach rocks South Africa’s upcoming 2024 general elections South Africa will hold its seventh general election on May 29, 2024. To participate in the elections, many political parties and independent candidates have submitted nomination requirements in line with the amended Independent Electoral Commission (IEC) regulations on March 8. Last week, the Labour Party, a newly registered political party, took the IEC to Court to compel the agency to extend its March 8 deadline. The party argued that failing to extend the deadline would compromise the integrity of the election, rendering it neither free nor fair. However, the court dismissed the application because the Labour Party hadn’t contacted the IEC about the issue or filed a dispute, and the challenge came only at the deadline despite the electoral timetable being published on February 25. So all is well? Not quite. On March 9, the Information Regulator (IR) confirmed a data breach in the IEC that exposed candidate lists for the African National Congress (ANC) and Jacob Zuma’s MK Party. Unauthorised individuals gained access to the candidate lists before they were officially released and personal information like ID numbers of the candidates are now in the public domain. The IEC has since reported the incidents to the IR. What’s the IR saying? The IR informed the IEC that their reports violated POPIA (Protection of Personal Information Act) due to insufficient information. The IR has also mandated the IEC to provide details regarding the breaches, including evidence of notification to the ANC and MK Party about the leaks, the extent of individuals impacted by the leaks, and the methods through which unauthorised individuals gained access to the data. This is a developing story. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Startups Can ex-Paystack employees conquer Nigeria’s delivery market? Three months after major players like Jumia and Bolt exited Nigeria’s food and grocery delivery segment, a new player—GoLemon— has emerged as a fresh contender to compete with YC-backed Chowdeck, and Glovo in the market. Despite market exits by Jumia and Bolt, former Paystack executives have confidently ventured into the delivery sector with GoLemon, a new startup delivering groceries and household items. The startup is led by Stripe-owned ex-Paystack employees: Yinka Adewuyi, Gbadegbo Gbade-Oyelakin, Abdulrahman Jogbojogbo, and Abiola Showemimo—all of whom were at Paystack for at least six years. According to Jogbojogbo, GoLemon was purposefully crafted to focus on customers who frequently make repeat purchases and have large orders. The team will lean on Showemimo’s background as a Lagos-based supermarket owner and Gbade-Oyelakin’s tenure as head of engineering at Supermart, an online grocery platform, to drive the business forward. Here’s why the ex-Paystack crew is betting on a grocery delivery business. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Regulation Uber denies breaching Lagos data laws Yesterday, we brought you news of the Lagos state government threatening to sanction Uber for failing to supply records of users’ and trip information The ride-hailing company has fired back, claiming that it is in full compliance with rules set by Nigeria’s largest city. “We have met Lagos State’s regulatory obligations, including an annual fee, per-trip levy, and data sharing requirements,” the company said in an email to TechCabal. Lagos, in 2020, signed an “essential data sharing agreement” with Uber, mandating the company to provide trackable information about its riders and drivers for the security and safety of its citizens. The regulations were not Uber’s first dance with the Lagos statement government. In 2016, Uber shared the information of 11.6 million passengers and 600,000 drivers with the government and claimed the data points were sufficient enough for regulators to carry out their duties. However, the Lagos state government was out for more blood, requesting the ride-hailing company for more data in 2020. While the regulation might have a security-facing motive, speculation persists that Lagos might also be interested in identifying potential tax sources within its population. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → Cybersecurity NITDA warns against new malware Keep your purses phones safe, there is a new thief in town. Yesterday, the National Information Technology Development Agency (NITDA) raised an alarm about a sneaky malware program stylised “Ov3r Stealer” that’s targeting Facebook accounts and extracting sensitive information. Think of it as a virtual pickpocket, snatching your data while you scroll through dream jobs that may not even exist. An overstealer: Disguised as a job advertisement link, the malware tricks users into clicking it. This click initiates data extraction, potentially exposing them to further attacks. Don’t click on suspicious links: One surefire tip the NITDA recommends in dodging this digital bandit is to be wary of suspicious ads. Before you click that job link, be sure that it is from the right source. NITDA also recommends updating your apps regularly. The agency also advises that you update the antivirus software of your personal computer to track every move of the malware and its other cousins. The recent discovery of “Ov3r Stealer” spreading through social media may seem like a fresh nightmare. But
Read MoreUber denies breaching Lagos data sharing deal after government threatens sanctions
The global ride-hailing company Uber has pushed back against a suggestion that it failed to honour a 2020 agreement to share data with the Lagos state government. That agreement mandates ride-hailing companies to share users’ trip information by giving the government backend access to real-time data. “Immediate corrective action is imperative to rectify Uber’s non-compliance with the Data Sharing Agreement and API integration of the state,” said Oluwaseun Osiyemi, the Lagos state commissioner of transportation. Citing security concerns, Osiyemi argued that having access to trip information was for the “well-being of all Lagos State residents.” “In all markets that we operate in, and Nigeria is no exception, we are committed to being compliant with regulatory requirements,” an Uber spokesperson told TechCabal via email. “We have met Lagos State’s regulatory obligations, including an annual fee, per-trip levy and data sharing requirements,” the same person said. The 2020 agreement followed months of conversation between ride-hailing companies and the Lagos state government on the need for regulation. These regulations are not unique to Nigeria; in 2016, Uber disclosed that it shared the data of 11.6 million passengers and 600,000 drivers with state and local regulatory authorities. The company has previously argued that some of those data points were more than regulators needed to do their jobs. But it often has little leeway when it comes up against governments. In 2020, it agreed, alongside other operators in Nigeria, to pay ₦25 million in annual license fees and ₦20 on each trip as a road improvement levy. It was a better outcome than motorcycle-hailing startups like Gokada and ORide got, with new regulations banning commercial motorcycles under 200cc on highways, essentially wiping out an entire business segment. For now, Uber will need to engage the Lagos state government, something it has adequate experience in. “We have been a committed ride-hailing player in Nigeria for the past 8 years and are keen to continue raising the industry bar on mobility.”
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Chams believes mobile money and cross-border payments will fuel growth after government fiasco
When Mayowa Olaniyan was appointed GMD/CEO of Chams Holding Company Plc in December 2022, she believed the company’s shares were undervalued. Fourteen months on, Chams’ share price is ₦2.50kobo, up from 50 Kobo in 2022. The company’s share price is up 6.9% year-to-date. “The share price has begun to reflect the proper value of the organisation,” Olaniyan told TechCabal on a call. Investors are rewarding Chams for a decision to move on from government clients after it lost $100 million executing a contentious National identity project. “We no longer deal with the government. We only deal with consumer projects; that means serving you,” said Demola Aladekomo, the company’s chairman. One important part of that shift is a holding company structure for Chams. Its subsidiaries will now compete across various spaces in financial services: mobile money, cross-border payments and education financing. Its switching subsidiary, ChamsSwitch, will focus on cross-border transactions and provide gateway payments. The subsidiary believes there’s a profitable business solving payment bottlenecks for traders buying goods from international partners. “The volume of business transactions in Computer Village at Ikeja that come from China is huge, and there is no means of payment.” Chams honours directors at a meeting last year ChamsSwitch partnered with UnionPay in July 2023, a Chinese financial services corporation that provides bank card services within China. That partnership, along with an integration with Nigerian banks, will allow the subsidiary to issue UnionPay cards that support international payments. “Providus Bank should go live by the end of Q1 2024.” Wema Bank and Heritage Bank are also among the financial institutions being onboarded. CardCentre is taking a slice, but now it wants the whole pie If you own a debit or SIM card, the odds are that CardCenter, a Chams subsidiary, produced it. An August 2022 ban on SIM card importation means only local players can manufacture these cards. The subsidiary produces five million cards weekly (SIM and debit cards) and plans to expand its production lines. In July 2023, CardCentre added a second line for card production. CardCentre already produces SIM cards for MTN Nigeria and expects to produce cards for Airtel Nigeria too. It also plans to expand to other African countries and look to its foreign partners to help achieve its ambitions. In addition to its ambitious expansion plan, CardCentre wants to undergo a backward integration to fully produce cards in Nigeria. It does import a few components to help personalize these cards, but Nigeria’s foreign exchange volatility is forcing the firm to embrace local production to save costs. Chams’ bet on the NGX As Chams’ share price continues to stabilise the NGX, boosting investors’ confidence, Olaniyan says listing on the NGX is “best for sustainability, continuity, and accountability.” This is despite the scrutiny that comes with being listed which many tech startups may be avoiding. While it remains a leader across different tech sectors, Chams, through its subsidiaries—ChamsSwitch, ChamsMobile, CardCentre, and ChamsAccess—is building investor confidence that could see further growth on the NGX by the end of the year.
Read MoreFour ex-Paystack senior managers launch grocery delivery startup, GoLemon
Four former senior managers at Paystack are leaving the payment company to launch GoLemon, a food and grocery delivery startup. Yinka Adewuyi, Gbadegbo Gbade-Oyelakin, Abdulrahman Jogbojogbo and Abiola Showemimo, all early employees, were at Paystack for at least six years. Adewuyi, a former product lead at Paystack, is GoLemon’s CEO, while Gbade-Oyelakin, who led Paystack’s core platforms team is the CTO. Jogbojogbo, a marketing lead at Paystack, will lead growth for the startup, while Showemimo, one of the first ten employees at Paystack, will lead operations. The startup delivers foodstuffs and groceries to homes and businesses and will compete with other deep-pocketed companies like Glovo and Chowdeck, a YC-backed company. This is also a difficult time to launch a grocery delivery startup in Nigeria, as international giants like Jumia and Bolt exited the food delivery segment last year. Francis Dufay, Jumia’s CEO, blamed challenging unit economics, big losses (Jumia Food never turned a profit in any of the 11 countries it operated in), and increasing competition for the decision to shut down Jumia Food. And while some big players are beating a retreat, Jogbojogbo believes this is the best time to start a grocery delivery business. “It’s difficult to get started right now and get traction but if we can weather the storm right now, I think we would have been able to build a formidable business,” Jogbojogbo told TechCabal on a call. He added that the team will rely on Showemimo’s experience as a supermarket owner in Lagos and Gbade-Oyelakin’s experience as head of engineering at Supermart, an online supermarket, to build the business. GoLemon’s unique proposition GoLemon manages its inventory and fulfillment centres, directly sourcing its bulk products from farmers and FMCGs. Jogbojogbo told TechCabal that while GoLemon might have competition in aspects of its product offerings, it does not have an “end-to-end competitor.” The startup has built a sourcing network connected directly to farmers and manufacturers and optimises for the lowest costs possible to attract a wide customer base. The startup mostly caters to large orders and was “intentionally designed around people who make repeat orders, repeat purchases and large basket size orders,” Jogbojogbo said. The launch comes weeks after a former Flutterwave vice-president launched Mira, a foodtech startup. YC has also increasingly backed foodtech startups, even as it scales back its presence on the continent.
Read MoreCrackdown on unlicensed companies cuts digital creditors in Kenya to 51
Before consumer protection laws were passed, any lender could run a digital credit business. Kenya has approved the operation of 17 new digital credit providers (DCPs), including Autochek – a car loan facility startup – one year after it licensed 32 digital credit providers. In a move signaling a crackdown on predatory practices, the Central Bank of Kenya (CBK) continues to scrutinise applications from digital lenders, issuing licenses to just 51 lenders so far. This stringent vetting process follows the need to address borrower concerns, such as unethical loan collection techniques. In 2022, through the CBK, Kenya purged all digital lending companies for operating without licences. The directive implied that these companies, which had grown to hundreds, had to cease operations immediately and apply for a permit from the CBK. The licences were structured around a new law, the CBK (Digital Credit Providers) Regulations, 2022, which introduced data protection laws to safeguard borrowers from illegally using their personal information. Before these changes, Kenya had hundreds of unlicensed digital lending platforms. However, concerns about high interest rates, personal data abuses, and unethical debt collection practices compelled the government to act. “The licensing and oversight of digital credit providers (DCPs) was precipitated by concerns raised by the public about the predatory practices of the unregulated DCPs,” the CBK said in a statement. After the law was passed, only a few digital lenders could provide their services to Kenyans, including Branch, which operates in other markets such as Nigeria and Tanzania, and Tala. Then, over 480 digital lenders applied for the license, indicating the lucrative nature of the online lending business in the country. The regulatory change was a response to public outcry over the unchecked practices of digital lenders. These companies operated charged excessive interest rates, sometimes up to 400% per year, among other unethical business practices. Under the new law, the CBK (Digital Credit Providers) Regulations, 2022, all digital credit must register as data controllers and processors with the Office of Data Protection (ODPC). Credit providers must also provide evidence of their source of funds as an anti-money laundering directive.
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Next Wave: Agritech are startups outpaced by traditional brokers. What can be done?
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First Published 10 March, 2024 Tech-driven agricultural startups (agritech) are driving innovation by connecting different players in the agricultural sector. They are particularly helpful for rural farmers, linking them directly with urban buyers. Ghana-based AgroCenta, for example, offers an online marketplace for farmers’ porduce while Hello Tractor uses a mobile app to facilitate tractor rentals for small-scale farmers. Nigeria’s ThriveAgric takes a more comprehensive approach by providing a mobile platform that connects farmers to buyers and suppliers to credit. However, convincing farmers to collaborate with agritech companies has proven challenging since traditional brokers remain influential in controlling crop and market access. It makes sense because comparing traditional brokers/middlemen with B2C or B2B businesses, there isn’t much of a difference beyond the technology layer. B2B and B2C penetration challenges Agritech startups encounter obstacles when competing with traditional vendors who connect farmers to buyers due to entrenched relationships, local knowledge, and limited need for technology adoption among farmers. According to a report filed by Mozilla about the digital startup ecosystem in Africa, traditional vendors have built long-standing trust and familiarity with farmers, taking advantage of their deep local networks and understanding of farmers’ specific needs. This has made it challenging for agritech startups to penetrate the market, especially in rural areas where technology adoption is low and dependence on traditional farming methods is strong. Cultural and language barriers have also complicated the crisis, as traditional vendors often speak the local language and understand the cultural norms of farming communities, enabling them to establish rapport and trust more easily than agritech startups. Next Wave continues after this ad. The Algorithm is a TechCabal vertical that focuses on the backend of the creator economy. We’ll bring you stories that delve into the creation process, the business of being a content creator, interviews with creators, and everything else about online creators! Read the second story here. Overcoming these obstacles will require agritech startups making targeted efforts to build trust, provide localised support, and address the cultural and language barriers that impede the adoption of agritech solutions in farming communities. Despite agriculture being a crucial economic sector, investment in agritech has attracted little funding over the last couple of years. According to the aforementioned Mozilla report, in 2021, the African agritech sector received $95.1 milliom, which was 4.4% of total funding for tech startups in Africa, marking a notable jump from $59.9 milliom (8.6% of total) in 2020. Partner Content: Read: How Filmmakers Mart is changing filmmaking in Africa by solving production problems here. Now, what happens if these barriers are not overcome? Agritech startups, particularly those linking farmers to vendors, face challenges that may worsen in Africa due to rural poverty and natural-resource scarcity. These challenges include addressing competing claims on natural resources, ensuring the inclusion of the poor in the development process, and effectively integrating small-scale farmers into value chains. To address these issues, agritech startups must tailor their approaches to designing the brokering role. Before establishing market operations, they should analyse innovation system imperfections and gauge stakeholders’ willingness to support or collaborate with them. Building trust and credibility among farmers is essential for success in the agritech industry. Agritech firms should consider multiple functions required at different stages of innovation but avoid applying them as a fixed template. Flexibility is key, allowing for the reassessment of context, needs, and opportunities as necessary. This also helps networks adapt accordingly. Facilitating interaction is a dynamic process that demands continuous attention to build mutual understanding and trust, particularly in response to evolving visions and networks. Next Wave continues after this ad. Talent PEO Africa launches in Kenya, offering comprehensive HR solutions for businesses. From EOR services to recruitment and HR consulting, we simplify operations for seamless growth. Partner with us to tap into Kenya’s talent, navigate regulations, and achieve success. Contact us at www.talentpeo.com or kenya@talentpeo.com. Sometimes, agritechs face conflicts of interest that require strong conflict management and mediation skills. They must navigate contrasting demands and opposition from other actors in innovation systems resistant to change. Transparency about actions and interventions is key to avoid misinterpretation, particularly in countries with weak governance where challenges like corruption and favouritism may come up. And despite resource dependencies, agritech firms should avoid being perceived as “hidden messengers” for the government or other parties, as this can undermine their credibility. Kenn Abuya Senior Reporter, TechCabal Thank you for reading this far. Feel free to email kenn[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa. If you liked this edition of Next Wave, please share with your friends. And feel free to reply with thoughts and feedback. We welcome those. 18, Nnobi Street, Surulere, Lagos, Nigeria View in Map You received this email because you signed up on our website or made purchase from us.If you know longer wish to recieve these emails, please unsubscribe
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👨🏿🚀TechCabal Daily – Showmax’s legal showdown
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’ve ever dreamed of starting your own GRWM videos, we’ve got a sweet read for you. In this edition of The Algorithm, my colleague Hannatu spoke to three lifestyle content creators to discover the secrets to becoming a successful social media vlogger. Much like your mood swings, these creators say the secret is showing up every day…among other things. Read up here. In today’s edition Lagos moves to sanction Uber Showmax faces fresh lawsuit IFC sues Africa Talking Gro Intelligence lays off 60% of its staff How many African companies make revenues worth $1 billion? The World Wide Web3 Job openings Mobility Lagos state government to sanction Uber Ever wondered how safe your late-night Uber ride truly is? Well, the Lagos State Government might be taking a peek under the hood. The government wants Uber to supply records of users’ trip information to ensure the safety of Lagosians. Uber, however, has failed to comply with this regulation. The news: Now the Lagos State Government is flexing its regulatory muscle, threatening sanctions against Uber Nigeria for failing to comply with “essential data sharing agreements”, which mandate the company to share user and trip information with the Lagos government. Now, this data exchange can be a double-edged sword. For riders, it could mean faster emergency response times if things go south. On the flip side, for Uber, complying could translate to hefty costs in integrating new data-sharing systems. But non-compliance could be a recipe for a Lagos-sized headache—think hefty fines or even a complete shutdown as with Gokada, ORide or MaxRide. Uber’s no stranger to regulatory battles worldwide. Singapore, for example, mandates real-time trip tracking for safety reasons, essentially becoming a backseat passenger on every Uber ride. India has also explored similar measures. So, what does this all mean? It’s a sign of the times. Governments are increasingly flexing their muscles in the digital age, demanding more transparency from tech giants. While Uber wrestles with Lagos’ demands, one thing’s for sure: finding a solution that balances safety with privacy concerns will be key to keeping those Uber trips rolling in Lagos. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Streaming Showmax faces legal battle in new documentary premiere Showmax started its reboot with a sleek UI design and an expansive content library to keep you glued to your screens. Now, the streamer is making new additions to keep you at the edge of your seat. What additions? Showmax is set to begin streaming “Tracking Thabo Bester”, a four-part true crime documentary that tells the story of the prison escape and recapturing Thabo Bester, who was serving a life sentence for rape and murder. Showmax will premier the first two episodes of the documentary on 15 March, 2024, and release the final two episodes on 22 March, 2024. But Bester does not want his story told. Bester, who faked his death and escaped from Mangaung Correctional Centre in Bloemfontein in 2022, has threatened legal action against Showmax’s owners MultiChoice if it goes on with the premiere of the documentary. Bester and his accomplice, Nandipha Magudumana, weren’t happy about their names being used to sell a show, claiming they never gave permission. The pair also wanted to see the documentary first before it hit the airwaves. Bester’s lawyers also argue that airing the show would impede his criminal trial, which is set to begin in June 2024, and infringe on his rights to a fair trial. MultiChoice has maintained that streaming the show serves the public good, and perhaps their responsibility to shareholders. While true-crime fans eagerly await the March 15th premiere, a legal battle threatens to derail the documentary’s release. It remains to be seen whether “Tracking Thabo Bester” will land with a bang or a whimper. Bester’s case is eerily similar to a defamation suit brought by a retired police officer in Netflix’s docuseries “Making a Murderer”. The police officer claimed that Netflix defamed him by accusing him of planting evidence. However, the judge ruled in favour of the streaming giant, claiming that the suit raised no statements that are defamatory. While Bester’s claim about a fair trial might hold more weight, the outcome likely hinges on whether the documentary is deemed prejudicial. Legal IFC sues Africa Talking for rejecting Infobip’s acquisition offer Last week, we exclusively reported that Africa’s Talking (AT), was sued by Eston Maina Kimani, Bilha Ndirangu, and three others who allege that AT’s CEO, Samuel Gikandi pushed out Ndirangu as director after she requested a “workplace abuse” investigation. More investigation has revealed that the company has been caught up in another legal dispute since 2023. The Kenyan-based communication-platform-as-a-service (“cPAAS) API startup, was reportedly sued by one of its major investors, the International Finance Corporation (IFC). Why? IFC, a lead investor in Africa’s Talking (AT) 2018 $8.4 million series A round, was unhappy with AT rejecting Infobip’s acquisition offer and sued the company. While IFC holds a 20% stake in AT, CEO Samuel Gikandi controls the board, preventing IFC from pushing the sale through without board approval. According to sources familiar with the deal, two additional co-founders of Africa’s Talking expressed openness to the Infobip acquisition and are now also suing Gikandi. Gikandi, in an email to TechCabal, described AT as being “viciously attacked” by the IFC, suggesting a pattern of abuse dating back to their investment in 2018. He perceived the “attack” as a “cover-up” and claimed ignorance of the IFC’s motives. Zoom out: As part of the Series A deal, Wale Ayeni, who led IFC’s venture capital arm in Africa at the time of the investment, joined Africa’s Talking board. Marieme Diop has since replaced him. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure
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What does it take to be a successful lifestyle content creator on social media?
In just one year, Ima transformed from being a lawyer into a successful lifestyle content creator. With 144K followers on TikTok, 32K on Instagram, and 14K on YouTube, she is on top of the creator platform trifecta —YouTube, Instagram and TikTok —that is dominating the video content landscape. Her journey began in 2021 when she beat procrastination and started her YouTube channel: something she’d wanted to do since her university days. Like many other lifestyle content creators, the COVID-19 lockdown provided a great opportunity to start a career in content creation. There’s a large audience across the continent and the majority of creators want to target different kinds of audiences – as many as they can – on these three platforms. Despite starting on YouTube, it was its newer competitor that carried her to social media popularity. Less than a year after she began posting consistently on the app, her chaotic vlogs and hilarious storytimes drew the attention of a predominantly Gen Z audience, earning her over 100K followers in a matter of months. While TikTok’s demographic ranges from individuals between the ages of 10 and 50, the highest percentage of users on the app are between ages 10 and 19. Ninety-five percent of YouTube users, on the other hand, are between the ages of 19 to 29. Miss Ima’s YouTube. Social media is complex, and each platform requires a unique process for creators looking to navigate and build an audience. While having an audience on TikTok has been beneficial in helping Ima grow her other platforms like YouTube and Instagram, she believes that building niche audiences for these platforms still requires a lot of work. While storytelling thrives on TikTok, its competitor, Instagram, prefers more fast-paced content. “In my personal experience, Instagram prefers content that’s more curated as the app is still slightly more formal than TikTok,” she shared. “TikTok, on the other hand, prefers more organic content with a lot of face time. Ima believes that to be successful on TikTok, one must have consistency and offer value, even more than other important traits like authenticity. “No matter how authentic you are, or how great and interesting your stories are, if you are not showing up every day, it doesn’t matter,” she said. “Also, you have to be offering value to people. Being consistent and offering value in your unique way is what people see as authentic.” Crafting stories that resonate as a lifestyle content creator Hamda Koya was working at an ad agency in 2021 where she frequently collaborated with many digital creators for marketing campaigns. As someone who loved to explore places and document these via pictures and videos, she found the concept of being a creator fascinating and decided one day to try her hands at becoming one. This spontaneous experiment led to the birth of The Lagos Tourist, Hamda’s Instagram page. Her content, which is upbeat and happy — a characteristic she says stems from her personality, has attracted 62,000 followers on the app. According to Hamda, the secret to being a successful lifestyle content creator is crafting compelling stories that grab the audience’s attention in the first three seconds — a universal truth in the world of marketing. Whether it’s sharing spontaneous adventures or scripted rants, her ultimate content creation strategy is spinning engaging narratives that keep her audience hooked from the beginning. “Your video editing skills might be great, and your videos might be nice, but if they can’t find a way to draw attention in the first two or three seconds, you’ll lose the audience,” she said. While she shares that she’s not so organised in terms of sticking to schedules and calendars, she uses content buckets that help with an overall sense of direction in regard to what she’s looking to share. “I sit and think of what would be funny, relatable and engaging, and then write the script for it.” In November 2023, Hamda moved to Canada and has been more strategic about the kind of content she puts out. She aims to collaborate with Canadian lifestyle content creators as a way to break into the Canadian creator scene and diversify her audience, which currently consists predominantly of people in Lagos. Community is the bedrock of creating From left to right: Miss Ima, Hamda, and Amaka Amaku For Amaka Amaku, who has about 20K followers on Instagram, creating content means sharing her everyday life with people online—something she does with an uninhibited flair. She has always posted content on her Instagram for the purpose of sharing, which eventually helped her connect with people and build a community there. It wasn’t until 2019 that she realised that she had built a career out of it. In the year that followed, she got her first brand deal. Beyond publishing photos and videos on her account, the entire concept of creating is one that she enjoys as it allows her to view her everyday life through more curious and interesting lenses. Amaka also has a TikTok, and while she believes that you can share the same content to both platforms, you still need to optimise for each. “Instagram started as a photo-sharing app, and while we now have reels, the attention span of a lot of the audience is still short,” she shared. According to her, the videos on Instagram need to be shorter, have a catchy sound, and be more fast-paced to gain traction On the other hand, TikTok loves storytelling, in her experience. “If you want to do well; just tell stories. People love hearing what you did, how you did it, and where you did it.” What happened in morocco pic.twitter.com/JDsIgezgKd — Charms (@The_amakaaa) January 7, 2024 Whether on Instagram or TikTok, she tailors her content for each platform’s unique audience, understanding the need for brevity on Instagram and the love for storytelling on TikTok. Amaka’s content is charming, and she shares that a lot of it stems from her resolve to create content from a place
Read MoreIFC sues portfolio company Africa’s Talking for rejecting acquisition offer
International Financial Corporation (IFC), a member of the World Bank Group and a lead investor in Africa’s Talking (AT) 2018 $8.4 million series A round, sued its portfolio company in 2023 for rejecting an acquisition offer from Infobip, a person familiar with the matter told TechCabal. The matter is still ongoing at court, people familiar with the matter said. TechCabal had not received the court documents at the time of this report. IFC, which holds a 20% stake in Africa’s Talking, recommended that the company accept the acquisition offer but ultimately failed to convince the rest of the board. As part of the Series A deal, Wale Ayeni, who led IFC’s venture capital arm in Africa at the time of the investment, joined Africa’s Talking board. Marieme Diop has since replaced him. “If they controlled the board, they could have approved the sale. But in this case, Samuel Gikandi, Africa’s Talking CEO, controls the board. So, IFC has to get majority board approval,” an investor who asked not to be named said. IFC did not respond to multiple requests for comments from TechCabal. Two other cofounders at Africa’s Talking were open to the Infobip acquisition, sources familiar with the deal claimed. Those cofounders are also suing Gikandi. “AT was viciously attacked by the IFC last year, continuing a pattern of abuse that started with their investment in 2018,” Gikandi told TechCabal via email. He added that the “attack” felt like a “cover-up” and claimed he was unaware of IFC’s motivation. Gikandi did not answer any questions on the legal proceedings. How Huawei became Nigeria’s biggest telecoms vendor and enterprise business Orange Digital Ventures, a $350 million fund, and Social Capital, a $600 million fund looking to sell its stake in startups, also participated in Africa’s Talking Series A round. Africa’s Talking is now caught up in at least two legal cases. On Monday, TechCabal reported that Africa’s Talking and Gikandi were sued by Africa’s Talking other co-founders Eston Maina Kimani and Bilha Ndirangu, and three others who allege that Gikandi pushed out Ndirangu as director after she called for an investigation into “workplace abuse.” “The 1st Applicant (Ndirangu), who previously served as a CEO and until the irregular ouster held the position of an independent director, possesses a deep understanding of the 1st Respondent and its operations,” a court document read. *This is a developing story
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