Next Wave: The future of fintech regulations
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 17 March, 2024 Policy and regulation have the potential to significantly impact the operations and growth of innovative businesses, if applied wrongly. Technological advancements do not have to suffer clampdowns at every turn; a collaborative approach to regulation is what’s needed. The biggest crackdowns on tech by most African governments tend to happen with fintech. In 2021, the Central Bank of Nigeria (CBN) secured a court order to freeze the bank accounts of stock trading platforms Risevest, Bamboo, Trove and Chaka for six months. According to the CBN, the firms were responsible for the weakness of the nation’s currency and operated without licences. One of the affected companies lost users and deposits after the announcement. 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 our latest story here. In 2022, Flutterwave had its assets frozen in Kenya, which put a pause to its expansion plans and dragged its reputation in the mud. Last year, the Central Bank of Kenya cautioned residents against dealing with individuals and entities offering payment services without licence. It warned that these services were unregulated and a criminal offence. As at 2023, a total of 23 African countries have banned or restricted the use of cryptocurrencies within their economies, stifling innovation in the area. Number of African countries that placed restrictions on crypto. Chart by Stephen Agwaibor, TC Insights The major problem governments face when it comes to regulating tech is striking the right balance between safeguarding their economy from the consequences of badly-adopted technology and resisting the urge to over-regulate or under-regulate. Before fintech can be effectively regulated, we need to understand its peculiarities, as distinct from those of traditional finance institutions. Regulators must understand the infrastructure fintechs operate on. One CEO said that more knowledge sharing between fintechs and governments could be the difference between profiling, poor regulation and high licensing fees. Partner Content: Read: All the things we like about the TECNO Spark 20 Pro Plus here. In a fintech company, innovation moves faster than regulations can keep up with, so it’s important that regulation is flexible enough to accommodate, or even preempt, these changes. A middle-ground approach to regulation can be considered instead of issuing outright bans or restrictions that hurt the fintech sector. Partner Content: Read: How Flashchange is empowering digital transactions through gift cards here. Regulators in Africa could have applied the sandbox model to cryptocurrencies, before taking any big decisions. Sandboxes can serve as a safe space to test innovative services, products and models without immediately applying all the normal regulatory consequences of engaging in the activity in question. This is particularly helpful for regulators who are seeking to understand new technologies and collaborate with industry players to establish rules for managing services, products, and business models that stem from emerging technologies. It also helps to lower the costs and regulatory barriers for testing disruptive, innovative technologies without negatively affecting consumers. 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. Another model governments should consider is the segregation model. This model regulates fintech companies by introducing a specific regulator for the industry, instead of using central banks who are more attuned to traditional banking methods. The United Kingdom has a body, the Financial Conduct Authority (FCA), which regulates all financial markets and services in the UK. There is also a Payment System Regulator (PSR) that regulates payments in the UK. All that said, the future of fintech regulation is collaboration and information sharing. Regulators must remember that they have a duty to create an enabling environment for innovation to thrive. Joseph Olaoluwa Senior Reporter, TechCabal Thank you for reading this far. Feel free to email joseph.olaoluwa[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). 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Read MoreBlockchain payments startup Zone raises $8.5m in first funding as a standalone business
Zone, a Nigerian blockchain startup that helps banks and fintechs process payments, has raised $8.5 million, its first VC funding since it became a standalone business in 2022. Until 2022, Zone was part of its parent company Appzone. Flourish Ventures and UK-based TLcom Capital led the seed round, according to a statement on Monday. Other investors include international blockchain-focused VC firms Digital Currency Group, Verod-Kepple Africa Ventures, and Alter Global. “The startup was funded initially by the parent company. When you separate the traditional business, the natural thing to do is to raise money to continue growth,” Obi Emetarom, CEO and co-founder of Zone, told TechCabal over a call. With the new funding, Zone—Africa’s first regulated blockchain network for payments—will expand the coverage of its network domestically and connect more banks and financial services companies. The company runs a blockchain network that enables direct transaction flow between financial service providers without an intermediary. It automates settlement, reconciliation, and dispute management. Zone claims over 15 of Africa’s largest banks and fintech companies use its network to process payments. Access Bank Plc, Guaranty Trust Bank Plc, and United Bank of Africa—three of Nigeria’s biggest banks with a market capitalisation of at least ₦1 trillion—are among its clients. “We are excited by the potential for Zone’s technology to be replicated across borders to advance payment innovation globally,” Ameya Upadhyay, Partner at Flourish Ventures said. Zone will improve its technology, especially in terms of instant settlements. The company will also roll out more use cases for its blockchain network beyond ATMs to reach more users. “We aren’t building the interface for the end users, we are building the API that banks, fintechs, and other financial service providers can integrate their payment applications to,” Emeratom said. Zone’s fresh funding comes in a difficult fundraising market. African startups raised $3.2 billion in 2023—the lowest figure in three years, according to TechCabal’s funding tracker. “The participation of high-quality investors despite the funding drought and the fact that we had more interested investors than we needed, is a sign of trust in the Zone brand,” Emetarom said. He noted that Zone’s selling point to investors is the uniqueness of its product and the experience of the founders who are veterans in the banking industry. “We have seen a lot of customer-facing payment startups in the last five years. But you don’t have startups raising money to build payment infrastructure. That makes us unique.” Zone has ambitions to extend its blockchain network across Africa. The company will spend part of the fresh funding to conduct a comprehensive pilot program to test its cross-border capabilities, as it plans to launch a remittance product in 2025. However, Zone isn’t in a rush to expand into new markets. “Right now, the focus is to build out the capabilities domestically on the technology side and use cases.”
Read MoreSEC proposes ₦1 billion capital requirement for virtual asset companies
Nigeria’s Securities and Exchange Commission has proposed raising the minimum paid-up capital for virtual asset service providers (VASPs) to ₦1 billion, two times the previous proposed requirement of ₦500 million. The paid-up capital requirement consists of bank balances, fixed assets or investments in quoted securities. Virtual asset service providers include cryptocurrency exchanges, peer-to-peer platforms and OTC desks. One cryptocurrency exchange told TechCabal that operators received the draft proposal on Friday. The SEC first shared the draft on virtual asset providers in 2022 and, at the time, proposed N500 million in minimum paid-up capital. “Our SEC has indirectly told the community that this game is for the big boys,” said Rume Ophi, a crypto expert. A crypto exchange operator who asked not to be named told TechCabal believes local operators should unanimously reject the proposal. “This proposal locks out a lot of local players. I suspect at the end of the day that the foreign-owned companies will dominate the crypto space in Nigeria,” said Tim Akimbo, a Bitcoin expert. Apart from the N1 billion minimum paid-up capital, virtual asset companies must also provide current Fidelity Bond covering at least 25% of the minimum paid-up capital. A fidelity bond is a type of insurance that offers business protection against losses caused by employees who commit fraud, theft, and forgery. The rules also allow the SEC to, at any time, impose additional financial requirements on the digital asset operator commensurate with the nature, operations, and risks posed by the company. The commission also increased the number of additional documents required for registration. The new rules require “a sworn undertaking that the applicant will be able to operate an orderly, fair, and transparent market in relation to the securities including derivatives that are offered or traded, on or through its platform.”
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👨🏿🚀TechCabal Daily – Showmax bests Bester
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Three founders sit down with us to discuss building startups in Africa, revenue being the cheapest funding, how they view AI, & their hopes for the future. Start your week by listening to the founders of Bamboo, Sendstack and Shop F.A.W.L talk business on our podcast Heart and Hustle. Watch it here. In today’s edition It could take five weeks to fix your internet Showmax bests Bester Nigeria may increase crypto registration fees Can Nigerian businesses deliver despite inflation? The World Wide Web3 Job openings Telecom Internet service disruption may take weeks to fix Last week, a major fibre cut of four internet service providers—Nigeria’s MainOne, The West Africa Cable System, South Atlantic 3, and South Africa’s Seacom—led to wide disruptions of internet service across eight African countries. The internet disruption has reduced productivity for individuals, made businesses lose monies, and caused an existential crisis for social media influencers across the affected African countries—Ivory Coast, Liberia, Nigeria, Benin, Ghana, Cameroon, Senegal, and South Africa. While shifting of the sea beds is identified as a likely cause for the fibre cuts, the exact reason is yet to be identified. Internet speeds across the affected nations have also retired to a slow pace as the internet disruption enters the fifth day. Per Bloomberg, the estimated time for repairs is expected to take weeks or months depending on the severity of the cuts and weather conditions needed to fix. Ghana’s comms regulator also estimated that repairs would take at least five weeks. MTN Group has joined hands with ACE and WACS undersea cable systems to send a dedicated vessel to repair the affected cables. A major cut for businesses: The Internet outages have caused problems for businesses in the affected countries. Ghana’s stock exchange moved its closing hours for trading by an hour on Thursday and Friday. BUA Cement, Nigeria’s second-largest cement producer postponed its call with investors, and Microsoft also reported outages on its cloud services and Microsoft 365 applications across the continent. Banking services in Nigerian major banks—Zenith, Sterling, UBA—and have been affected, with users unable to access USSD services. In South Africa, MTN Group and Vodacom also reported outages to their services. The impact is estimated to affect millions of lives across the globe. A way out? Mobile network provider, MTN, which relies on MainOne as its network provider, was among the most affected by the recent internet cut for Nigeria. With MTN leading Nigeria’s telecoms markets, several hundred users have taken to social media to express frustration as their internet speeds dwindled to less than 1Mbps. Other internet providers, however, have come out unscathed. For instance, Globacom which runs a different submarine cable along the west coast of Africa between Nigeria and the UK was not affected. Several users of MTN have explored alternatives in Glo to surf the internet. This writer remained loyal, using an MTN router—that provides speeds of up to 45mbps—as a workaround. People, read: rich people, have explored also alternatives in Elon Musk’s satellite-based internet Starlink to hedge against the bad internet. Others have sought refuge in VPNs—Tunnel Bear, X Vpn—and other internet service providers like Tizeti and FiberOne—who were quick to put out ads to their customers to claim they were unaffected by the cuts. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Streaming Showmax bests Bester From 2021 to 2023, convicted rapist and murderer Thabo Bester put on a show for South African authorities. While incarcerated, Bester—a scam artist—hosted the launch of a digital media company that convinced people that he, posing as CEO Tom Motsepe, was in New York. In May of 2022, Bester upped his game; he faked his own death in prison by setting a corpse on fire. Then Bester and his lover and abettor Nandipha Magudumana would spend the next year being sighted across South Africa shopping…right up until the duo would be caught miles away in Tanzania in April 2023. Now, Showmax wants to replay Bester’s infamous tale in a documentary that could be likened to Netflix’s Inventing Anna. The company, last week, was set to release a four-part documentary on Bester’s prison escape and eventual recapture on March 15. Bester’s lover Madugumana, however, sought an injunction from the courts just 16 hours before its premiere, claiming the streaming service did not receive her permission to record or air the show. The duo claimed that the documentary would cause “irreparable harm” to them. They also requested to see the documentary before Showmax could air it. On Friday, a South African court ruled against the South African Bonnie and Clyde. Per the ruling, pretty much everything in the Showmax documentary is in the public domain. Judge Wilson, who resided over the case, also ruled that both Bester and Madugumana had failed to show how airing the documentary would cause harm to themselves or to the public. The trial also revealed that Showmax had paid Madugumana’s brother R30,000 ($1,600) to share his side, while her father had sent threats to deter the Showmax production team from airing the documentary. The show, Tracking Thabo Bester, premiered on Showmax on Friday, and its last two episodes are set for a March 22 release. Crypto Nigeria may increase crypto registration fees In a bid to regulate Nigeria’s crypto space, the country’s Securities Exchange Commission, in May 2022, released its first guideline for crypto and digital assets service providers, stylised “New Rules on Issuance, Offering Platforms and Custody of Digital Assets.” The guidelines would become the holy grail of Nigeria’s crypto ecosystem, detailing several instructions for crypto service providers in the country. The guideline contained among many other rules, an application fee and registration fee for crypto service providers pegged at ₦100,000 ($62) and ₦30 million ($18,620) respectively. Fast forward to last week Friday when the regulator had a rethink to rebrand the crypto guidelines and
Read MoreNigerian businesses are forced to navigate high-flying delivery prices
The evening of her traditional wedding, Titilayo, a 27-year-old project manager, received a call to come and pick up a package she had ordered from the delivery station. The package contained her wedding shoes, and they had arrived three days late, just when the wedding was wrapping up and guests were leaving. A week ago, when Titilayo had ordered the shoes from Lagos and the vendor asked what delivery options she preferred, Titilayo hadn’t realised that the real cost of the price difference between the options meant not wearing the shoes for her wedding at all. She had been presented with three options: ₦18,000 for next-day doorstep delivery via DHL; ₦7,500 for doorstep delivery which would take three to five days; and ₦5,000 for a package drop at the nearest motor park (the delivery station), from where she could pick the shoes up. Titilayo lived less than 10 minutes away from the park and three to five days seemed like a reasonable wait time for her shoes to arrive; she chose the third option. Her shoes did get delivered to the station all right, but Titilayo had already worn something else for her wedding: a pair of champagne-gold sandals her sister had hurriedly purchased from the nearby market that morning. They were nothing close to what she wanted, but she didn’t have the time to be choosy. Titilayo is one of many customers who have to experience delayed deliveries due to the increased cost of more efficient methods. In February 2024, DHL increased the prices of their deliveries in Nigeria by 100%. Their reason was pretty obvious: the naira was devaluating and increasing operational costs for the company faster than they were able to make profit. In the past month, the price of sending a 2kg box that’s about 45cm in length and 20 cm in height from Abuja to Lagos via DHL has increased from ₦20,000 to ₦39,000. People might be able to justify paying exorbitant delivery fees for more expensive items like generators or refrigerators, but not a lot are willing to pay that much for shoes or dresses. This has pushed small business owners in the country into exploring other delivery options which are more tedious, delay-laden, and unsafe. In an email sent to partners in February, DHL wrote: “As a network business, we face the constant pressure of balancing currency exchange rates and we make the necessary budgetary decisions to counteract these effects where possible. Unfortunately, the situation in Nigeria has continued to surpass our budgeted levels. “To ensure operational continuity and keep connecting the world with high-quality service, DHL will levy a Currency Surcharge to all Time Definite International (TDI) shipments. The surcharge percentage will be 100 percent, effective March 1, 2024, and is applicable to transportation charges.” Iman Muhammad is the founder of Iman Hammad, a fashion brand based in Nigeria’s capital city, Abuja. The businesswoman, who has a large customer base in Lagos, shared that she’s lost several customers in the past two months due to the inflated delivery costs. Express deliveries from Abuja to Lagos used to cost about ₦20,000 via DHL and were affordable for most of her clients until the price hike on March 1. Now, the same package costs about ₦48,000, which many clients find unreasonable. “To some extent, I understand them,” she shared. “How do you buy a dress for ₦45,000 and spend over ₦40,000 transporting it?” To meet her customers’ demands for swift deliveries, Muhammad began going to the motor park in Jabi to waybill the items so they reached Lagos the next day. Despite being cheaper, it soon proved to be unsustainable as it was an incredibly stressful process. “I got a lot of calls from clients about how rude the drivers were, which was affecting my brand,” she said. “And even when I got a dispatch rider in Lagos to pick up on my behalf, it was such a hassle coordinating the entire process, and so I gave up.” Now, Muhammad uses SendBox, a logistics service based in Abuja. While it takes about five working days to deliver clothes to clients outside Abuja, it costs her about ₦7,000 for each package—about the same amount she paid for waybills. When logistics companies broke into the Nigerian e-commerce space, their premise was simple: providing a faster way to send parcels from one part of the country to another. Unfortunately, the naira came tumbling, crushing everything in its fall, including promises of logistical ease. As long as economic factors strain the logistics sector, small businesses and consumers will be locked in a battle between affordability and efficiency. Hera Samaila, who lives in Abuja, runs Hera’s Closet, a popular social media clothing store in Lagos. While a large number of her customers are within the state, she has a healthy client base in other cities outside like Abuja and Port Harcourt. In the four years since she’s been running her store, she has experimented with different delivery channels in a bid to find the most sustainable option for her buyers in other states. At first, Samaila started using night buses to deliver to clients as they were cheaper than options like DHL and arrived the next day. She soon realised that this option was risky business as she was left stranded after several incidents involving broken-down vehicles and truant drivers. “These people [the motor park drivers] have no insurance for your items, and if anything happens, you alone will bear the cost,” she shared. “I get a lot of customers now who ask me to use that option so they get their orders faster, but I don’t oblige.” While Samaila has found an interstate delivery service that costs between ₦6,000 and ₦7,000 and takes three days on average, there are still some customers who complain about the costs. Samaila has tried several different tricks to lessen the load of delivery fees for her customers. Some of these include subsiding delivery costs, an endeavour she soon had to give
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🚀Entering Tech #60: From acting to tech
Here’s how she went from playign Queen to leading in tech. 16 || March || 2024 View in Browser In partnership with #Issue 60 How Bukola Osuntuyi went from acting to tech Share this newsletter Hello ET people Today’s guest shared a photo of her, in character, sitting on a horse, back in her university days. Bukola Osuntuyi You’re probably wondering how this “Queen Amina of Zazzau” successfully switched into the tech industry. She’s guest-authored this edition #EnteringTech to tell you all about it, in hopes that it will inspire you. Let’s go! by Timi Odueso & Faith Omoniyi From acting to tech Bukola Osuntuyi wasn’t initially drawn to theatre arts, but looking back, it was the perfect choice at the time. The programme equipped her with invaluable skills for the business world, she says. From emotional intelligence and interpersonal relations to critical thinking and teamwork, the curriculum honed her into a well-rounded professional. Public speaking, another key takeaway, is a major asset these days. It all adds up to a win for Bukola. Bukola Osuntuyi She moved to Lagos for a one-year corp programme after graduating from A.B.U. Zaria, and later got into tech through a childhood friend, Benjamin Owobu, who persuaded her to apply for a customer experience role at Konga.com. That was back in 2012, and she was hearing about Konga for the first time. As she researched the company, she stumbled on a CNN interview with Sim Shagaya, the founder and ex-CEO of Konga, and that birthed the beginning of her love for tech startups. She then applied for the role and was offered a job in the Customer Experience Department. *Newsletter continues after ad. Learn with Nvidia NVIDIA GTC returns on March 18–21, 2024 to San Jose, California and virtually. It is renowned for being the premier AI event that brings together the brightest minds in the technology industry. Register now. Her experience with the customer experience team at Konga helped her understand platform usability, e-commerce operations, and the customer journey. Konga, CX Training Specialist Mar 2015 – Aug 2017 Shopflex, Manager, CX & Products Promotion Sep 2017 – Feb 2018 Shopflex, Senior Manager, Global Ops Mar 2018 – Jan 2019 Migo, Lead, CX and Insights Sep 2019 – Apr 2020 Indicina, Head of Customer Success Oct 2020 – Mar 2021 Customer Success Africa, Strategy & Ops Manager Jan 2021 – Sept 2022 Float, Head of Customer Success Apr 2021 – Mar 2022 Float, Global Ops and Customer Success Lead Apr 2022 – Mar 2023 RGU Union, Institutional Trainer Aug 2023 – Present Her experience with the customer experience team at Konga helped her understand platform usability, e-commerce operations, and the customer journey. With these skills, she was promoted to a supervisory role in less than two years. But Bukola wanted more. So she started to enhance her technical, design, and analytical skills. Starting with Excel basics and fueled by online learning, Bukola mastered advanced functions, impressing her manager with customer feedback analysis and NPS reports for executives, launching her tech career ascent. Bukola’s technical and cognitive skills facilitated her transition to the fintech industry, where she was hired by Adia Sowho, Migo’s former managing director. Under Sowho’s guidance, Bukola was able to expand Migo’s customer support team and shape the customer experience by collaborating closely with the IT, data science, and marketing departments. Turning a layoff around Everything was going well; she was leading a team of support champions and learning more about the fintech industry. Then COVID hit in 2020, and she found herself out of a job. Meme Source: YungNollywood A five-month job search can be daunting. But instead of dwelling on the gap, Bukola took a proactive approach. She used this time for self-reflection, evaluating her career path and identifying ways to solidify her value in the tech industry. Here are eight strategies she says she implemented: Became a certified customer success manager through the Success Hacker Institute and transitioned to customer success, working with software companies. Engaged in self-directed learning and explored books like “The Lean Startup,” “Chief Customer Officer,” and “Developing the Leader Within You.” Consumed educational content through YouTube videos, TEDx talks, and podcasts. Accepted unfamiliar roles and projects and learned on the job. She increased her network by connecting with professionals on LinkedIn. Became Director of Operations in a Fintech Startup Started mentoring customer service professionals, aiding their growth and transition to both tech and non-tech roles. Enrolled in and completed a Master’s Programme in Business and Management in the United Kingdom to expand her knowledge of business. In 10 years, Bukola progressed from a customer service agent handling varied customer reactions to a business operations leader in IT and financial services. She’s built teams, executed strategies for technology companies, fostered startup cultures, authored financial policies, managed organisational performances, optimised business processes, collaborated with IT executives, hired diverse talents, represented organisations at conferences, and organised global company retreats. Bukola Osuntuyi The role of a business operations professional is crucial in shaping tech organisations and fostering an optimal working environment. As the new year begins, perhaps your goal for 2024 is getting into tech; it is 100% achievable even without having a technical background. To become a leader, particularly a female in the tech startup industry, Bukola says you need the right skill set, determination, innovative mind, and courage—akin to Queen Amina leading a male-dominated battlefront. Bukola Osuntuyi is passionate about contributing to African tech startups by exploring innovative and strategic ways to foster business sustainability. You can connect with her on LinkedIn at Bukola Osuntuyi and Facebook at Bukola Osuntuyi. Opportunities In partnership with Spurt!, Oui Capital is hosting the 2nd edition of the African Amazon Masterclass for female founders taking bold steps to build & execute on the African continent. Apply by March 18 In collaboration with AfriGloCal VC, a venture capital firm building the African future by investing in entrepreneurs with global perspectives and innovative solutions, Lagos Innovates unveils its latest initiative, the Female Founders
Read MoreBreaking: Chipper Cash lays off employees after suspending US operations
One week after suspending its services in America, Chipper Cash has laid off 20 employees in its UK and US business, three people affected by those layoffs told TechCabal. Today’s layoffs affected at least two company executives, the same people said. Ham Serunjogi, the company’s CEO, two of his brothers, Nuwa and Tefiro Serunjogi, Chipper’s co-founder Maijid Moujaled, and brother Ryan Moujaled, are the only members of the team in the US, said a former employee who wished to remain anonymous. Chipper Cash did not respond to TechCabal’s request comments. In a blog post published today, Ham Serunjogi announced plans to relocate “a handful” of US and UK-based positions to African markets like South Africa, Ghana, and Nigeria. Exclusive: Wasoko exits Zanzibar, pauses Uganda and Zambia operations in profitability push The fintech company, backed by Jeff Bezos’s Bezos expedition, laid off 15 people and slashed salaries by 25% for its UK and US employees in December but insisted its business was “doing very well.” While Chipper told US customers to withdraw their funds urgently, Serunjogi told The Information the suspension had a “very small impact on very few people, relatively speaking.” It is unclear how many of the company’s customers are in the UK and US. “Chipper expected profitability within three months, but that will not happen. So, they are laying off employees in the US and the UK,” an ex-employee told TechCabal. In the past year, four rounds of layoffs at the company have affected several high-profile executives, including Alicia Levine, the Chief Operating Officer and Leon Kiptum, its country director for Kenya. Chipper Cash had previously cut salaries of its U.S. and U.K. staff by 25% but allowed them to work four days per week. Before suspending its U.S. operations, Chipper Cash told customers to withdraw funds from their Chipper wallets. Ham Serunjogi stated to The Information that the U.S. business had a “very small impact on very few people.” The recent staff reductions indicate that Chipper is now focused on its operations in Africa, including Nigeria, Ghana, Uganda, and Rwanda. Once valued at over $2 billion, Chipper Cash has faced challenges in the last two years as the global economy slowed and venture capital funding dried up. Despite raising $300 million between 2019 and 2021 from investors like Deciens Capital, Ribbit Group, FTX, and Silver Valley Bank, the company began experiencing financial losses. One source mentioned that its monthly burn rate gradually grew to $7 million per month, possibly peaking in May 2021 after the Series C funding round. *This is a developing story
Read MoreExclusive: Wasoko exits Zanzibar, pauses Uganda and Zambia operations in profitability push
Wasoko, the Kenyan e-commerce start-up, shut down its Zanzibar office and paused operations in Uganda and Zambia weeks before it finalises a merger with MaxAB. It opened its Zanzibar office in 2022 as part of the Silicon Zanzibar initiative, a government-backed program to attract tech talents. Despite the closure of the Zanzibar office, Wasoko claims it will continue to serve as “private sector ambassador for the initiative.” The company also said its Uganda and Zambia operations are “undergoing a temporary pause as opposed to a permanent closure.” “This challenging decision was made as part of a broader company-wide restructuring to focus on the momentum we’ve built in our more mature markets,” the company told TechCabal via email. “Unfortunately, this pause in operations necessitated a reduction in staff as well.” The company did not disclose the number of people affected by the layoffs. Following the 2023 merger, several high-profile executives left Waoko, including Josh Raine, one of the company’s co-founders. Sundararaman Pattabiraman and Tridiv Vasavada, who served as CFO and CTO, also left the business. Carolyne Mwaura, the head of human resources, also left the company in February 2024. “Similar to most businesses undergoing mergers, overlaps in positions occur at every level of a company’s structure, including its executive ranks,” Wasoko said. Apart from those executive departures, the company laid off 10% of its workforce in January due to overlapping roles in the newly combined entity. “It is like the Kenyan team was swallowed after MaxAB’s arrival,” said an ex-employee who asked not to be named so they could speak freely. “They (Wasoko) are saying they are not moving their headquarters, but all its top leaders in Kenya have left. While they call it a merger or equals, we do not see where the equals are.” “Both companies have been required to make similar adjustments as a result of this merger-of-equals. This has not been an easy process given many staff on both sides have been affected,” Wasoko said, disputing that ex-employee’s version of events. Nine former employees have sued the company and allege that their exit packages were not satisfactory. “Wasoko gave us the bare minimum according to Kenyan labour laws and the process was rushed in a bid to close the merger deal,” another ex-employee said. Since its launch in 2013, Wasoko has secured $152 million across multiple financing rounds. After its initial funding round in 2015, Wasoko raised $125 million in a Series B round. This round saw participation from eight investors, with Tiger Global Management and Avenir Growth Capital leading the investment. Wasoko’s head office is in Nairobi, Kenya, but it has a presence in other African countries, including Senegal and Cote d’Ivoire. The company will conclude its merger with MaxAB by the end of March 2024. The deal started as early as mid-2023 and was only revealed to employees in December of the same year. The merger also consolidated some roles that effectively put over 100 employees out of work. Some of Wasoko’s top leaders have also left the company, including the then CFO and CTO, Sundararaman Pattabiraman and Tridiv Vasavada, respectively. The human resources head and the head of partnerships are no longer working with Wasoko. MaxAB has also taken over key departments, including finance, marketing and logistics.
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Final SASSA SRD payment dates and procedures for March 2024
This COVID-19 Social Relief of Distress (SRD) financial support program continues to assist eligible individuals and families facing hardship post-pandemic. Here’s everything you need to know about receiving your SASSA SRD March payment for the end of March batch. Second SASSA SRD payment processing window for March For those approved for the March 2024 SASSA SRD grant, payments will be processed from March 25th to March 29th, 2024. This timeframe indicates the initiation of the payment process, not necessarily the exact date the funds will be available in your bank account. Checking your payment status During the week of March 25th, keep an eye on your application status on the SASSA website (https://www.sassa.gov.za/SitePages/HomePage.aspx). You czn read how to check your SASSA application or payment status. This will provide a clearer picture of the specific date your SRD March payment will be reflected in your bank account. Important note on processing time Once your payment has been processed, it can take an additional 2-3 working days for the funds to appear in your account. So, even if you see the “processed” status on the website after March 25th, there might be a slight delay before the funds are accessible. Getting help and support SASSA remains committed to delivering the SRD grant efficiently and effectively. Their core principle is “paying the right social grant, to the right person, at the right time and place.” If you have any questions regarding the Social Relief of Distress (SRD) financial support March payment or encounter any difficulties, don’t hesitate to reach out to SASSA for assistance. Here are some helpful resources: SASSA Toll-Free Number: 0000 60.10.11 SASSA we: https://www.sassa.gov.za/SitePages/HomePage.aspx Final thoughts final SRD payment dates for March 2024 Endeavour to stay informed and exercise patience during the processing period. Using SASSA’s resources, you can be sure of a smooth experience receiving your SASSA SRD March payment.
Read MoreShowmax can air Thabo Bester documentary, court rules
Showmax has been given the green light by the Johannesburg High Court to air the controversial “Tracking Thabo Bester” documentary. The four-part documentary follows the story of Bester, who was serving a life sentence for murder and a series of rapes—a sentence passed in 2012. Bester lured women by promising them international modeling gigs via Facebook. Thabo Bester and Nandipha Magudumana had asked the court to prevent the documentary from airing because it could impact an ongoing court case centered around his 2022 prison escape. They argued that some of the documentary participants are considered witnesses in their court case. Showmax had argued that giving in to the co-accused’s demands would encroach on South Africans’ constitutional rights to access information. Showmax also argued that the documentary’s content was information already in the public domain. Handing down the judgment, Judge Wilson stated that Bester and Magundana had not presented a strong enough argument to bar the airing of the documentary. “There is no basis that I can recognise upon which [Bester & Magundana]’s relief can be granted hence, the application is dismissed,” ruled Judge Wilson. Bester escaped from prison in 2022 by faking his death with the assistance of his girlfriend Nandipha Magudumana. The latter is facing charges of aiding and abetting the escape. In May 2022, prison authorities reported that Bester had died in his cell from injuries relating to a fire that erupted in his cell. A charred body was found in the cell, which was later discovered was not Bester. Bester was later arrested in Tanzania in April 2023 following a manhunt. Magudana, who is said to have sourced the body burnt in Bester’s cell during his escape, was arrested with him and has been in custody since.
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