Rwanda names Mastercard Foundation director as education minister
President Paul Kagame has appointed Joseph Nsengimana minister of education, replacing Gaspard Twagirayezu who was reassigned to head the Rwanda Space Agency. Nsengimana was one of three new cabinet members named on Wednesday. Nelly Mukazayire was also appointed Permanent Secretary in the Ministry of Sports. Prior to joining government, Nsengimana was the Director at the Mastercard Foundation Centre for Innovative Teaching and Learning, based in Kigali. The Centre works with policymakers, developers, researchers and other EdTech stakeholders to support the integration of technology in education in Africa. He was the Executive Director of Global Diversity and Inclusion, Policy, Strategy and External Partnerships at Intel Corporation. He crafted and led the implementation of Intel’s Africa public policy and corporate affairs strategy. He also led the team responsible for government affairs, education, ICT and broadband policies in Sub-Saharan Africa. As education minister, Nsengimana is expected to drive Rwanda’s education agenda which the United Nation described as “the cornerstone of the nation’s development aspirations.” Nsengimana will leverage his experience in working closely with education ministers and other stakeholders in using technology to transform their education systems. Rwanda has a literacy rate of 71.4% and the highest net enrollment rate in Sub-Saharan Africa. Yet, its education sector faces challenges including low government spending, capacity gaps, infrastructure limitation and insufficient learning materials. Addressing these challenges would be a key priority for President Kagame who was sworn in for a fourth term in August 2024. Moonshot by TechCabal is gathering Africa’s most audacious builders and thinkers in Lagos, Nigeria. You can get tickets here.
Read More
Where to buy the iPhone 16 in Nigeria, Kenya, UG, SA, & prices
The iPhone 16 series has been released, and it’s expected to generate significant demand across Africa. For consumers in Nigeria, Kenya, Uganda, South Africa, and Ghana, the iPhone 16 series will be available through various retail and telecom channels from 20th of September, 2024. Below is a guide to where you can buy the iPhone 16 series in these countries, along with the likely prices for each model in both local currency and USD. 1. Nigeria: Apple’s Official Store (Online) Jumia Nigeria (E-commerce platform) Konga (E-commerce platform) Slot Nigeria (Physical stores) Pointek (Physical stores) Likely prices (NGN): iPhone 16: ₦1,567,500 ($950) iPhone 16 Plus: ₦1,773,750 (~$1,075) iPhone 16 Pro: ₦2,186,250 (~$1,325) iPhone 16 Pro Max: ₦2,508,000 (~$1,520) 2. Kenya: Apple’s Official Store (Online) (Pre-order Available here) Jumia Kenya (E-commerce platform) Safaricom (Telecom provider offering contract deals) Phonelink Kenya (Physical electronics store) Likely prices (KES): iPhone 16: KSh 135,000 (~$950) iPhone 16 Plus: KSh 153,000 (~$1,075) iPhone 16 Pro: KSh 188,000 (~$1,325) iPhone 16 Pro Max: KSh 214,000 (~$1,520) 3. Uganda: Apple’s Official Store (Online) (Pre-order Available here) Jumia Uganda (E-commerce platform) MTN Uganda (Telecom provider offering contract deals) Banana Phone World (Physical electronics store) Likely prices (UGX): iPhone 16: UGX 3,560,000 (~$950) iPhone 16 Plus: UGX 4,000,000 (~$1,075) iPhone 16 Pro: UGX 4,950,000 (~$1,325) iPhone 16 Pro Max: UGX 5,680,000 (~$1,520) 4. South Africa: Apple’s Official Store (Online) (Pre-order Available here) iStore South Africa (Physical and online Apple reseller) (Pre-order Available here) Takealot (E-commerce platform) Vodacom (Telecom provider offering contract deals) Likely prices (ZAR): iPhone 16: R18,000 (~$950) iPhone 16 Plus: R20,500 (~$1,075) iPhone 16 Pro: R25,200 (~$1,325) iPhone 16 Pro Max: R29,000 (~$1,520) 5. Where to get iPhone 16 in Ghana Apple’s Official Store (Online) (Pre-order Available here) Jumia Ghana (E-commerce platform) Franko Trading (Physical electronics store) MTN Ghana (Telecom provider offering contract deals) Likely prices (GHS): iPhone 16: GHS 11,000 (~$950) iPhone 16 Plus: GHS 12,500 (~$1,075) iPhone 16 Pro: GHS 15,000 (~$1,325) iPhone 16 Pro Max: GHS 17,000 (~$1,520) Factors that may affect iPhone 16 prices in Africa Exchange rates fluctuations Import taxes and duties Shipping and logistics costs Retailer pricing strategies Supply and demand dynamics Local competition among brands Government regulations and policies Economic conditions in each country Note: The exchange rates used in this article are approximate and based on current average market rates. They are subject to change and may vary depending on your research, the time of purchase, the location, and the payment method. It is advisable to confirm the exact rates at the time of purchase from local vendors or financial institutions especially if you will be converting from your local currency to pay in dollars. Final thoughts on where to buy the iPhone 16 in Nigeria, Kenya, UG, SA, & prices The iPhone 16 series will be available for purchase both online and in physical stores in these countries. Major e-commerce platforms like Jumia, and telecom providers such as MTN, will offer various models, including the possibility of contract deals. For those buying through physical stores, it’s best to check with authorized Apple resellers for warranties and genuine products. With prices ranging from $950 to $1,520, depending on the model and country, consumers have plenty of options to suit their budgets and preferences.
Read More
Apply now for the new 2024 SASSA child support grant
South Africa’s Social Security Agency (SASSA) has introduced a vital initiative. The new SASSA Child Support Grant (CSG) is now accessible to infants below the age of one. This grant ensures that financial support starts from birth, promoting child wellbeing. Eligibility criteria for the new 2024 SASSA child support grant To qualify for the CSG, your child must meet these conditions: Be below the age of one. The parent or guardian must be a South African citizen. Household income must fall below the threshold set by SASSA. How to apply Applying for the CSG is straightforward and requires visiting your local SASSA office. Ensure you bring: The child’s birth certificate. Proof of income for both parents. Valid identification documents of the applicant. Benefits of the new SASSA child support grant The SASSA CSG offers significant benefits to eligible families: Provides essential financial aid from the child’s early days. Helps reduce the burden of childcare costs. Contributes to the overall wellbeing and development of infants. Application steps Follow these steps to apply for the CSG: Visit the nearest SASSA office. Submit the required documents, including your ID and the child’s birth certificate. Complete the application form provided by the SASSA office. Wait for the outcome, which is typically processed within a few weeks. Other types of grants offered by SASSA In addition to the Child Support Grant (CSG), SASSA provides various other grants to assist individuals and families in need. These include: Old age grant: For citizens aged 60 and above, offering financial support for the elderly. Disability Grant: Provides aid to individuals with permanent or temporary disabilities. Care dependency grant: For caregivers of children with severe disabilities. Foster child grant: A grant for caregivers of foster children. Grant-in-Aid: Given to those who need full-time care and are already receiving a pension. Each grant serves to support different groups, ensuring comprehensive coverage across South Africa’s most vulnerable populations. Toll-Free Enquiries For further assistance or enquiries, contact SASSA’s toll-free number:0800 60 10 11. This helpline provides guidance on all grant-related matters. Final thoughts on the 2024 new SASSA child support grant With SASSA’s CSG for children under one, early financial support is within reach. By applying early, parents can ensure that their child receives the necessary assistance from birth. Visit the nearest SASSA office today to apply and secure your child’s future.
Read More
Before you buy the iPhone 16 Pro in Nigeria, Ghana, Kenya & co
The iPhone 16 Pro is here with the typical Apple fanfare and glamour. But is an iPhone 16 Pro buy truly an upgrade from the likes of the iPhone 15 Pro? For many Apple lovers in Africa—whether in Nigeria, Kenya, or other countries—the upgrade might not be worth the hype, and definitely not the price. While Apple keeps raising the bar with the flamboyance and parade that herald iPhone launches, it does so little in actual device upgrades. In this article, we highlight the iPhone 15 Pro and 16 Pro for critical upgrade evaluation. Verdict: For those who already have the iPhone 15 Pro, a leap to buy the iPhone 16 Pro may not be a priority, especially in African markets where robust trade-in programs are lacking. Here’s a breakdown of the differences—and why you might want to hold onto your iPhone 15 Pro. Or why you may want to buy the iPhone 15 Pro instead of coughing up extra bucks just to get the iPhone 16 Pro. Performance and chipset The iPhone 16 Pro comes equipped with the A18 Pro chip, a step up from the A17 Pro found in the iPhone 15 Pro. However, the jump in performance is barely noticeable for most users. Day-to-day tasks such as browsing, multitasking, or even gaming show little difference in speed. iPhone 15 Pro: A17 Pro chip, 8GB RAM iPhone 16 Pro: A18 Pro chip, 8GB RAM If you’re upgrading for a performance boost, the iPhone 16 Pro offers little advantage. The A17 Pro already delivers a stellar experience, and for casual users, it’s more than sufficient. Camera: Same script, different actor Apple consistently hypes camera upgrades with each new iPhone, but this year’s improvement is minimal at best. The iPhone 16 Pro introduces the 48MP Fusion wide camera, which is only a slight upgrade from the iPhone 15 Pro’s 48MP wide camera. Both have an f/1.78 aperture, meaning their low-light performance is virtually identical. iPhone 15 Pro: 48MP Wide, f/1.78; 12MP Ultra Wide, f/2.2 iPhone 16 Pro: 48MP Fusion Wide, f/1.78; 12MP Ultra Wide, f/2.2 If photography is your main focus, don’t expect the iPhone 16 Pro to deliver groundbreaking results. The improvements are subtle, and the 48MP macro mode on the 16 Pro is a minor enhancement most users won’t notice. Structural and display aesthetics The iPhone 16 Pro has a 6.3-inch display, compared to the 6.1-inch screen of the iPhone 15 Pro. The increase in size is hardly noticeable in everyday use, and the OLED displays on both models offer equally vibrant colors and sharpness. While the resolution on the 16 Pro is slightly higher, the visual difference between the two devices is negligible. Maybe it’d have felt more exciting if it came as a foldable version. iPhone 15 Pro: 6.1″ display, 2556 x 1179 resolution iPhone 16 Pro: 6.3″ display, 2622 x 1206 resolution African consumers may not find the extra screen space worth the premium price. The current high cost of these devices makes it especially hard to justify. Battery and charging: Barely better Battery life is another area where the iPhone 16 Pro offers minimal improvements. The 16 Pro boasts up to 27 hours of video playback, compared to 23 hours on the 15 Pro. There’s also an upgrade to 25W MagSafe charging from the 15W on the 15 Pro, but this only shaves off a few minutes of charge time. iPhone 15 Pro: Up to 23 hours video, 15W MagSafe charging iPhone 16 Pro: Up to 27 hours video, 25W MagSafe charging For African buyers, this upgrade won’t save you from carrying your power bank around. In other words, the marginal improvement in battery life is unlikely to justify the expense. Video and audio recording The iPhone 16 Pro features Spatial Audio and Dolby Atmos support, which were also present on the iPhone 15 Pro. The quality of the stereo speakers remains the same across both models, with immersive sound, but nothing significant that sets the 16 Pro apart. Whether you’re watching movies or streaming music, the difference between the two devices will be hard to detect. Audio: iPhone 15 Pro: Stereo speakers, Dolby Atmos, Spatial Audio iPhone 16 Pro: Stereo speakers, Dolby Atmos, Spatial Audio In terms of video recording, the iPhone 16 Pro does have slight improvements. Apple has introduced Cinematic Mode in 4K at 60fps, whereas the iPhone 15 Pro is limited to 4K at 30fps. However, unless you’re a filmmaker or videographer, this won’t make much of a difference in daily use. Video: iPhone 15 Pro: Cinematic Mode in 4K at 30fps, 4K video recording at 60fps iPhone 16 Pro: Cinematic Mode in 4K at 60fps, 4K video recording at 60fps For most African users, this upgrade is unlikely to impact your experience significantly. Both devices offer excellent video and audio quality, but the iPhone 16 Pro doesn’t bring enough to the table to warrant an immediate upgrade, especially if you’re satisfied with the iPhone 15 Pro’s already impressive capabilities. Storage: Same ol’ story Despite the ever-growing need for more storage due to larger apps, higher-resolution videos, and an increase in 4K content, Apple didn’t budge on storage options. Both the iPhone 15 Pro and 16 Pro offer the same storage capacities, ranging from 128GB to 1TB. iPhone 15 Pro: 128GB/256GB/512GB/1TB iPhone 16 Pro: 128GB/256GB/512GB/1TB For those hoping that Apple would increase the base storage to 256GB, especially considering the growing digital demands, you’ll be disappointed. This lack of change underscores the point that the iPhone 16 Pro isn’t a revolutionary upgrade. Connectivity and future-proofing: Wi-Fi 7 advantage The iPhone 16 Pro supports Wi-Fi 7, compared to the 15 Pro’s Wi-Fi 6E. While this offers faster speeds and better reliability, most African users may not have access to Wi-Fi 7 infrastructure anytime soon. If you’re in an area where 4G or even 5G is the norm, this upgrade won’t matter today. iPhone 15 Pro: Wi-Fi 6E, 5G iPhone 16 Pro: Wi-Fi 7, 5G Unless you’re planning to hold onto
Read MoreThe ‘Big Four’ fallacy: Rethinking African markets
This article was contributed to TechCabal by Dotun Olowoporoku. Here’s a thought experiment: What if your fundamental assumptions about investing in African startups were wrong? What if the Big Four markets—Nigeria, Egypt, Kenya, and South Africa—aren’t actually where the greatest opportunities lie? Most VCs investing in Africa are making a classic mistake: pattern matching. They see success stories of startups like Paystack, Flutterwave, and Moniepoint in Nigeria, and think, “Aha! Nigeria is where it’s at.” But this is lazy thinking. Similar logic underlies the signal-seeking investment theses for headline markets such as Kenya, Egypt, and South Africa. It’s the equivalent of deciding in 1995 that the only place to invest in tech was Silicon Valley. The truth is, Africa isn’t one market. It’s not even four markets. It’s a complex tapestry of interconnected economies, each with its own unique challenges and opportunities. While the Big Four are undoubtedly important and proven markets, by focusing solely on them, we’re potentially missing out on the next big things. The pattern matching trap Pattern matching is a useful heuristic and cognitive shortcut that investors often use to make quick decisions. It involves recognising familiar patterns and applying previous experiences to new situations. In the context of African investments, this can lead to both positive and negative outcomes. On the positive side, pattern matching can help investors quickly identify promising startups that share characteristics with previous successes. It can streamline due diligence processes and help allocate resources efficiently. For example, recognising similarities between the opportunities presented by a new fintech idea and Paystack might lead to a good investment decision. However, the same thought pattern can potentially lead to a concentration of capital in a handful of markets, founder types, and verticals while leaving vast swathes of the continent untapped. This narrow focus creates a self-fulfilling prophecy: more investment in certain markets leads to more success stories, which in turn attracts even more investment, creating a feedback loop that further marginalises other regions. This isn’t just bad for the overlooked markets—it’s potentially detrimental for investors too. We’re competing for the same deals in the same overcrowded markets, driving up valuations and potentially missing out on hidden gems elsewhere. The intense competition in these markets can lead to inflated customer acquisition costs, team compensation, and reduced returns on investment. Moreover, pattern matching can lead to missed opportunities. By focusing solely on what has worked before, we might overlook innovative solutions that don’t fit the established patterns. This is particularly risky in a diverse continent like Africa, where unique local challenges often require novel approaches. But here’s the thing: the best opportunities often lie where others aren’t looking. And in Africa, that means looking beyond the Big Four. It requires a willingness to challenge assumptions, dig deeper into unfamiliar markets, and recognise that the next big success might come from an unexpected place or in an unexpected form. To truly capitalise on Africa’s potential, investors need to balance pattern recognition with openness to new ideas and markets. This might involve developing new frameworks for evaluating opportunities, building networks in underserved regions, or collaborating with local partners who have a deep understanding of these markets. Lakes and Oceans: A new mental model for African markets Instead of thinking in terms of countries, we need to start thinking in terms of what I call “Lakes” and “Oceans.” This isn’t just a cute metaphor—it’s a fundamental shift in how we should approach African markets. Ocean markets are the behemoths. Nigeria, Egypt, Kenya, South Africa—these are your Atlantics and Pacifics. They’re vast, with huge populations and GDPs to match. On paper, they look irresistible. But here’s the catch: they’re also shark-infested waters. Everyone’s fighting for a piece of the action, from local players to multinational corporations. The competition is fierce, and the regulatory environment can be as unpredictable as a rogue wave. Lake markets, on the other hand, are your Victorias and Tanganyikas. Countries like Senegal, Côte d’Ivoire, Morocco, or Cameroon. They’re smaller, sure, but don’t let that fool you. These markets are deep, and they’re connected. A startup that can navigate one of these lakes well can often easily slip into neighbouring waters. The real magic of Lake markets is in their interconnectedness. Many share common currencies (like the West African CFA franc), have similar regulatory environments, or are part of regional economic communities. This means that once you’ve cracked one market, expanding to others can be relatively smooth sailing. Here’s where it gets really interesting: Lake markets often have room for only one or two dominant players. If you can back the right horse early, you might just end up owning the whole lake. And if that player can then navigate from lake to lake? You’re looking at potentially geo-diverse dominance. Take the example of Wave. They didn’t just dip their toes in Senegal’s waters. They dove headfirst, became the big fish in that pond, and then swam over to Côte d’Ivoire. Before anyone knew it, they were valued at $1.7 billion. That’s not just impressive; it’s a blueprint for how to approach these markets. The Ocean strategy is about fighting for market share in crowded waters. The Lake strategy is about becoming the big fish in a small pond, and then expanding your territory pond by pond. It’s not about making a splash; it’s about creating ripples that turn into waves (pun unintended!). Charting a new course This shift has profoundly influenced our approach at Ventures Platform. We’ve begun to view African markets through a new lens, looking beyond the obvious choices. Our strategy now involves exploring calculated risks in less familiar territories, seeking out hidden opportunities that others might overlook. For founders, this paradigm shift opens up a world of opportunities. By focusing on dominating a Lake market and then strategically expanding across interconnected regions, you have the potential to build something truly transformative. The next African unicorn might not emerge from Lagos or Nairobi, but from Dakar or Abidjan. The future of African tech
Read More
👨🏿🚀TechCabal Daily – The long haul
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF It’s been a long week, but we’d like to end it on a light note. We spent half of yesterday grovelling to our Events team and we’re back with a special offer for you. For the next couple of days, we’re offering TC Daily readers 25% off tickets to Moonshot 2024. All you have to do is enter the coupon code “MSTCD” for local tickets, and “MSTCD1” for international tickets. The long road to a Kenyan fintech expansion GT Bank close to finalising Finacle move Nigeria to generate $100 billion annually from creative economy Nigeria to generate $100 billion annually from creative economy The World Wide Web3 Jobs Expansions The long road to a Kenyan fintech expansion Image source: Tenor Acquiring a fintech operating licence in Kenya is a long and complicated process. It can take up to two years to get an operating licence, mainly because the Central Bank of Kenya (CBK) has strict rules. Fintechs must prove they meet capital requirements, consumer protection, and anti-money laundering requirements. As Kenya’s fintech space grows, the CBK has become even more cautious, adding more time to the approval process. Only a few fintechs like Flutterwave have managed to extend their services to Kenya. They do this by partnering with local banks or mobile operators like Safaricom’s M-PESA or Airtel Money to enter the market. Others, like Nigerian fintech Rise, choose the M&A option. The reality is that fintech is still fairly new in Africa, and regulators are cautious due to past money laundering issues. This often complicates the process. However, licence passporting could ease this by allowing fintechs to operate across multiple countries with a single licence. Here’s Kenn Abuya reporting for TechCabal; “Imagine you have a driver’s licence issued in Kenya. With ‘licence passporting’, you could drive your car in other countries in Eastern or Southern Africa without applying for a separate driving licence from each country. No African country has adopted licence passporting.” Passporting could be a good plan. For this to work, central banks need to come together, at least regionally, to agree on rigorous standards to vet fintechs. Even a continent-wide passporting through the African Union is also a possibility; but first, the issue of money-laundering rife in fintech still poses a problem. The order of achieving this looks somewhat like this: fintechs coming together to stop money laundering and fraud, then this makes a stronger case for the passporting idea that has been floated in the space. In the meantime, fintechs looking to enter Kenya need to be prepared for a long, careful process to get fully licenced and operational. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Banking GT Bank close to finalising Finacle CBA migration Image source: GT Bank On September 9, Sterling Bank, a Nigerian tier-2 commercial bank formally announced its core banking application (CBA) migration to SeaBaaS, a locally-developed platform—a couple of days after we first reported. Yesterday, we again reported that another bank, GTBank, a tier-1 bank, is finalising a migration from Basis/Banks to Finacle, a CBA platform provided by India’s Infosys. While Sterling Bank went local, GT Bank is moving from the UK to India. Both moves are also not defined by the same reason; Sterling Bank likely chose a local custom-built platform to reduce costs and cut dollar spend. GTBank, on the other hand, opted for Finacle because of its retail banking and non-banking demands. While Finacle, according to a price comparison by Capterra—an independent software rating platform—is cheaper than Basis at base level, the former is tailored for large commercial banks that require extensive functionality, scalability, and customisations, which often drives up the cost. Usually, Nigerian banks validate their core banking options by running small trials (Proof of Concept) to test the software, checking the vendor’s reputation, and getting feedback from other banks that use the system. Local service providers have an opportunity here. They provide cheaper solutions and have timezone availability for post-migration support that may not be available in foreign companies. While it is necessary to improve the reliability of their systems, another area they could look at is offering cloud-based CBA solutions that reduce the cost of hardware infrastructure and offer scalability. However, it’s not a zero-sum case. While big Indian software providers are winning the pockets of big retail banks in Nigeria, local providers like Qore are finding business with smaller cooperatives, microfinance and digital banks, like HopePSB and Ekondo Microfinance Bank. Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Economy Nigeria to generate $100 billion annually from creative economy GIF Source: Zikoko Memes $100 billion. That’s the amount Nigeria intends to generate from its creative economy yearly. If you’ve followed the Nigerian movie industry closely—where films regularly hit ₦1 billion ($604,000) in box office revenue—and the Afrobeats to the world movement, you’d agree that these numbers are achievable. However, the current contribution of Nigeria’s creative economy is a far cry from those figures. At $5 billion, the sector contributes just 1.2% to the country’s GDP. Despite the abundant talent and cultural richness, challenges such as inadequate infrastructure, funding constraints, and certain policy gaps have hindered increased contribution by the creative economy to the GDP. Hannatu Musa Musawa, Nigeria’s Minister of Art, Culture and the Creative Economy is rolling up her sleeves to address those gaps. Yesterday, the Minster released an 8-point plan aimed at transforming the country’s creative economy and creating 2 million jobs. The Ministry will focus on areas like film production, music, fashion, and digital content creation. Key elements of the plan include improving access to funding
Read MoreNASDAQ-listed Lesaka will finalise $85 million Adumo acquisition in October
NASDAQ-listed South African fintech Lesaka Technologies will finalise its $85 million acquisition of fintech startup Adumo in October 2024 after receiving approval from shareholders and South Africa’s Competition Commission. First announced in May, the deal will expand Lesaka’s consumer and SME merchant financing services into Botswana, Kenya, Namibia, South Africa and Zambia. “This acquisition allows us to offer payment processing, integrated payments and reconciliation solutions to SME merchants in South Africa, Namibia and Botswana,” the company said on an earnings call on Thursday. “It also allows us to enter a new market vertical, being the hospitality sector.” Through the acquisition, Lesaka claims it will reach 1.7 million customers and 119,000 merchants in the Southern African region. The company currently has 1.5 million customers. Lesaka, with a market capitalisation of $315 million, owns payment provider EasyPay, and Kazang, a card-acquiring POS device company. In February, the company acquired point-of-sale provider Touchsides for an undisclosed amount. Adumo’s acquisition will enable Lesaka to grab a greater market share in the southern African region after expanding into new markets. Competitors like YOCO are only based in South Africa. Lesaka will make more acquisitions in the coming months. “Our run rate of acquisitions is not expected to decelerate and we anticipate we will be making add-on acquisitions fairly frequently,” Group chair Ali Mazanderani said on the earnings call. “We have several potential targets which fit clearly into our stated strategy.”
Read MoreSlow licencing process is a headache for fintechs expanding to Kenya
For fintech startups expanding to Kenya, nothing is more difficult than getting an operating licence. A payment service provider (PSP) licence may take up to two years due to approval delays, forcing startups to use workarounds such as partnerships with telcos, banks and mobile money providers. “We don’t enable services that we can’t do without a licence, but what we do in Kenya is connect licenced parties,” Rachael Balsham, East and Southern Africa MD at fintech Onafriq told TechCabal at last week’s Africa Fintech Summit in Nairobi. “Safaricom’s M-PESA is licenced to run mobile money services, and we connect them to other licenced parties.” Onafriq allows businesses to send and receive money across 40 African countries but is only licenced in 12, excluding Kenya. While some fintechs secured PSP licences in other markets, the slow pace of licencing in Kenya is a major roadblock for fintechs looking to set shop in the East African country. While the Central Bank of Kenya (CBK) has talked up legal reforms to fast track fintech licencing, high market entry barriers and evolving regulations have derailed progress, which has allowed traditional players like commercial banks and telcos to remain dominant. “We are in the process of updating and amending the Payments Act, basically coming up with a new act. We hope to be able to finish that soon and also the regulations and that would guide our way forward in terms of payments service providers space,” Kamau Thugge, CBK governor, told TechCabal in June. “The CBK currently doesn’t have the capacity for thorough due diligence before issuing licences to hundreds of fintechs that have set up shop in Kenya,” said a fintech co-founder who asked not to be named. The CBK did not immediately respond to a request for comments. This problem could be fixed through licence passporting for established fintechs, according to Balsham. “Licence passporting” is a regulatory mechanism that works as a passport for fintech companies. It allows them work in different countries within a region without needing separate licences for each. Imagine you have a driver’s licence issued in Kenya. With “licence passporting”, you could drive your car in other countries in Eastern or Southern Africa without applying for a separate driving licence from each country. No African country has adopted licence passporting. “If adopted, it could make it easier for them to offer their services across borders, which can lead to lower prices, better products, and more choices for customers,” one banking lawyer told TechCabal.
Read MoreGTBank finalising change to new core banking platform
Guaranty Trust Bank (GTBank), the first Nigerian bank to post ₦905.57 billion in half-year profits, is finalising its core banking platform change to Finacle, a software built by Infosys. The bank previously used Basis, a banking software also used by Providus and SunTrust. The decision to change to Finacle was finalised in September 2023 after some of the bank’s top management and tech team visited India to broker a direct partnership, side-stepping third-party vendors. One person familiar with the matter said that change was necessary because GTBank’s previous banking software had problems, which led to occasional service disruptions. GTBank picked Finacle because it plans to integrate its banking and non-banking subsidiaries on a unified platform, said one person with direct knowledge of the matter. “Rather than having different solutions that cater to different subsidiaries, the bank chose Finacle because it has modules for GT subsidiaries like wealth management and pensions. It was a good deal,” the same person said. GTCO’s move to Finacle, which is used by at least 10 banks, including three of Nigeria’s biggest commercial banks, highlights the growing influence of Infosys. The absence of a local banking software provider and Finacle’s global leadership position in core banking software, attributed to its extensive solution offerings, versatility, and strong performance in core platform functionality, have solidified Finacle’s position in the market. One person with knowledge of the matter said CEO Segun Agbaje made the final decision. In July 2024, Agbaje shared that the bank would change its core banking software to Finacle during a presentation to flag off its ₦400 billion capital raise. “The technology needs to be better, the technology needs to be more robust. We have Finacle which is a good software that will land us where we need to go,” he said at the time. The ongoing migration, which began in the fourth quarter of 2023, is designed to avoid disruptions to GTBank’s large retail customer base, one person with direct knowledge of the process claimed. GTBank did not immediately respond to a request for comment. A change in a bank’s core banking application can cause service disruptions in the short-term. On Saturday, TechCabal reported that customers of Sterling Bank, a tier-2 Nigerian bank, could not access the bank’s app because of a migration to a new custom-built core banking application. “Changing the core banking software is like doing a heart transplant,” one industry insider said. GTCO’s transition to Finacle reflects a broader trend among Nigerian banks, driven by evolving technology requirements and the growth of digital banking. The true measure of this trend’s success will be its impact on customer service and the seamlessness of the migration process.
Read More
👨🏿🚀TechCabal Daily – Moove’s new move
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning We’re officially three weeks away from the conference that will host the most audacious thinkers and doers in African tech. Moonshot 2024 is where you can connect with industry pioneers, explore emerging trends, and discover untapped business opportunities in one of the world’s most dynamic markets. We’re hosting 4,000 guests and 75 speakers across 2 days and 9 content tracks. You can be a part of it too. Get 1 or 2 tickets to front-row seats to celebrate innovation on the continent. Moove expands into the US JKIA workers begin strike action Kenya plans tax cuts Ghana’s inflation quells to a 29-month low The World Wide Web3 Opportunities Expansions Moove expands into the US Moove co-founders Ladi Delano and Jide Odunsi “A small fish going into a big pond.” That’s how my colleague described Moove’s latest expansion into the US. The Uber-backed Nigerian startup offers financing for ride-hailing, logistics and delivery companies, deducting a percentage of the drivers’ weekly earnings to pay for the vehicles in instalments. That model hit a snag in Nigeria—one of the six countries where Moove is currently present—as drivers struggled with repayments due to high living costs and inflation. But the US is every bit different from Nigeria. With a relatively stable economy, large market size (330 million people) and reliable credit scoring systems, Moove has a chance of scoring better margins than other countries where it operated. The US has a market size that dwarfs the market size of other countries where Moove operates. The fintech’s move into the US is likely an all-electric vehicle one, mirroring its move to UAE where it operated an all-EV fleet.Although the US has seen a surge in EV adoption, with many affordable EVs, there is still an opportunity for Moove to thrive in the country’s $94.9 billion EV market. The company will be competing with other vehicle financing startups like Lendbuzz, Car Capital Technologies, and others. Moove’s move (pun unintended) into the US is its first expansion since it announced a $100 million fundraise in March. The firm hinted at an expansion into six new markets after its fundraise. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Companies JKIA workers fear job loss as they begin strike People walk at the Jomo Kenyatta International Airport on September 10, 2024. Image source: Reuters/Thomas Mukoya. Do company leases lead to takeovers? Kenyan aviation workers think so. Early on Wednesday, workers went on a strike over the country’s proposed deal with Indian conglomerate Adani Group to manage and run one of its most important assets: the Jomo Kenyatta International Airport (JKIA). Only one phrase was chanted in unison, “Adani must go.” JKIA, one of Kenya’s most-booked airports, accounted for two-thirds of all Kenyan flights in 2023. When workers went on strike, thousands of passengers were unable to travel. These workers fear that they could lose their jobs if the airport is leased to Adani. What happened to JKIA? In 2013, JKIA suffered a fire outbreak it still hasn’t recovered from. Though the government has put in money to renovate the airport, its runway and passenger terminal still remain in poor condition. Kenya is facing a debt crunch, and there’s little incentive to put in more money on any renovation plans, and this is where Adani’s point of interest comes in. Adani proposed the deal in two parts: first, it will pay for repairs to fix the airport’s terminal and runway for $1.85 billion. Then, it will run the airport independently for 30 years and keep 18% of the annual returns. While both the government and Adani preferred to keep details of the deal under wraps, news broke out that Adani, after 30 years, will keep an equity stake in the airport. Adani, known for its acquisition expansion strategy, clearly has a long-term interest in JKIA. But turning over JKIA assets to a foreign private company looks risky. The poser here is: can Kenya instead explore other public-private partnerships where Adani can fund the project and recoup their investment from JKIA’s financial returns? Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Economy Kenya plans tax cuts for individuals and companies GIF Source: Tenor The irony of Kenya’s relationship with money and debt is in how it is willing to forgo expenses in renovating one of its most important airport assets, only to turn around to reduce its tax net. Finance minister John Mbadi plans to cut value-added tax (VAT) from 16% down to 14%, and companies will pay 5% less on corporate taxes. Kenya is facing a debt-sustainability crisis, and if anything, its focus should be on making sure it meets these obligations. If you’re not familiar with economics speak, it means that Kenya needs to raise more money. Tax cuts won’t necessarily help Kenya do that. Kenya’s tax base is already short on what it owes. How will the government plug budget deficits if it cuts revenue collections? But again, the move might also suggest that Kenya still struggles with tax compliance. As at 2021, the Kenya Revenue Authority (KRA) reported a compliance rate of 59%, less than its 65% target. Kenya is between a hard place and a rock: it needs to raise money, but then, it is not collecting nearly enough in proposed tax amounts. Minister Mbadi thinks cutting taxes in the medium term will increase compliance. There is only one winner here. Reduced taxes will unburden Kenyans and free up disposable income for them to spend. We could see higher consumer spending in the coming months if this is implemented. Since its bill was
Read More