Andela partners CNCF to train 20,000 Africans in cloud-native skills
Andela, the global talent outsourcing company that grew into a unicorn, has partnered with the Cloud Native Computing Foundation (CNCF), a Linux Foundation project, to train 20,000 Africans in cloud-native basics. This initiative aims to address the global shortage of cloud-native talents. The free three-year training will focus on Kubernetes and cloud-native technologies, enabling participants to pursue certifications like the Kubernetes and Cloud Native Associate (KCNA) and Certified Kubernetes Application Developer (CKAD). The programme will be offered to Andela’s talent marketplace of over 150,000 tech professionals, predominantly from Africa. Participants will also have access to a supportive community and mentorship opportunities. The partnership comes amid a global demand for cloud-native talents. The lack of skilled cloud professionals negatively impacted businesses including delayed projects, increased costs, and reduced competitiveness. There will be an estimated 7.5 million unfilled cloud positions globally by 2025. “By collaborating with Andela, we aim to empower African developers and bridge the global tech talent gap,” said Chris Aniszczyk, CNCF CTO. Andela CEO Carrol Chang believes there is a growing demand for skilled tech talent in Africa and that African talents can fill the global gap. “This partnership with CNCF aligns with our mission to empower African developers. By equipping them with cloud-native skills, we’re enabling them to seize opportunities in the global tech industry,” she said. Training participants will take six to nine months to achieve the Kubernates and Cloud Associate (KCNA) and Certified Kubernates Administrator (CKAD) certifications and will be selected from Andela’s talent marketplace.
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👨🏿🚀TechCabal Daily – From Yaba to Ikoyi
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Bluesky, a social media app which launched in 2021, is seeing renewed interest as an alternative to X (fka Twitter), particularly in the United States, parts of Europe, and Japan, where communities like the “Swifties” are flocking to the X competitor. This isn’t the first app to challenge Elon Musk’s X. After Meta’s much-frenzied Threads app saw a meteoric rise last year, many believed it would be the end of Musk’s self-styled “free speech” platform. Bluesky has now reached 18 million users in two weeks, and this surge may or may not have had anything to do with the recent U.S. presidential elections. If you’re curious to see whether the grass is greener (or bluer) on the other side, you might want to act quickly before someone claims your favourite username. From Yaba to Ikoyi: The exodus of Nigeria’s tech ecosystem iHub moves to a bigger office MTN Nigeria appoints new CTO and CMO TikTok takes down sexual content in Kenya World Wide Web 3 Jobs Features Yaba is losing its shine to Ikoyi as Nigeria’s tech ecosystem continues to evolve Heritage Place, Ikoyi/Image Source: Google Yaba, Lagos was once Nigeria’s dominant location for budding tech startups. Often referred to as Nigeria’s Silicon Valley, Yaba became a hub for innovation in the early 2010s. It hosted key players like Andela, CcHub, and a wave of startups that attracted global attention, including Mark Zuckerberg’s famous visit in 2016. The neighbourhood offered affordable rents and proximity to academic institutions like the government-owned University of Lagos (UNILAG), which provided a steady pipeline of young, skilled talent. For years, Yaba symbolised the energy and potential of Nigerian tech, providing a foundation for early-stage companies to thrive. Yet as companies scaled, Yaba’s aging infrastructure, traffic congestions, and limited space became drawbacks, leading tech companies to find other locations in Lagos. Ikoyi, an upscale part of Lagos, has become symbolic as Nigeria’s next tech hub. Costing around $600–$800 per square metre, Ikoyi office spaces offer more than security and high rises for tech startups; they also offer a strategic location at the heart of Lagos’ tech ecosystem. Ikoyi boasts some of Lagos’ most modern and well-maintained office buildings, like King’s Tower and Heritage Place, which meet global standards for security, environmental compliance, and functionality. Global giants and big companies out of Nigeria like Flutterwave, Meta, and Google are flocking to the upscale Ikoyi for their Nigerian offices, despite the dollar cost of real estate in the neighbourhood. As Nigeria’s tech ecosystem, now recognised as one of Africa’s Big 4, continues to boom, the move to Ikoyi could be symbolic of the status and growth these tech companies are achieving. Silicon Valley is a mindset, not a location—a fitting metaphor for this migration. Read why Nigerian biggest tech companies are betting on Ikoyi. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Companies iHub moves to a bigger office in Lavington Area iHub’s new interior at Lavington/Image Source: Kenn Abuya/TechCabal iHub, the Nairobi-based accelerator acquired by CcHub in 2019, has moved to a modern two-storey headquarters in the upscale Lavington area, Kenya, signalling its growing influence in Africa’s tech ecosystem. The new space features co-working areas, private booths, and venture capital offices for firms like TLcom and Verod-Kepple Africa Ventures, along with a media hub for film, television, and social media professionals. This expansion follows a busy year for iHub, which partnered with Safaricom and Spark Accelerator in May 2024 to support startups like Chpter and Chumz. Chpter, a social e-commerce startup, went on to raise a $1.2 million pre-seed funding round in September 2024. Since 2010, the Kenyan accelerator has directly contributed to the formation of over 170 startups. It has collaborated with CcHub to invest $1.2 million in 36 edtech startups. Startups like Twiga Foods, Mookh, and Sendy have directly benefitted from iHub’s accelerator, receiving funding, mentoring, and support. With operations across Nigeria, Rwanda, and Kenya, iHub is strengthening its pan-African footprint, connecting startups to funding and providing a growth framework for building strong companies in Africa. Its parent company, CcHub is also expanding into Togo with the launch of the Janta TechHub. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Companies MTN Nigeria appoints new CTO and CMO Image Source: Google MTN Nigeria, the country’s largest telco, has decided to look inwards to select its next leaders. The telco appointed Yahaya Ibrahim as chief technical officer (CTO) and Onyinye Ikenna-Emeka as chief marketing officer (CMO), with both executives resuming on October 14, 2024. Ibrahim joined MTN back in 2002 and has been quietly making history ever since. He helped bring Nigeria its first 4G and 5G networks and rolled out 37,000 kilometres of fibre optic infrastructure. Ikenna-Emeka, on the other hand, is MTN royalty. She’s been with the company for 23 years and has climbed every corporate ladder imaginable, from sales to broadband. She played a key role in growing MTN’s fixed broadband subscriber base to 3 million. It’s hiring season in Nigeria’s telecoms market, as Globacom, 9Mobile, Airtel, and now MTN have all announced changes to one or more executive positions since July 2024. The communications regulator recently announced a new subscriber measurement method that impacted all telcos’ subscriber numbers, with Globacom the hardest hit. The Nigerian Communications Commission (NCC) now defines an active subscriber as a user who has performed at least one revenue-generating activity in the last
Read MoreMTN Nigeria Appoints Yahaya Ibrahim as CTO and Onyinye Ikenna-Emeka as CMO
MTN Nigeria has appointed Yahaya Ibrahim as its new Chief Technical Officer (CTO), and Onyinye Ikenna-Emeka as Chief Marketing Officer effective Monday, October 14, 2024. Yahaya Ibrahim, who joined MTN in 2002, played a pivotal role in deploying Nigeria’s first 4G and 5G networks, positioning MTN as a leader in cutting-edge technology. As General Manager of Network Implementation in 2015, he oversaw the rollout of more than 37,000 kilometers of fiber optic infrastructure. Ibrahim holds a Bachelor’s degree in Statistics from the University of Abuja and a Master’s degree in Telecommunications from Birmingham City University. He has also completed executive management programs at Lagos Business School and Harvard Business School. Onyinye Ikenna-Emeka, who replaces Adia Sohwo as CMO, began her career at MTN in 2001 as a Corporate Sales Executive. She has held several leadership roles, including: Senior Manager, Corporate Account (2008-2011); General Manager, Enterprise Sales (2011-2015); General Manager, Enterprise Marketing (2015-2021); General Manager, Fixed Broad (2021-2023) and Chief Broadband Officer (2023 till date). Ikenna-Emeka contributed to the evolution of the MTN fixed broadband business which includes Fixed Wireless Access (FWA) and Fibre To The Home (FTTH) in MTN and by extension, the nation. “Under her leadership, the team has grown our fixed broadband subscriber base to over 3 million,” MTN Nigeria noted in a statement. She holds a Bachelor’s degree in Geology from the University of Calabar and an MBA in General Management from the University of Manchester. She is a Fellow of the National Institute of Marketing of Nigeria (NIMN) and the Institute of Sales and Marketing Management of Nigeria (ISMMN). She has completed executive programs in Leadership, Commercial Strategies, and Technology Innovation at Harvard, Stanford, Columbia, Said, and Lagos Business Schools. She is currently pursuing a Doctor of Business Administration (DBA) at Cranfield University’s School of Management.
Read MoreMTN Nigeria raises ₦75bn in oversubscribed commercial paper
MTN Nigeria, the country’s largest mobile network operator, has raised ₦75 billion through its commercial paper issuance program. The funds will support daily operations and meet immediate financial obligations. This concludes the Series 11 and 12 issuances under MTN Nigeria’s ₦250 billion Commercial Paper Issuance Programme. Initially targeting ₦50 billion, the offering was oversubscribed, reaching 150% with ₦75.18 billion issued, according to a filing with the Nigerian Exchange (NGX) on Friday. The oversubscription reflects strong investor confidence in the company despite a challenging financial year. MTN Nigeria reported a loss after tax of ₦514.9 billion for the nine months ending September 30, 2024, primarily due to the devaluation of the Nigerian Naira. The company faced net foreign exchange losses of ₦904.9 billion, significantly raising finance costs. Despite these setbacks, MTN Nigeria recorded robust growth in service revenue, which increased by 33.6% year-on-year to ₦2.35 trillion for the period. The growth was driven by a 52.3% surge in demand for data services and an 18% rise in fintech services. The commercial paper issuance attracted participation from asset managers, banks, insurance companies, and other institutional investors. However, pension funds were excluded due to a temporary suspension by the National Pension Commission, pending updated guidelines from the Securities and Exchange Commission.
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It’s all about location: Nigeria’s biggest tech companies choose Ikoyi
When Facebook planned to establish its first Nigeria office in 2018, Yaba was the obvious choice. Yaba had become a focal point for tech innovation, hosting startups like Andela and the accelerator CCHub. When Mark Zuckerberg visited Nigeria in 2015, Yaba was a crucial pitstop, and he praised the vibrant tech community. As Yaba’s ecosystem matured, its space constraints and aging infrastructure became more apparent. Companies began seeking out alternatives that offered more modern amenities and room for growth. Inspired by Silicon Valley’s move from crowded urban areas to expansive campuses in Menlo Park and Mountain View, Lagos tech companies shifted their focus to Ikoyi, a posh neighbourhood with larger office spaces and better infrastructure. Ikoyi has office buildings like the 14-storey King’s Tower, Heritage Place, and Famfa Tower. These buildings, priced at $600 to $800 per square meter annually, offer security, parking, and environmental standards. In 2021, Meta moved its Nigerian office to King’s Tower. Other tech giants soon followed. Flutterwave and Microsoft joined Meta at King’s Tower, while Google moved to Heritage Place, and Amazon settled in Victoria Island. Ikoyi became the ideal location for global companies like Meta to establish a foothold. Heritage place Image source: Google Why Ikoyi is the new choice location The shift was inevitable, says Aderemi Dada, CEO of Spacefinish, which designed offices for Andela, Flutterwave, and Meta. “We began to see global companies operating under a different paradigm than the local tech ecosystem,” he told TechCabal. Buildings in Ikoyi have proper maintenance structures, which is a priority for global corporations, and one thing that is lacking in buildings in places like Yaba and Marina, which has a good concentration of high-rise buildings. William Aimakhu, CEO of PWAN Perfection, an affiliate of PWAN Group, a commercial real estate provider, emphasised the strategic value of an Ikoyi address: “An Ikoyi office isn’t just an address; it’s a strategic asset. The visibility alone can increase clients’ interest (in a company), a key factor in the competitive business environment.” Famfa Tower. Image source: Google World Class Experiences Some companies, like BetKing – now KingMakers – and Canon, have created custom spaces to fit their needs. BetKing wanted a campus with recreational centers, restaurants, and studios, so Spacefinish designed a 5,000-square-meter complex for them. These multinationals also standardise office experiences across global locations, ensuring that employees in Lagos enjoy the same quality as those in the U.S. Spacefinish took six to nine months each to design the offices for Meta, Flutterwave, and Google in Ikoyi’s King’s Tower and Heritage Place. Despite Meta reducing its office space in June 2024, demand for premium buildings remains high, with an 80% occupancy rate across Lagos and Abuja. Tech companies aren’t the only ones moving to Ikoyi. Finance and consulting companies are increasingly drawn to Ikoyi’s premium spaces. Verod Capital, an African venture capital firm works out of Heritage Place alongside oil and gas companies. NumberOne Lagos (IMB Building) Image source: Google. While Ikoyi’s premium office spaces attract global giants, the high cost of leasing—denominated in dollars—remains a challenge for many local businesses. The volatility of the local currency also adds to the cost concerns locking out local startups and SMEs from these locations. Amazon’s recent setup at Number One – formerly IMB Plaza – in Victoria Island shows that while Ikoyi is popular, areas like Victoria Island and Eko Atlantic are getting more attention for their adherence to global standards. With new high-rise projects like Dangote House underway, Ikoyi’s real estate market is expected to grow significantly, adding 100,000 square meters of premium office space for local and international businesses seeking premium office spaces. “Investors are looking at macroeconomics. They’re looking at the demand. They want to ensure that they are not building buildings that will not be occupied. So the market forces are also another consideration for the type of office landscape that we have,” Dada said.
Read MoreHow digital innovation can drive Africa’s economic future
This article was contributed to TechCabl by Daniel Novitzkas According to the World Bank, access to broadband internet among the African population increased from 26 to 36% from 2019 to 2022, while the internet penetration rate (which measures the percentage of a population that has internet access) for the Southern Africa region was at 73.1 percent by January 2024. These are just some of the many statistics that provide a cursory outlook of the efforts to close the digital divide. While the gaps still exist, Africa’s journey of attaining the global standard of internet and digital access is not impossible anymore. But while internet access is one thing, do we ever ponder the positive impact digital education (digital tools and technologies to facilitate teaching and learning) and innovation can have on a community, especially if said community has previously been technologically excluded from the rest of the world? This is a conversation worth having today, especially in South Africa, where a number of people live in outlying, rural, or otherwise remotely based communities. By improving our country’s digital infrastructure, we can collectively ensure the delivery of digital education to underserved regions across the country. This has the potential to unlock a wave of cascading benefits aimed at community development and economic empowerment over the short, medium, and long term. On the surface, citizens living in remote locations could enjoy access to quality education by leveraging digital platforms from across the world, especially those that offer high-quality educational resources and courses that may not be available locally otherwise. While this ensures that community members, especially youth and adults, enjoy a number of diverse learning opportunities, it also empowers them to access the best standard of education, regardless of where they live. With access to quality education opportunities such as online courses and digital learning tools, members of rural communities can also embark on a skills development drive and acquire new skills relevant to modern industries and entrepreneurship. Citizens can be empowered to participate in a wider range of economic activities, with the potential to start their own businesses. Think of how a local community member could upskill their woodworking and open a small furniture-making business within their community, thereby creating employment opportunities for other members of the same area and passing on those skills to them. There can be no doubt about it: continued digital education and innovation in remote regions will encourage a greater culture of innovation and entrepreneurship among South Africans who gain access to market trends, business management, and technological advancements. This undertaking could play a critical role in ensuring that South Africans are not restricted to running a business locally. With the right knowledge and access to information, they could endeavour to compete with other businesses across the country and the world. Digital education further provides the opportunity to improve capacity building in our society. Teachers and other educators can access teaching resources and training programmes that can empower them to apply new teaching techniques and practices that have the potential to improve the overall quality of education within their communities. Digital education also provides the opportunity for remote learning. This would enable community members in the most rural corners, who may be logistically unable to access traditional schools, to engage in quality education and virtual training. It is in this manner that no one can be left behind. Most importantly, digital education can connect South Africans to global networks that foster collaboration, partnerships, and opportunities for learning and knowledge sharing Digital education can empower locally-based communities to share their stories, culture, and identity with the rest of the world. If used strategically, digital platforms can also preserve, promote, and educate a community’s indigenous knowledge and cultural heritage, while guaranteeing that these practices and values are passed down to younger and future generations alongside modern education. Overall, by leveraging digital education strategically, we can successfully empower citizens living in remote locations with the knowledge, skills, and resources needed to thrive in a rapidly changing global environment. To visualize this differently, consider the story of Estonia, which has aggressively driven innovation over the past decade. This effort has fostered a vibrant startup ecosystem, resulting in the proliferation of unicorns—privately held startup companies typically valued at over $1 billion. An example includes the e-hailing company, Bolt. Now think of how accelerated digital education and innovation could nurture a flourishing African startup ecosystem that offers African-centric services and products to the rest of the world. African economies would no longer need to solely rely on tourism to the continent for those interested in seeing herds of wild animals during Safari visits but can also experience the herds of African unicorns and the products and services they offer, bolstering growth for local economies and opportunities for entrepreneurs. In a world where digital education, infrastructure, and innovation remain at our fingertips, there is no reason why Africa should be left behind. ____ Daniel Novitzkas is co-founder and chairman of Specno, an app development and digital innovation agency that has helped start-ups and fully-fledged businesses alike grow and expand their operations in and outside of the country.
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CcHub-backed iHub opens new Nairobi HQ, eyes greater Pan-African collaboration
Five years after its acquisition by CcHub, iHub has moved to a sleek, two-storey headquarters in Nairobi’s upscale Lavington area, a clear sign of the accelerator’s growing influence in Africa’s tech ecosystem. iHub’s spacious new office in Lavington features an entertainment and media hub designed to provide specialised advisory support for film, television, and social media professionals. The facility also includes co-working spaces, private booths for calls, conference rooms, and dedicated venture capital offices for firms like TLcom and Verod-Kepple Africa Ventures. “We have gone through different stages of growth. Moving here means we are scaling up our work and restating our commitment to Kenya. This move is part of our strategic focus and reflects our growth phase,” Ojoma Ochai, CcHub Managing Director who heads iHub operations, told TechCabal. iHub has had a busy year, partnering with telco Safaricom and Spark Accelerator to support startups like Chaptr and Chumz. Through a partnership with the Mastercard Foundation, iHub and CcHub invested $1.2 million in 36 edtech startups. iHub’s pan-African footprint, with operations in Nigeria, Rwanda, Kenya, and Namibia, enables it to connect and support startups across the continent. This collaborative approach is a cornerstone of CcHub’s strategy to drive growth and foster innovation in Africa’s tech ecosystem. iHub connects its portfolio startups with dilutive and non-dilutive funding, ranging from seed to Series A investments. Through its syndicate model, iHub pools investors’ resources, offering funding instruments like loans, grants, and convertible notes. The typical investments range from $20,000 to $250,000. While iHub strengthens its presence in Kenya, CcHub is also expanding its footprint across Africa. In November, it will launch the Janta TechHub in Togo, a new initiative in partnership with the Togolese government. This move underscores CcHub’s commitment to supporting innovation and entrepreneurship across the continent. “It will be a CcHub managed hub – the hub belongs to the government of Togo, but we are going to set it up and run it for them,” Ochai said. “All in all, this is part of our strategy to drive growth in Kenya and provide enhanced support to the startup ecosystem and the creative community. And that’s really what the move is about,” Ochai said.
Read MoreStruggling Tantalizers paid ₦65,000 in fees to delivery apps in 2024 reflecting weak online sales
Tantalizers, Nigeria’s only publicly listed restaurant franchise, paid food delivery platforms ₦65,000 ($42*) in commissions in 2024—a stark contrast to the over ₦6 million ($5,459*) it incurred in 2023. It is the lowest amount the company has spent on service fees since joining platforms like Glovo in 2020. Despite this dramatic drop in e-commerce spend, Tantalizers, which operates about 40 franchises and corporate outlets across Nigeria, reported ₦2.1 billion in revenue by September 2024, 80% of its total revenue in 2023, a year marked by its largest e-commerce spend. Tantalizers began using delivery apps like Glovo and now-defunct Jumia Food to drive sales in 2019. By 2020, the company took a more direct approach, launching its food ordering platform and fulfilling orders with an in-house fleet of bikes, as COVID-19 restrictions caused a surge in demand for online food delivery. As a result, service fees were significant, climbing from ₦1.7 million in 2021 to ₦6 million in 2023 before declining to ₦65,000 in 2024. The reduction in service fees—commissions paid to food delivery platforms for their services—reflects poor sales on the platforms. Once a trendy restaurant chain, Tantalizers, one of the country’s oldest players, has struggled to keep up with competition. “Changing lifestyles reflected in online food ordering and home delivery has brought a number of faceless competitors into the food industry,” the company said in a 2019 financial statement. The restaurant has failed to capture the imagination of the younger demographic, with a poor 2.7-star rating on Chowdeck. The Place, one of its more trendy competitors, has 4.3 stars. The company’s struggle to compete is reflected in its financial performance and ongoing losses. For the nine months ending September 2024, Tantalizers reported a pre-tax loss of ₦231 million, following losses of ₦284 million in 2023 and ₦241 million in 2022. In October, Food Specialties and Organics and private equity firm Banklink Africa acquired a majority stake in Tantalizers for ₦1 billion. With new capital, Tantalizers will aim to reposition itself in today’s competitive restaurant scene. *Dollar conversions were made using the prevailing rate at the NAFEM window at the specified time.
Read MoreNigeria’s headline inflation quickens to 33.8% in October, puts rate hike in focus
Nigeria’s headline inflation quickened in October after a hike in fuel prices and floods in food-producing areas affected consumer prices, increasing the likelihood of another interest rate hike. Data from the National Bureau of Statistics on Friday put October’s inflation rate at 33.8%, up from 32.70% recorded in August. Headline inflation slightly accelerated in September, reversing a two-month ease. October’s food inflation quickened to 39.16%, up from 37.77% recorded in September. Although Nigeria’s harvest season helped ease food prices, flooding in key agricultural states like Borno and increased transportation costs due to a fuel hike have reversed those gains. The flood destroyed food that would have fed 8.5 million people for six months. The country’s failure to implement a 150-day waiver on food imports also quickened food inflation. October’s inflation rate will add to the worries of Nigerians experiencing the country’s worst cost-of-living crisis in decades. Soaring fuel costs, with petrol prices exceeding ₦1,000 per liter and LPG prices rising over 10%, are increasing financial burdens for Nigerians. Despite significant increases in electricity tariffs, especially for high-tier consumers, Nigerians continue to suffer from unreliable power supply, with multiple grid collapses this month. At its last Monetary Policy Committee in September, Nigeria’s Central Bank said it would continue a tightening monetary cycle, arguing that core inflation continued to rise in July and August. The Central Bank will likely maintain the benchmark lending rate again, with analysts predicting a 25 to 50 basis point hike. In September, the Bank delivered a shock 50 basis point interest rate hike, increasing borrowing costs. It is due to give its next rate decision next week.
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👨🏿🚀TechCabal Daily – Big Monie move
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! If you’re often missing TC Daily in your inbox, this is another reminder to move this email to your primary inbox. On your mobile, simply tap the three-dotted menu option and move to ‘Primary.’ On your PC, drag and drop the email in your main inbox. Also save our email sending address, newsletter@techcabal.com, to your contact list. This signals to your email service provider that you enjoy and prioritise receiving timely updates from us about Africa’s business and tech ecosystem. Moniepoint wants a commercial banking licence Carbon to resume issuing cards to customers Access Bank UK expands into Mauritius MTN Group posts 18.5% revenue slump in Q3 2024 Funding Tracker World Wide Web 3 Opportunities Fintech Moniepoint to acquire commercial banking licence Image Source: Google Africa’s latest unicorn Moniepoint is trying to secure a commercial banking licence from Nigeria’s central bank. If successful, the fintech will become the first Nigerian fintech with a commercial banking licence, allowing it to diversify its offerings, open branches nationwide, and compete with banks like Providus and Globus. The licence would allow Moniepoint to tap into the high-revenue foreign currency and treasury markets, which earned Nigeria’s top banks over ₦3.37 trillion ($2 billion) in 18 months. It also gives it a boost over competitors like OPay and Kuda, shaking up the fintech playbook in Nigeria. But the requirements of a licence are steep. Moniepoint will need to fork out $30 million for the cheapest licence, a regional bank licence which limits its geographical presence. It will also need to open physical branches which come with regulatory requirements like a strong room, loading bay, and banking hall. However, the licence would eliminate limitations imposed by its current microfinance bank status, offering a pathway to expand into corporate and investment banking. It would also show investors that the fintech is ready to embrace a more established regulatory framework. This would come in handy against a regulator that has increased its focus on fintechs and paused account openings for fintechs in April. Moniepoint, like other fintechs, responded with increased compliance hiring but a licence goes a long way to show it means business. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Fintech Carbon to start issuing cards to customers six months after halting the service Image Source: Wunmi Eunice/TechCabal Nigerian digital bank Carbon, which also holds a microfinance banking licence, will resume issuing debit cards to its customers in November, after a six-month break. In June, Carbon announced to its over 3 million customers that it will stop issuing cards. At the time, we reported on the financial logistics and expenses it would cost to issue physical cards to customers, given that most of these fintechs in Africa typically have to partner with international card scheme giants like Mastercard and Visa. The processes are often cumbersome; these startups earn in naira, so they typically have to pay partnership and agreement fees with these processors in dollars—losing money in the forex. Yet, the pause has likely allowed Carbon to restrategise on the details, pick a cost-efficient provider, and overhaul its card delivery system. “We looked at the flaws in debit card usage in Nigeria and optimised the experience to make it better for customers and businesses.” Though Carbon declined to name its new card partner, there are speculations that the fintech will opt for local card payments upstart, AfriGo, that is co-owned by the Central Bank and the Nigeria Inter-Bank Settlement System (NIBSS). In banking, tier-2 bank Stanbic IBTC will also soon start rolling out AfriGo cards. The fintech startup has stated that it considers cards as a customer retention tactic. As of 2022, 1 in 3 Nigerians above the age of 15 use debit cards, despite the growing adoption of e-payments. As banks led the introduction of cards, fintechs have likely associated them with trust. Given their limited physical presences to adopt the move-fast DNA fintechs are known for, low-trust Nigerians have still not learned to put all their money into a fintech. Yet, one poser lingers on our minds: what is Carbon’s new play to make its card distribution process cost-efficient? Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! M&A Access Bank UK expands into Mauritius with Afrasia Bank acquisition Image Source: Imgflip “When you are the largest bank in Nigeria and one of the largest banks in Africa, where do you go from here?’ Our vision is now global, very, very global.” Those were the words of Aigboje Aig-Imoukhuede, Chairman of Access Holdings, the parent company of Nigeria’s biggest bank by assets, during a presentation at the Nigeria Exchange in July. If you have been following the events of the financial services space, you’d agree that Access Bank is easily the busiest mergers and acquisitions (M&A) machine. Since the start of 2024, the bank has made a string of strategic acquisitions across Africa to achieve its goal of becoming “the world’s most respected African bank.” Two weeks after Access Bank received a crucial first approval from Kenya’s competition watchdog to acquire tier-2 commercial bank National Bank of Kenya (NBK) from KCB Group, the bank conglomerate has struck another deal in East Africa. Its UK arm, Access Bank UK has reached an agreement to acquire a majority stake in Mauritius-based Afrasia Bank, the country’s fourth-largest bank. That acquisition helps Access Bank UK expand its personal and corporate banking services to Mauritius which boasts
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