Good morning!
We hope our Kenyan readers enjoyed the Mashujaa day celebration yesterday. We celebrate the hero in you!
Cybersecurity
Hackers hit Nigeria’s third largest telco
Image Source: Adaeze Chukwu/TechCabal
Some of the biggest technology stories this year have been around cybersecurity.Â
In May, a First Bank employee diverted over ₦40 billion ($24.4 million) to 98 bank accounts he controlled. In July, Hope PSB, a Nigerian microfinance bank, was hit by a ₦6.5 billion ($3.9 million) cyberattack. Several Nigerian fintechs were also hit by attacks this year.Â
Nigeria cloud providers were not spared from the onslaught. In July, a Nigerian cloud provider was hit with a ransomware attack.
And now, in what might be one of the most significant cybersecurity stories this year, Nigeria’s third-biggest mobile network provider Globacom was hacked, with staff members denied access to emails and other internal communication tools for months.
In a year-long investigation, a scenario emerged showing hackers likely gained access to Globacom’s Domain Name System (DNS) in July 2023.
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.
Banking
GT increases salaries by 40% but still spends way less than its peers
In his 2023 letter to shareholders, Segun Agbaje, the CEO of GTCO, boasted about the bank’s cost-effectiveness.Â
After raising staff salaries by 40% across the board in September, the bank will still spend less on salaries than its other Tier-1 peers.Â
If we apply a 40% increase to the bank’s 2023 personnel expenses, GTBank’s new wage will be around ₦63.1 billion ($38.7 million) annually. That is still at least ₦100 billion ($61 million) less than First Bank, Access Bank, and UBA spent on salaries last year.Â
Much of this cost efficiency is due to GT’s fewer employees—3,300—which is less than half of First Bank and Zenith Bank’s employees.Â
An assistant banking officer (ABO), only one level above entry-level, now earns ₦720,000 ($442), ten times the country’s new minimum wage.Â
I spoke to four GT employees for this story, and while they were surprised about the raise, they were all happy to tell me about the increase. One even promised me a round of drinks at any bar.Â
GTBank’s recent salary raise could spark a ripple effect across Nigeria’s banking sector, prompting other Tier-1 banks to consider similar raises. In an industry where employees often move between banks for better pay, competitors may feel pressured to adjust their compensation packages to retain top talent and remain competitive.
Issue USD and Euro accounts with Fincra
Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today.
M&A
OmniRetail acquires Traction Apps
OmniRetail, a B2B e-commerce startup, has acquired Traction Apps, a payment provider for small businesses. Both parties did not disclose the terms of the acquisition.
Traction co-founders Mayowa Alli and Dolapo Adejuyigbe will stay on as Director of Technology for Payments and Director of Operations for Payments respectively. The integration of both companies is expected to be completed by 2025.
OmniRetail offers informal retailers access to cheaper inventory through its partnerships with fast-moving consumer goods (FMCG) manufacturers and collecting bulk orders from retailers. With the acquisition of Traction Apps, OmniRetail will be eyeing a soft expansion into more SME markets.
Traction Apps provides business management services for SMEs. Retailers that want to accept cashless payments can use the company’s software point-of-sale (softPOS) technology or order a hardware POS. By integrating Traction Apps’ softPOS technology with its own embedded finance app, OmniPay, OmniRetail can better serve the SME market by offering cashless payment solutions while upselling its e-commerce platform to help retailers manage inventory and get loans.
Traction Apps has over 19,000 users and charges about 4–8% on transactions that customers make across its payments, lending, and software products. Acquiring Traction will also provide OmniRetail with another source of revenue.
While issuing hardware POS could lead to an overlap with Moniepoint, OmniRetail will likely consider pushing Traction Apps’ softPOS technology, which could give it an edge to reach more SME markets. However, this will require customer education to ensure adoption.
Introducing Pay with Pocket on Paystack Checkout
Paystack merchants in Nigeria can now accept payments from PocketApp’s 2 million+ customers. Learn more →
Telco
IHS Towers secures $439 million loan
IHS Towers, which keeps over 16,000 cell towers buzzing across Africa, has secured a $439 million loan to refinance its debt and expand operations across key markets. 58% of the funding is in US dollars while the rest is in South African Rand.
The cell tower operator will use the cash to pay off a $430 million IOU from October 2022 which is not due until 2025. But by refinancing early, IHS is hoping to snag a better deal and dodge higher interest rates down the line when it goes looking for another loan.
IHS is also reworking deals with MTN Nigeria, getting the telco to pay for its tower contracts in local currencies and US dollars. IHS is safeguarding itself against further financial hits that have seen the company lay off employees this year.
This is part of IHS’s ongoing effort to reduce its reliance on dollar-denominated debt, a key move considering how Nigeria’s currency devaluation tanked their profits in 2023.
Yet, the IHS is still walking a tightrope. This new loan comes with a floating interest rate that is tied to unpredictable financial benchmarks like Secured Overnight Financing Rate (SOFR) and Johannesburg Interbank Average Rate (JIBAR), meaning costs could fluctuate depending on the market.
CRYPTO TRACKER
The World Wide Web3
Opportunities
Nearly 200 startups, including those from Nigeria, are vying for top honours in the world’s largest pitch competition, Supernova Challenge 2.0. With a $200,000 prize pool and a top prize of $100,000, it’s a great opportunity for innovative ideas to gain recognition. Startups will be judged on their market opportunity, business model, and traction. Don’t miss this opportunity to pitch your idea to global investors and win equity-free funding. Apply now and take your startup to the next level!
The Growth4Her Accelerator is open for women that want to take their businesses to the next level. Get expert mentoring, networking, and access to alternative financing options for your SMB. Apply for Cohort 4.
Applications are open for the 2025 Acumen West Africa Fellows Programme, a fully funded opportunity for emerging leaders in West Africa. This six-month hybrid program supports individuals who are committed to solving poverty through entrepreneurship in sectors like education, agriculture, energy, and healthcare. Participants remain in their jobs while engaging in virtual and in-person learning experiences designed to build their leadership skills. Apply by November 25.
Applications are open for the 2025 Google for Startups Growth Academy: AI for Cybersecurity, a three-month hybrid program for Seed to Series A startups using AI to tackle cybersecurity challenges. Selected startups will receive equity-free support, mentoring from Google experts, and tools to scale internationally. The program includes in-person kickoff and graduation sessions, along with continuous mentorship and technical consulting. Apply by December 3.
Applications are open for the 2024 FirstBank Fintech Innovators Pitch Programme, supporting early-stage fintech startups. The program offers training, mentorship, and the chance to pitch solutions to FirstBank, investors, and industry leaders at the Fintech Summit on November 13-14, 2024. Winners will receive support and resources to bring their products to market. Apply by October 27.
Issue virtual USD cards for you and your customers
Do you want to issue virtual USD cards for your customers and business expenses? Use Kora’s APIs to issue cards, customise your card program, and set your customers’ funding limit to your risk level. Get started here.
Written by: Faith Omoniyi, Muktar Oladunmade, Emmanuel Nwosu, and Frank Eleanya
Edited by: Olumuyiwa Olowogboyega
Want more of TechCabal?
Sign up for our insightful newsletters on the business and economy of tech in Africa.
The Next Wave: futuristic analysis of the business of tech in Africa.
Entering Tech: tech career insights and opportunities in your inbox every Wednesday at 10 AM WAT.
TC Scoops: breaking news from TechCabal
P:S If you’re often missing TC Daily in your inbox, check your Promotions folder and move any edition of TC Daily from “Promotions” to your “Main” or “Primary” folder and TC Daily will always come to you.