Drivers demand health insurance from ride-hailing firms after LagRide driver’s death
Ride-hailing drivers in Nigeria will demand health insurance packages from e-hailing companies operating in Nigeria after Adebayo Padmore, a driver for LagRide, passed away yesterday. Of the major ride-hailing companies in Nigeria, only Bolt offers health insurance to drivers, contingent on them meeting certain targets. LagRide and Uber do not offer those benefits, three drivers told TechCabal. “Our focus is to make sure all the ride-hailing companies put our members on Health Maintenance Organisation (HMO) plans,” Ibrahim Ayoade, the general secretary of the App-Based Transporters of Nigeria (AUATON), told TechCabal on a phone call today. The drivers are pushing for health insurance benefits that are not tied to performance. “We have been providing health insurance for three years,” said Femi Adeyemo, Bolt’s Local Communication manager, in a text message. But drivers disagreed, stating the feature only applied as an incentive. “Bolt has one they use as an incentive when you overwork yourself to make about 300 trips. Many people have accidents trying to win the healthcare bonus,” national treasurer for the Union, Jolaiya Moses, said on a separate call. Another driver who did not wish to be named said LagRide asked drivers to pay for their health insurance. Although Uber’s head of communications for East and West Africa, Lorraine Onduru, did not respond to TechCabal’s questions at the time of this report, this article says Uber only provides injury protection for drivers on active trips, as the mobility firm sees drivers as independent contractors, not employees. TechCabal earlier reported that Padmore died Monday morning as he prepared his routine of picking up passengers. A medical report obtained from Louis Med Hospital in Lekki showed he was pronounced dead at 5:45 am. His corpse was taken to Ibadan in his LagRide vehicle—which he was still financing, some drivers told TechCabal. Ayoade had previously condemned the LagRide’s financing model last month. He claimed the model encouraged driver partners to demand unrealistic returns from drivers. “Lack of money makes some of our members sleep in their cars on the highways. The asset financing model of some app firms does not enable drivers to save any money for themselves,” he added. Many drivers operating the e-hailing sector are like Padmore, who have made their cars home. Some of them sleep on highways to meet targets set by ride-hailing companies or personal targets they made for themselves. Padmore’s death has come with an awakening among drivers who have now united to press home health insurance demands. “We are trying to evaluate everything that happened, but further actions will be taken when we bury our colleague this weekend,” Ayoade said.
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Next Wave: Should Nigeria’s startups consider listing on its stock exchange?
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 7 January, 2024 The Nigerian Stock Market has overperformed its target since 2020 till date. Nigerian startups can take advantage of last year’s bull run to list on the Nigerian Tech Board in 2024. Ever since the Nigerian Stock Exchange Group (NGX) secured regulatory approval for the NGX tech board from Nigeria’s Securities and Exchange Commission (SEC) in 2022, it has been very serious about getting tech startups in the country to list. Temi Popoola, the new group managing director/CEO of the NGX, has been the key man in front of that campaign. At the end of 2023, Popoola was appointed group managing director/CEO, replacing a retiring Oscar Onyema , the former GMD of the demutualised Nigerian Stock Exchange Group (NGX). The rightness of this appointment may have been cemented by the moves Popoola made in 2023 while he was acting CEO. Popoola’s mission at the Nigerian bourse is driven primarily by two main goals. The first is to secure tech stocks on the NGX Tech Board, and the second is to open the market to institutional and retail investors. Popoola came close to these goals in 2023, securing three listings last year—Mecure Industries; Nigeria Infrastructure Debt Fund (NIDF); and VFD Group, a Lagos-based investment firm. All three listings contributed about ₦179 billion to the exchange’s market cap in 2023. One of the three listings, VFD Group, represented a milestone because in 2021 it invested a total of $35.6 million into three firms , including Piggytech (Nigeria’s leading savings platform). Securing this listing means that 2024 could see more tech firms cosy up to the exchange. A deadlock on first try In a country that has produced over 400 tech startups, the NGX tech board is eyeing the likes of major players or tech unicorns like Jumia, OPay, Interswitch, Flutterwave and Andela to lead the way in listing on the stock exchange. In September 2023, Popoola flew to New York to have a sit-down with Nigeria’s minister of communications, innovation and digital economy, Bosun Tijani; Flutterwave CEO, Olugbenga Agboola; and the CEO of Chapel Hill Denham, Bolaji Balogun to discuss the possibility of Flutterwave listing on the stock exchange. The meeting was not widely publicised, but there is a viewing link to it. Top of the agenda at that meeting was a plea made by Popoola to Flutterwave to list. He even offered a naira listing to get the tech firm to list. Flutterwave has yet to make any commitments to the bourse. To list or not? It is easy to get worried about the many things that could go wrong if a tech firm goes to the IPO market. Whether a listing happens on the NASDAQ or NGX, stock prices can tank. Jumia’s shares plummeted in 2019 and it is still chasing a comeback on the New York Stock Exchange (NYSE) to the initial price of $14.50 apiece it listed with. Egyptian-born and UAE-based mobility startup, Swvl, endured a similar rocky start when it listed on the NASDAQ; its stock price fell by 99% after listing at $9.95 per share. Its recent good fortunes have seen the stock price rebound to $3, after it posted its first profit in its H1 2023 results. At the same time,tech firms are often eager to remain private companies, as it protects them from being publicly-listed and easily investigated. But there is much to gain from listing on the Nigerian Tech Board. Partner Content: Web Summit Qatar is partnering with The FutureList to invite top African tech startups to exhibit in Doha in February 2024. Read all about it here. Since 2020, Nigerian equities have supercharged the investment ecosystem. In that same year, Bloomberg named the exchange as the best-performing stock market from 93 global indexes. The trend has continued upward since then. Publicly available data reported by TechCabal on Friday showed that the stock market has consecutively opened the New Year since 2021 on a high. All through last year, the Nigerian stock exchange recorded a 45.9% growth, driven by oil, gas, banking and tech stocks. Around September last year, popular conversations in private spaces were that if you put ₦1 million in any tech stock, you would get at least ₦5 million, if not more. Last year, the share prices of three publicly-listed Nigerian tech companies—Chams, eTranzact and CWG—were up over 700%, according to another TechCabal report. This new year week alone, the Nigerian stock market grew 6.54% to close at a new all-time high of 79,664.66 points. Although the stock exchange experienced delistings last year, it still doesn’t diminish all the positive evidence showing that a bull run has been on for the last three years; there will always be up and down times in the stock market. Partner Content: WeTech, the community for women in Nigeria’s tech ecosystem hosted their first conference earlier this month. Here’s what it was all about. Since tech is often touted as the “new oil”, a listing by tech firms on the NGX Tech Board could be a win-win that many tech unicorns in Nigeria need. More importantly, with Popoola at the helm, there is renewed hope for the tech board which can bring more foreign, institutional, and retail participants to the market. Only 1 week is left for startups to apply to join the second cohort of the develoPPP Ventures Program and receive €100,000 in matching funds and technical assistance. Applications close on the 31st of December 2023. If you have any questions. Please email: support@theventurespark.com Click here to learn more or start your application Joseph Olaoluwa, Senior Reporter, TechCabal. Feel free to email joseph.olaoluwa[at]bigcabal.com, with your thoughts about this
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👨🏿🚀TechCabal Daily: The mathematics of mergers
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you think glasses are pricey, brace yourself for the cost of Apple’s. The company’s first VR headset, the Vision Pro, will finally be available for preorders by January 19 at a whopping $3,499. At that size price, you’re getting 256GB of storage, Apple’s latest M2 chip, a 4K display in each eye and probably a headache too. In today’s edition LagRide driver’s death raises concerns A Wasoko MaxAB merger brings layoffs In Nigeria, MTN might disconnect Glo users Twiga’s legal chief follows CEO footsteps Nigeria’s ATM usage drops by 30% The World Wide Web3 Opportunities Mobility LagRide driver’s death raises concerns over daily targets Over 20 drivers of the Lagos state-backed ride-hailing platform LagRide, yesterday, echoed the company’s duty of care to its contractors after one driver, Adebayo Padmore died. Padmore tragically collapsed and died yesterday morning while preparing for his shift. A cause of death is yet to be ascertained, but Tumi Adeyemi, the head of the solutions for LagRide, told TechCabal that the company would launch an investigation into the matter. To its contractors though, Padmore’s cause of death is certain: a high-pressure environment and unrealistic goals. LagRide’s model: LagRide’s lease-to-own model appears generous, offering drivers brand-new GACs (SUVs and Sedans) for a ₦700,000 ($793) downpayment and daily ₦8,900 ($10.08) payments over four years. A LagRide dashboard showing daily targets. Image source: TechCabal But a leaked dashboard reveals potentially problematic terms: drivers must clock 10 hours and 150 kilometres daily which would earn the average driver ₦43,000 ($48.72)—and a mere ₦10,000 ($11.33) take home after expenses. Failing to meet these targets doesn’t result in penalties, but it drops their dashboard into a “negative daily percentage,” according to one driver. This raises questions about the feasibility of meeting such demands while managing financial pressures, potentially compromising safety and driver well-being. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. E-commerce At Wasoko and MaxAB, employees are learning about post-merger maths When Wasoko and MaxAB announced their merger in late December, the CEOs of both companies told TechCabal that the new entity would become the “clear B2B e-commerce leader in Africa.” In a sector with well-funded players like Alerzo and TradeDepot, the idea of a category king would have appealed to investors. “Shareholders on all sides are extremely excited about what is happening,” said Daniel Yu, Wasoko’s CEO. “This is a 1 plus 1 equals 3.” While investors may be grinning from ear to ear, employees are learning how disruptive mergers can be. Per the Harvard Business Review, “roughly 30% of employees are deemed redundant after a merger in the same industry.” The Scoop: Today TechCabal reported that around 400 people, or 10% of the combined workforce of Wasoko and MaxAB, will leave the company because a post-merger reality means that many roles are now overlapping. Most of the employees affected are on the product and engineering teams. Employees were told about the job cuts on a Google Meet call, and no recording was allowed, one person present at those meetings told TechCabal. There’s much more to know, like the severance package offered to employees and the state of employee stock options. Read more here. Telecoms MTN to disconnect Globacom partially GIF Source: Tenor Nigeria’s telecoms regulator today approved the partial disconnection of Globacom from MTN Nigeria today because Globacom owes about ₦6 billion ($6.7 million) in interconnect fees. The disconnection will be implemented in 10 days if Glo does not make good on its payments. The technical jargon: “If a call originates from MTN Nigeria Communications Limited, for instance, and ends on Glo Mobile network, what MTN pays Glo Mobile for terminating the call is the interconnect rate.” The standard interconnect fee for local calls in Nigeria is ₦4.30k per minute, but it adds up pretty quickly. In 2018, for instance, the total interconnect fee owed by Nigerian network operators was ₦165 billion ($186.9 million). Where does this leave customers? If a partial disconnection eventually happens, Glo’s 61.39 million subscribers will be unable to call MTN users. However, MTN users will still be able to reach Glo users. Glo now has 10 days, starting from January 8, to make good on those payments. The telco will also need to pay up on its annual operating levy, which it reportedly owes to the NCC. Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. Companies Twiga’s legal chief follows CEO’s footsteps Executives are breaking off from Kenyan startup Twiga Foods, and Daniel Ngungi, head of legal and administration, is the latest to go. In a LinkedIn post yesterday, Ngungi announced his departure from the startup. “The 4th of January 2024 marked my last day at Twiga Foods, an organization that was my home for a decade, eight years of which were on a full-time basis,” the post read. Ngungi’s exit comes days after CEO Peter Njonjo resigned from the company’s board. Yebeltal Getachew, who led Twiga’s East Africa business, also left the company in December. The legal head’s departure reinforces speculations that ex-CEO Njonjo was forced out of the company by an investor takeover. At the heart of this is a rocky 2022 which led to a $450,000 lawsuit from one of its vendors. Read more. Sell with Paystack Storefront Increase your online sales with a Paystack Storefront – a free, beautiful seller page that helps you bring creative ideas to life. Learn more at paystack.com/storefront Economy Nigeria’s ATM usage drops by 30% Image source: NIBSS Nigeria banks are seeing reduced queues at the ATM stand. Figures from a recently released KPMG report suggest that only 4 in 10 bank customers get money from an
Read MoreExclusive: Twiga legal chief departs company days after founder’s resignation
Daniel Ngungi, head of legal and administration at Twiga Foods, left the company days after TechCabal reported that Peter Njonjo, the founder and CEO, resigned from Twiga’s board. Ngungi confirmed his departure in a LinkedIn post on Monday. “The 4th of January 2024 marked my last day at Twiga Foods, an organization that was my home for a decade, eight years of which were on a full-time basis,” the post read. Ngungi’s departure comes amid what appears to be a takeover of Twiga by its investors, leading to the eventual exit of Peter Njonjo, its former CEO, confirming speculation that he was forced out of the company. Yebeltal Getachew, who led Twiga’s East Africa business, also left the company in December. TechCabal reported that cash-strapped Twiga raised $35 million in convertible bonds from Creadev and Juven, two of its existing investors, to pay 100 vendors it owed. But TechCabal learned that at least one vendor said they were not paid or notified of a payment plan despite the company’s claim that it notified around 100 vendors. Last December, a Kenyan court in Nairobi gave Twiga Foods four months to resolve its debts with Incentro, a Google Cloud reseller. At the heart of the lawsuit lies a $3 million cloud service contract Twiga signed with Incentro, back when the departing Head of Legal was still with the company. Twiga allegedly fell behind on monthly payments, leading Incentro to demand over $450,000, including accrued interest and what they claim to be missed bonus payments from Google due to Twiga’s delayed sign-offs. Twiga disputes the amount owed, questioning the contract details and claiming Incentro’s lawsuit is motivated by ulterior motives. They’ve also engaged in talks with Google Ireland directly regarding the cloud service bill. As of December 5, 2023, both parties missed a court deadline to reconcile their invoices, and the next hearing is scheduled for March 13, 2024.
Read MoreExclusive: Wasoko and MaxAB to cut overlapping workforce as merger talks advance
Wasoko, the Tiger Global-backed Kenyan e-commerce startup and MaxAB, its Egyptian counterpart, will trim roughly 10% of the combined workforce of both companies, TechCabal has learned. Both firms are in the early stages of integrating their operations ahead of the completion of a merger, which was announced in December 2023. Both companies employ around 4,000 people in Egypt and East Africa. Daniel Yu, Wasoko’s CEO, confirmed that affected employees have been notified and offered severance packages “in line with local laws.” Yu and Belal El Merghabel, MaxAB’s CEO, will remain leaders in the new entity. Wasoko and MaxAB will also allow affected employees to keep their stock options after leaving the company. Employee stock options, which allow employees to own equity shares in their employer company over a certain period, are a common incentive startups use to attract and retain top talent. Wasoko and MaxAB say merger will create a clear e-commerce leader with tens of millions of runway Yu said part of the severance package it is offering affected employees will allow them to keep their stock options. Employee stock options are commonly forfeited when employees are fired for cause. When employees terminate for other reasons, companies usually buy back shares. Over the lifetime of Wasoko, which has raised $143.6 million per Crunchbase data, has allowed employees with vested shares to sell stock three times. In December, Wasoko and MaxAB announced they were in preliminary negotiations to form a single company in a “merger of equals.” According to an early MaxAB investor, a merger would create a unicorn with a combined gross merchandise value of roughly $50 million. The CEOs of MaxAB and Wasoko declined to comment on the expected valuation of the new firm. Venture capital investors have poured money into entrepreneurs building tech companies that focused on bringing Africa’s informal wholesale market for consumer goods online. Got a Tip?We’d like to hear from you. With a nonwork phone or computer, contact the author of this article at abraham@bigcabal.com. TechCabal protects the confidentiality of its sources.
Read MoreBridging the gap: Product and user experience design in Africa’s technological revival
This article was contributed to TechCabal by Seun Alakanse. Africa’s swift rise in the technological realm stands as proof of innovation, adaptability, and resilience. As the continent embraces technology, good governance, and entrepreneurial ventures, the role of product and user experience design has become crucial in shaping this transformative journey. In this article, I explore how product and user experience design are not just shaping digital interfaces but also bridging gaps, understanding diverse needs, and fostering social change in the African context. Africa’s diversity is both its strength and challenge. From bustling urban centres to remote rural villages, the technological landscape varies significantly. Product and user experience designers are tasked with understanding this diversity. Design solutions must be inclusive, catering to users with varying digital literacy levels and access to technology. This understanding goes beyond mere aesthetics; it delves into creating interfaces that resonate with the realities of everyday African life. In a continent where technology directly impacts lives, human-centric design takes centre stage. User experience designers are crafting interfaces that are not just visually appealing but also intuitive and accessible. For instance, FarmDrive, a Kenyan startup, exemplifies inclusive design by developing a mobile application that provides smallholder farmers with access to credit based on their agricultural data. The user-friendly interface caters to users with varying levels of digital literacy, ensuring that even those new to technology can benefit from financial services. Mobile applications that facilitate agricultural practices or provide healthcare services need to be user-friendly and culturally relevant. Human-centric design ensures that technology becomes an enabler, not a barrier, to progress. Product localisation and collaboration Localisation is the cornerstone of effective product and user experience design in Africa. Local languages, cultural references, and specific market needs must be integrated into digital interfaces. For instance, Jumia, often referred to as the “Amazon of Africa,” understands the importance of localising its e-commerce platform. By supporting diverse payment methods and integrating local languages, Jumia ensures that the online shopping experience is tailored to the specific needs and preferences of customers across the continent. E-commerce platforms, for instance, must support diverse payment methods prevalent in different African regions. This adaptation ensures that technology aligns seamlessly with local contexts, fostering trust and user engagement. The collaborative spirit pervading Africa’s tech ecosystem echoes the principles of design thinking. Inclusive design processes that involve stakeholders, developers, and end-users are becoming commonplace. Collaborative design thinking generates innovative solutions by leveraging collective intelligence. By including diverse perspectives, designers create products that not only meet immediate needs but also have the potential for scalability and social impact. The dynamic nature of Africa’s tech landscape demands agility. Iterative prototyping and agile development methodologies allow designers to adapt swiftly to evolving requirements. Moreover, product and user experience designers are increasingly focusing on social impact. For instance, Ushahidi, a nonprofit tech company originating in Kenya, demonstrates the power of agile development for social impact. Known for its crowd-mapping platform, Ushahidi enables swift response to crises by collecting and visualizing data from diverse sources, showcasing how iterative prototyping can address real-time challenges. Designing solutions that address critical societal challenges, such as healthcare accessibility and education, can catalyse positive change. User-friendly interfaces enhance the adoption of these solutions, amplifying their impact on communities. In Africa’s swift technological growth, product and user experience design are not mere technical processes; they are bridges connecting diverse communities, innovative ideas, and social progress. Designers in Africa are not just crafting interfaces; they are crafting experiences that empower, inspire, and transform. As Africa continues its journey towards technological excellence, the synergy between innovation, good governance, and human-centric design will drive inclusive growth, making a significant impact not only on the continent but on the global stage. Africa’s digital future is not just being designed; it is being meticulously sculpted with empathy, ingenuity, and a profound understanding of the people it aims to serve.
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Exclusive: LagRide driver collapses and dies, drivers raise concerns over daily targets
Adebayo Padmore, a driver with LagRide, the Lagos state-backed ride-hailing platform that launched in 2022, died this morning as he prepared for his routine of picking up passengers. His death will again highlight criticism of LagRide’s asset-financing model. “He collapsed at 5 a.m. this morning after checking the bonnet before resuming today’s job, and we had to revive him with buckets of water,” said Saheed Ayeni, one of three drivers who took Padmore to Louis Med hospital in Lekki, from Oniru market where he collapsed. “His last words while we rushed him here were, “Don’t let me die.” Padmore was pronounced dead minutes after a doctor attended to him. A cause of death has not been established at the time of this report. “We will conduct an autopsy to ascertain the cause of death,” said Tumi Adeyemi, the head of the solutions for LagRide. He also told TechCabal that an investigation would be launched into the matter. Padmore was previously treating an undisclosed ailment, said Saheed Ayeni and one other driver. According to them, LagRide’s daily targets put drivers like Padmore under pressure. In December 2023, Ibrahim Ayoade, the general secretary of the App-Based Transporters of Nigeria (AUATON), faulted LagRide’s financing model, claiming it encouraged driver partners to demand unrealistic returns from drivers. He said the association had critiqued this “killer model” with no success. As LagRide drivers push for lower daily repayments, it’s time to ask if vehicle financing is right for Nigeria LagRide operates a lease-to-own model that allows drivers to make a downpayment of ₦750,000 ($948) for brand-new GAC vehicles (SUV and Sedan options). Drivers spread the rest of the payments across four years by making daily payments of ₦8900 ($11.25). However, according to a dashboard seen by TechCabal, drivers are obligated to drive for 10 hours daily or a total of 150 kilometres. Meeting those targets ensures drivers earn enough to cover expenses and LagRide’s daily repayments, reducing the possibility of defaults. Drivers who work ten hours earn ₦43,000 on average and take home around ₦10,000 after expenses, said three LagRide drivers. Failing to meet targets does not attract punishment or penalties, but it puts their dashboard in a “negative daily percentage,” said one driver. LagRide’s daily targets. Image Source: TechCabal Over 20 ride-hailing drivers gathered at the hospital, echoing LagRide’s failure in its duty to drivers. “They stopped paying for our health insurance and car maintenance months ago,” said a driver who asked not to be named for fear of reprisals. The drivers have contacted the Padmore family based in Ibadan. The corpse is being moved to his hometown at the moment. *This is a developing story Got a Tip?We’d like to hear from you. With a nonwork phone or computer, contact the author of this article at joseph.olaoluwa@bigcabal.com. TechCabal protects the confidentiality of its sources.
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👨🏿🚀TechCabal Daily – South Africa’s $315 billion power plan
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’ve enjoyed our exclusive stories over the past year, you can now sign up to receive them as soon as they’re published. Receive breaking news alerts directly to your inbox. Stay informed with crucial updates by clicking this link. In today’s edition Swvl swerves towards profitability South Africa’s $315 billion power plan Nigeria’s stablecoin launches in February Cellulant’s quiet layoffs Microsoft and OpenAI face fresh lawsuit The World Wide Web3 Job openings Companies Swvl swerves towards profitability GIF source: Tenor Mobility startup Swvl just flipped the script with the announcement of its first-ever net profit of $2.1 million. The company also posted an operating profit of $13.4 million. Compared to H2 2022 when the company posted $56 million in operating losses, this is a huge swerve! Swvl’s reversal of fortune from struggling to profitable business is notable, as the company has faced recent struggles such as currency devaluation in Egypt, its biggest market, and reduced appetite from investors to back startups, resulting in its woes on the public market. So how did Swvl turn the tides? Muktar Oladunmade has the deets in From Bleed to Bloom: Swvl Posts First Ever Profits. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Energy South Africa’s $315 billion power plan Image Source: ESI Africa So here’s the good news: South Africa has plans to end load-shedding for good. The bad news though, is that it will take a couple of years. Last week, energy minister Gwede Mantashe published the country’s Integrated Resource Plan (IRP) which is basically South Africa’s plan for stable electricity supply from now till 2024. Ending power cuts and meeting demands: The IRP sets out two timeframes: 2023–2030 to stabilise South Africa’s power and end load-shedding, and 2031–2050 to generate enough power for the future. The plan involves various energy sources like gas, solar, wind, and batteries to eliminate load-shedding. An ironic emoji, but load shedding in South Africa has worsened since 2007. The country suffered at least 4,000 hours of blackouts last year—that’s about half a year without electricity! To solve this present problem, the IRP may see South Africa add new power sources—6,000MW of gas, 1,500MW solar, 3,000MW wind, and 2,000MW battery storage—by 2027. All of this is pretty expensive too, with costs ranging from R5.9 trillion ($315 billion) to R8.4 trillion ($449 trillion). Will Eskom survive till then? The plan notes that Eskom will continue to provide energy to the country, but that may not come to fruition as the struggling electricity-generating company is at risk of shutting down for harmful emissions. Its 2023 results showed that the company is emitting more harmful particles in the air with every watt it produces. The company’s former CEO also said several private companies are gearing up to provide whatever electricity Eskom cannot supply. We can see this happening with energy startups on the continent, last year, raising over $500 million. This includes a $48 million raise by South African solar energy startup Wetility. Meanwhile, if you’ve got comments on the IRC, you’ve got till February 23, 2024, to accept the minister’s invite for comments or you’ll have to forever hold your peace. Economy Nigeria’s stablecoin launches in February Image Source: Google In more ironic news, Nigeria’s apex bank has confirmed that the country’s stablecoin, the cNGN, will launch on February 27, 2024. Why is this ironic? Well, in October 2023, the World Bank listed the naira as one of the worst-performing currencies in Africa, stating that the currency fell by 40% in 2023. Another report states that the naira unexpectedly dropped by 67% in 2023. While you’d think that the Zimbabwean dollar would be top of the list for worst-performing currencies—and it is on the list—it’s not atop it because the Zim dollar has been steadily devaluing since 2009. The naira has been devaluing too, but the 40%—67% devaluation happened within such a short period, it brought the naira to everyone’s attention. So will a stablecoin help? Theoretically, stablecoins help with currency stability because they’re backed by stable assets, but as we’ve noted, the naira has been anything but stable this past year. The other promises of stablecoins—lower remittance fees + financial inclusion—might not be enough to help Nigeria’s ailing currency. And we know this because Nigeria has already implemented what many consider to be an even better digital currency, a CBDC. In October 2021, after banning banks from providing services to crypto companies, the Central Bank of Nigeria (CBN) launched Africa’s first central bank digital currency (CBDC), the eNaira, for similar uses—increasing remittance inflow and border trade and financial inclusion. eNaira, e No Gree: Two years after its launch though, the eNaira barely accounts for 0.50% of the currency-in-circulation in Nigeria. In May 2022, the IMF reported 802,000 transactions, fewer than the 919,000 downloaded wallets. By 2023, Bloomberg’s report revealed a rise in wallets to 13 million and a 63% increase in transaction value to ₦22 billion. Can the cNGN succeed where the eNaira failed? The CBN’s argument for the cNGN is that since it’s co-created by commercial banks and not controlled by the CBN like the eNaira is, interoperability will be better. But the slow uptake of the eNaira was due to several factors from a few use cases, to an uninformed public and bad tech. We predict that the cNGN will fall into the same echo chamber. What do you think? Secure payment gateway for your business Fincra payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through cards, bank transfers and PayAttitude. Create a free account and start collecting NGN payments with Fincra. Layoffs Cellulant confirms December layoffs Remember last week when we said Cellulant might have laid staff off in December 2023? TechCabal can now confirm that the layoffs
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January 2024 SASSA SRD payment and appeals
The South African Social Security Agency (SASSA) has released the payment dates for various SRD grants in January 2024. These dates are crucial for applicants and those awaiting appeals for their grants. Important notice about SASSA payment Between January and March 2024, the South African Social Security Agency (SASSA) announced the closure of all remaining SASSA and Postbank Cash points. Beneficiaries and stakeholders must note this schedule change. For further details or inquiries, individuals are encouraged to visit the official SASSA website at sassa.gov.za or contact the agency directly via phone at 0800 60 10 11. Older person’s SASSA SRD 2024 grants Commencing from Wednesday, 03 January 2024, Older Person’s SRD Grants will be disbursed. This includes grants associated with these accounts. For recipients, it’s a reassurance that their financial support is arriving promptly. Disability SRD 2024 grants Following closely, Disability Grants will be paid from Thursday, 04 January 2024, encompassing all grants connected to these accounts. SASSA aims to ensure timely and efficient support for individuals in need. Children’s SRD 2024 grants On Friday, January 5, 2024, Children’s Grants will be disbursed, providing essential aid for families and guardians caring for children in challenging circumstances. SASSA emphasizes that there’s no rush to withdraw cash immediately upon payment. Once the money reflects in the account, it remains secure until it’s required, offering peace of mind to recipients. For SASSA status check, inquiries or assistance, contact SASSA via their toll-free number: **0800 60 10 11** or visit their website at [www.sassa.gov.za]. For more updates on SASSA news, stay tuned to reliable sources for the latest information. Safeguarding against SASSA scheme frauds Protecting yourself from potential fraud within the SASSA scheme is paramount. Here are six crucial measures to avoid falling victim to scams: 1. Official communication verification Ensure all correspondence, including emails, texts, or calls claiming to be from SASSA, are legitimate. SASSA primarily communicates through official channels and doesn’t request sensitive information via unsecured means. 2. Personal information confidentiality Never share personal details like ID numbers, banking information, or PINs with unknown individuals or websites claiming to represent SASSA. Genuine SASSA representatives will never ask for such information. 3. Beware of phishing attempts Stay vigilant against phishing emails or messages asking for personal details. Verify the sender’s authenticity before responding or providing any information. 4. Verify payment dates Cross-check grant payment dates directly from SASSA’s official sources, such as their website or authorized communication channels. Do not rely solely on information received from unverified sources. 5. Report suspicious activity If you suspect fraudulent activity or receive suspicious communications, promptly report it to SASSA or local authorities. Reporting helps protect not only yourself but also others from falling victim to scams.
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Nigerian equities ride New Year wave as early bets on 2024 drive record highs
Nigerian equities have opened the new year a third consecutive time driving high returns. For the third consecutive year, the Nigerian stock market started the year strong, as investors who may have missed out on last year’s massive gains continue to take new positions. The All Share Index, a metric that tracks the movement of share prices on an exchange, hit an all-time high of 78,020.54 this week. The NGX performed beyond expectations in 2023, driven by the oil and gas and banking sectors. It reached new highs, and with 45.90% growth in 2023, the returns on the NGX beat inflation. In 2024, the NGX has picked up where it stopped last year, driven mostly by banking stocks. “The markets are usually stronger in January based on the market data in the last four years,” said Christian Orajekwe, the managing director of Cordros Capital, a Lagos-based financial services firm. “This year will be a strong year for equities. Some people missed last year’s rally and are taking early positions.” Publicly available data by the NGX showed that for three years, the stock market has opened each new year on a high. The trend began in 2020 with Bloomberg naming the Nigerian Stock Exchange (as it was called at the time) the best-performing stock market from 93 global indexes. The NGX has continued on an upward trend since then. The market is also anticipating several positive full-year reports, share buybacks and new listings to drive better performance of the sector, three analysts told TechCabal. Yet, one analyst sounded a cautionary note, predicting investors would likely sell-off to take profits in Q2.
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