Lagos startup filed Police complaint against GetEquity founders over unpaid funds
Peppa, a startup that offers escrow services to people online shoppers, has filed a police complaint against Jude Dike and Temitope Ekundayo, the co-founders of GetEquity, a self-described “marketplace for private capital” that helps startup founders raise venture funding from retail investors. The police complaint is related to $43,000 that Peppa had raised using GetEquity, three people with direct knowledge of the matter told TechCabal. Those sources confirmed that Ekundayo, GetEquity’s COO, was invited by the police and detained for two days in connection with the complaint. He has now been released and GetEquity said it plans to institute legal action over his detention. The Alagbon division of the Nigerian Police Force did not respond to a request for information. GetEquity told TechCabal that the police complaint and the subsequent detention of its co-founder was an “intimidation tactic,” claiming the startup had already paid $29,000 out of the $43,000 raised by Peppa. GetEquity says it has now paid the outstanding amount owed. “We approached GetEquity to help us collect money from angel investors as part of a small family and friends round,” said a source at Peppa who requested anonymity to allow them to speak freely. According to the terms of that deal, GetEquity would collect these funds on behalf of Peppa and a commission for its service. “As our company had completed a Know Your Customer (KYC) process, our agreement stated that we could collect the money that had been raised whenever we were ready, and it would be wired to us,” said the person at Peppa. Two people at GetEquity confirmed that Peppa completed the funding round in July. Yet, when the company tried to collect the money it had raised, GetEquity could not pay upfront and proposed a four-week payment plan instead. GetEquity later reneged on that payment plan. GetEquity says FX volatility impacted ability to pay “As a business, we’ve had to deal with high volatility in the Nigerian exchange rates,” said Dike, CEO at GetEquity. He explained that his startup receives funds from investors looking to back startups listed on the GetEquity app. Retail investments are deposited in several currencies, while the platform pays the funds to the associated startups in US Dollars. He claimed that while the company makes provision for exchange rate volatility in the process, the “volatility of the Naira increased exponentially between 2022 and 2023.” “You had situations where if the investor makes a payment today, it takes two days for the transaction to settle, and the price of the US Dollar may have changed by as much as N200 in those two days.” Dike admitted that this extreme volatility “led us into a hole we needed to sort out with our liquidity partners.” He said the company’s outstanding payouts were worth tens of thousands of dollars without a timeline for when it suffered the financial crisis. However, Dike claims that the company eventually rectified the situation and said it entered into an agreement with Peppa to stagger those payments. At the time of the police complaint, GetEquity still owed $14,000. One person at Peppa said the company filed a police complaint only as a last resort after months of dialogue with GetEquity.
Read MoreExclusive: Retail startup Alerzo fires 100 employees in fresh layoffs
Alerzo, the e-commerce startup that raised $10.5 million in a Series A round in 2021, has laid off at least 100 people eight months after it laid off 400 employees. A company spokesperson confirmed that at least 100 roles were affected but did not share an exact figure. “As a company, we’ve invested and built an end-to-end warehouse management system that has improved process automation,” the company said in the statement. “These technological investments have enhanced warehouse performance, including our turnover and sales metrics. Unfortunately, this has meant streamlining and consolidating certain warehouse roles.” Two sources with knowledge of Alerzo’s business confirmed that most of the affected employees worked at the company’s 40 warehouses. They said implementing new software eliminated the need for several lines of approval in those warehouses, leading to several redundant roles. At least two members of staff were fired in each of the warehouses, they said. The laid-off employees will be paid one month’s salary as part of their severance package. Alerzo also said that HMO packages for affected employees would remain active until the end of the year.
Read MoreTelegram is offline in Kenya as internet authorities remain silent
All internet-related agencies and telcos are silent on the Telegram disruption that has lasted for two weeks. Telegram, a chat app with over 700 million monthly active users, has been unavailable to users in Kenya during the day, disrupting the service that has now lasted over two weeks, coinciding with the country’s ongoing college entrance examinations. While Kenya’s Communications Authority (CA) has not confirmed the disruption, there are speculations that the timing of Telegram’s outage may be linked to an attempt to curb examination malpractice. Telegram is popular in Kenya because of features like cloud backups, and large groups that can accommodate thousands of members. Telegram channels are popular in the country among media companies and other businesses, which use them to share updates with their subscribers. Telegram’s disruption has caught the attention of AccessNow, a non-profit digital rights group, which has written to three Kenyan telcos (Safaricom, Telkom, and Airtel), the ICT cabinet secretary Eliud Owalo, and Kenya’s Communications Authority (CA), seeking an explanation for the shutdown. “Blocking access to essential platforms that facilitate the exercise of rights and freedoms including freedom of expression and access to information is a violation of Article 35 of the Constitution of Kenya,” AccessNow argued in the letter. As of the time of this report, the CA, which is responsible for overseeing ICT matters in the country, remained silent on the matter. Telcos like Telkom Kenya, Safaricom, and Airtel Kenya have also kept details private from their customers about the interruption. Customers accessing Telegram via Jamii Telecoms have not reported any disruptions. TechCabal’s efforts to reach the mentioned telcos and agency via calls and text were unsuccessful. But why the partial disruption? The partial shutdown coincided with the start of the Kenya Certificate of Secondary Education (KCSE) examinations. The exams are a prerequisite to joining college or other institutions of higher education. However, rogue agents use Telegram to share examination materials for profit. Six individuals have been arrested for engaging in this vice, which has tainted the credibility of KCSE for years. The disruption may be an attempt to address cheating cases as the exams near their end later this week. It should be noted that Telegram is only offline during the day. At night, when exams are not being conducted, it runs just fine. It can also be circumvented using a virtual private network (VPN) application.
Read MoreJetstream, Ghana’s leading e-logistics startup is betting on its export loan business for growth
In addition to freight forwarding, the 4-year-old company wants to be a one-stop shop that offers hard-to-get export loans to small exporters who receive international orders they cannot finance. By owning more of the export process for small customers and enterprises alike, Jetstream Africa hopes to grow faster and become more attractive to investors ahead of its series A. Miishe Addy, Jetstream Africa co-founder and chief executive, simply wanted to help small exporters and importers in Ghana send cargo abroad. But after her company commenced operations in 2019, Addy and her co-founder, Solomon Torgbor, who had led a team in the customs unit of the global shipping liner, Maersk, quickly realized that growing a logistics business in Africa meant becoming the financial partner for her customers. For Jetstream Africa, it meant supporting small businesses with a cash advance of between $17,000 to $100,000 in asset-backed loans. The credit facility helps small exporters complete orders as international demand for quality African products grows. When Jetstream started operations in 2019, the hypothesis was that by grouping cargo together, they could reduce the rates each cargo owner had to pay. Miishe’s team thought that doing this would make it easier for SMEs in Ghana to ship anywhere they wanted to around the world. “We were retaining customers [but] their topline wasn’t growing and ours wasn’t either,” Addy told TechCabal. Despite Jetstream’s aggregation, it was still too expensive to sell or buy goods internationally. So the company’s early assumption that simply bundling cargo into container-sized units would reduce costs and spur export growth had to be modified after months of experimentation. “What we discovered is that it doesn’t matter how much you discount freight. If customers do not have enough liquidity to buy and sell goods, the discount is irrelevant,” Addy said in a call with TechCabal. Unlike other regions, African exporters are forced to take more risks when they sell goods to international buyers. “Folks who are producing goods on the continent probably have the worst payment terms of any trading parties in the world. If they’re selling cargo they don’t get paid until it gets to the buyer. If they’re buying cargo they have to pay a front,” Addy said. Since the cargo moves across great distances and are been imported or exported to people who do not know each other in person. Both parties need to trust that the goods are been shipped, contain what was ordered, and that the payment will arrive when due. African banks hesitate to offer loans to SMEs because the typical SME customer in Africa has far fewer assets than what banks are willing to accept as collateral. Trade finance—an umbrella term for the different financial arrangements that are used to source for and pay short-term trade loans—is one of the oldest banking functions. According to the World Trade Organisation, as much as 90% of global trade depends on trade financing. But in Africa, the gap between the demand for and supply of trade financing continues to widen. A 2019 estimate by the African Development Bank (AfDB) put the gap at $81.8 billion, analysts say it may have now reached $120 billion a year. A joint study released in 2022 by the WTO and the International Finance Corporation (IFC) on trade finance gaps in the four largest economies of the Economic Community of West African States (ECOWAS) — Côte d’Ivoire, Ghana, Nigeria, and Senegal — claimed that raising the share of trade supported by trade finance in the four countries to the average African level of 40% would result in an extra 8% in trade flows annually. In ten years, the gains would reach $140 billion in additional trade. Export/import logistics runs on several parallel layers. There are the practical realities of moving a shipment from its point of origin to the port, dealing with customs rules, and warehousing. There is the vagaries of dealing with shipping lines. And the exporter needs the financial muscle to pull all of this off. Said Addy: “There is no type of supply chain that is as complex as a cross-border supply chain where those three things need to not only go well, but they have to be precisely synchronized in order for a shipment to get to B.” What is new about Jetstream’s model is that the company wants to bring as many layers in the export/import process as possible under one umbrella. It first started to do this in Ghana when it acquired the licence to handle customs formalities and coordinate with shipping carriers. The industry term is clearing and forwarding. Sales from clearing and forwarding is a small chunk of Jetstream’s revenue, but gross margins from the segment can be as high as 90%, Miishe confided. For customers, taking Jetstream’s money means they do not have to wait for long to get paid, and can consequently take more orders from international customers. Due to wild fluctuations in the naira’s value relative to the dollar, Jetstream does not offer its financing product in Nigeria. Adding credit to the core business of moving goods across borders for small businesses and a growing cohort of big enterprise customers means taking on more risk. But since the company is the freight forwarder and customs agent in both countries (it recently acquired a clearing and forwarding licence in Nigeria) it also gives Jetstream Africa the opportunity to hedge its risks. Something that standalone trade financiers and merchant banks struggle with. Whenever Miishe’s company lends (typically only up to 30% of the amount required), they also get to hold 100% of the inventory in leased warehouses in addition to full control over export documents. In the case of exports, buyers make payment to Jetstream Africa which is then disbursed to the seller less loan amount, interest, and fees. The original goal of the business remained the same. By helping small businesses buy or sell internationally, Miishe and Torgbor hoped to build a venture-scale business. But to do that they needed to take
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👨🏿🚀TechCabal Daily – Bolt’s €2,000 seed
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Bard has some updates. Google’s AI service can now solve mathematical problems, and create charts and graphs so you can be one of those people who helps people “visualise data”. And unlike OpenAI’s $20 GPT-4, it’s free to use. Speaking of OpenAI, we’ve got updates on Silicon Valley’s latest power tussle in today’s edition. In today’s edition OpenAI appoints ex-Twitch executive as interim CEO Caroline Wanjihi is Bolt’s new regional director Bolt to announce winners of €2,000 seed funding today Okada Books is shutting down Vodacom to save whales using AI The World Wide Web3 Opportunities Big tech Open AI appoints ex-Twitch executive as interim CEO Emmett Shear. Image source: The Hollywood Reporter Hours after negotiating to return Sam Altman to his position, the board of directors at OpenAI yesterday appointed Emmett Shear, former CEO of streaming platform Twitch, as the interim CEO of the GPT-4 parent company. That’s three CEOs in one weekend. ICYMI: On Friday, Sam Altman was suddenly removed as CEO by the board who accused him of being shady with his communications. President and co-founder of OpenAI Greg Brockman also resigned along with other senior researchers on the team. By Sunday, investors like Microsoft and Thrive Capital who were blindsided by the removal pushed the board to consider reinstating both Altman and Brockman to their positions. A quick play: The negotiations broke down when the board rejected Altman’s condition for his comeback, which was that they step down. The board quickly appointed Shear as the new CEO after chief technology officer Mira Murati who was initially appointed acting CEO publicly aligned herself with Altman. Murati reportedly had plans to rehire Altman and Brockman in new capacities if the negotiations fell through. Microsoft, which has invested over $13 billion in Open AI, also made a quick play for Altman with CEO Satya Nadella hiring Altman and Brockman to head a newly-established AI research team at Microsoft—with Altman as “CEO” of the team. Employees want the board gone: Since the announcement of Shear as the new CEO, several employees have taken to Twitter to express their displeasure. About 505 of the company’s 700 employees have signed a letter asking the board to resign for lacking “competence and care”. The staffers, who are also threatening to resign unless Altman and Brockman are reinstated, include Murati and chief scientist Ilya Sutskever who now says he “deeply regrets” ousting Altman. Sutskever, who is also on the board, reportedly led Altman’s dismissal after the two disagreed on the potential risks of commercialising AI too quickly. Microsoft’s big picture: And if you’re wondering where 505 employees will go if they resign, Microsoft has reportedly offered all the employees slots on the new AI team Altman and Brockman are leading. Considering this, Microsoft CEO Satya Nadella’s tweet about Microsoft’s commitment to supporting OpenAI takes on a new significance. Either way, Microsoft gets what it paid for. 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. Mobility Caroline Wanjihia is Bolt’s new regional director for Africa Caroline Wanjihia Bolt has appointed a new regional director, Caroline Wanjihia, to lead its ride-hailing operations in Africa, the Middle East and LATAM markets. This move comes weeks after Bolt paused its food delivery service—Bolt Food—in Nigeria and South Africa, citing its decision to exit as “necessary to streamline resources and maximise overall efficiency as a company”. The new regional director: With a background as a Kenyan lawyer and seasoned business strategist, Wanjihia brings more than 15 years of expertise in strategy, business development, and operations, having advised global leaders such as Coca-Cola and Barclays. She is set to lead Bolt’s expansion efforts across the region, taking charge of current operations and introducing new initiatives. Wanjihia’s appointment comes at a time when Bolt is facing regulatory scrutiny in countries such as Kenya. Drivers in the country have accused the platform of operating without being registered in Kenya after the NTSA, earlier in October, delayed its licence renewal. While the NTSA renewed Bolt’s licence, the drivers have demanded that Bolt register as a corporate company in Kenya. Wanjihia’s new role will bring her to the forefront of issues like this. Mobility Bolt to give 10 Nigerian drivers €2,000 seed funding Image source: YungNollywood Buckle up, folks! Bolt will be selecting the top 10 finalists for its accelerator programme Den today. The finalists will each get €2,000 ($2,190) in seed funding. The Den accelerator programme, in partnership with the Nest Innovation Park, was originally announced in September as an incentive for its Nigerian drivers. To compete, drivers had to submit business proposals that aligned with sustainable mobility solutions. Last week, 20 drivers were shortlisted from five Nigerian cities—Abuja, Lagos, Kaduna, Kwara and Rivers The finalists will participate in a two-week boot camp, but only the top 10 will receive the €2,000 ($2,190) seed funding and access to a six-week business mentorship programme. All shortlisted candidates will present their innovative ideas to a panel at the grand finale which is set for later today. Bolt’s new vision: This initiative spotlights Bolt’s commitment to fostering innovation in sustainable transport. By empowering drivers to develop business plans aligned with Bolt’s Africa City Vision, the company aims to enhance mobility solutions in African cities. The company should also be launching the Bolt Academy this month. The company says it partnered with Coursera to create an online training programme for Nigerian drivers where they can learn and develop business development skills. Zoom out: This year, Bolt has deepened its commitment to its African drivers, hiring an African regional director as we’ve written above. It’s also opened driver engagement hubs in Kenya and Lagos to address driver concerns. Introducing: M-Pesa payments in Kenya Paystack enabled M-PESA payments for merchants in Kenya. See what Paystack has been up to in 2023 →
Read MoreDigital publishing pioneer Okada Books is shutting down after ten years
Okada Books, Nigeria’s pioneer digital publishing and bookselling platform, will shut down on November 30, 2023, citing rough macroeconomic conditions. “We explored various avenues to keep our virtual bookshelves alive but, unfortunately, the challenges we face are insurmountable,” said Okechukwu Ofili, the company’s CEO, in a statement shared on social media platform X. Okada Books was launched by Nigerian writer Okechukwu Ofili in 2013 “to simplify distributing and selling books in Nigeria.” For Nigerian writers, getting publishing contracts has always been tough and self-publishing is also expensive. Okada Books was built on making self-publishing easy while connecting writers to people who would pay for their work. With its Android application and online platform, authors could share their books directly with readers and profit from their work. According to its website, Okada Books took a 30% commission on every sale. The average book on the platform cost between N250 – N500, but pricing could be higher depending on the author’s choice. “Okada Books created a market where none existed, so it’s quite sad to see them shut down. But I am looking forward to what fills this gap,” Ruth Zakari, editor-in-chief at Zikoko, told TechCabal. Okada Books was among 12 startups selected for Google’s Launchpad Accelerator Africa in 2017. The digital publisher claimed to house a library of over 40,000 original books and 400,000 registered readers. Now that it is pulling the plug on its operations, writers who rely on the platform to monetise their works would be forced to find alternatives. The shutdown comes amid a shaky macroeconomic market for African startups. Last week, TechCabal reported that Zazuu, the fintech marketplace for cross-border payment networks in Africa that raised over $2 million from investors, shut down after failing to raise funding.
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Next Wave: The obsession over unicorns or camels is weird
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 19 November 2023 Africa investors need to learn to make VC math work instead of debating whether the continent needs unicorns or camels. VCs who focus on the math will be fine regardless. Within days of each other last week, Financial Times and Business Insider published interesting articles about investors who are buying up startups that were counted as dead in venture capital portfolios. Startups that fall into this category include the ones struggling to raise additional capital (and are facing certain extinction) because of too-high valuations from their last round. But the list also overwhelmingly includes companies that are simply not growing fast enough for VC tastes. The thesis is simple. Imagine that a solid business is at risk of shutting down because it had the misfortune to fall on the wrong side of the power law—the theory that only two out of 10 investments generate most of the profits VCs make—and is running out of capital. Almost no one will want to put in capital at the elevated valuations of 2021. But what if these companies, many of which have been silently written down by their investors, have the option to continue life as slow-growing but stable companies? According to Business Insider and the FT, some investors are offering a path to this. UK-based Resurge Growth Partners and Tikto Capital, San Francisco-based Arising Ventures and even the American private equity giant KKR are some of the firms choosing this strategy. Given the steep decline in venture capital funding made into African startups and the rise of a “VC may become PE” narrative, which I wrote about earlier this year, I want to know if this is a viable strategy for some savvy investors out there, and why not, if not. Here’s a thought experiment. If venture capital investors (and non-investor-observers) in Africa are calling for profitability from startups (some of them barely out of their seed-stage), would it not make sense to add dividend payouts to the requests? If the desire to correct the last two years of investment excesses is turning venture capitalists in Africa into equity analysts who want dividends on cash flow, why not abandon the VC game entirely? Partner Content: All eyes on the Africa’s Business Heroes fifth anniversary and grand finale: Why you should attend Much of the recent stories about African startup-land have been dour, as you well know. The unfortunate result is that former growth-at-all-costs investors are now more conservative than KKR. To my mind, there are only two forks at this junction. It is either the venture capital story is not working, or the venture capital story is working just as designed and investors misread the book all along. If the venture capital story is not working then maybe investors in Africa need to create something new. If however the philosophies that underpin venture capital are intrinsically undamaged, then we ought to look elsewhere to find the mismatch in expectations. Article continues after this ad How many startups received funding last quarter? What sector received the most funding and how many acquisitions were disclosed in the last quarter (hint not more than 7). Get the full State of Tech in Africa Report for Q3 2023 here. Downloand now I took the liberty of looking for the mismatch and it seems to me that (at least) part of the mismatch stems from seeing venture capital from at least three distorted perspectives. The first is as a social and economic restructuring vehicle, where VC funds are expected to turn the economies startups are building in around. Unfortunately, while venture-funded startups can take advantage of adverse or tail economic winds, they rarely create economic breakthroughs or pitfalls by themselves. In other words, good VC-backed startups can be created in times of economic plenty or during economic adversity, but VC-backing rarely creates prosperity or adversity. The second distorted perspective is seeing startups as a channel to build SMEs. And the third (and most egregious) perspective is treating venture capital as a means of personal enrichment without recourse to the owners of the invested capital. As a result of the distorted perspectives around VC money and the 2021 deluge of capital, VC (globally not just in Africa) has been rightly criticised. Some of that criticism has called for the entire VC model to be reorganised (especially in Africa) to create gazelles, camels or some other NatGeo-type wild animal. For the uninitiated, “camels” are startups that supposedly prioritise survivability and profitability and are valued at less than a billion (i.e are not unicorns). But the caveat to preaching and creating a new (and convenient model) of venture capital is that the more than $10 billion of VC money that has so far been invested into African companies (2020 to 2023) was attracted to the continent by a narrative of VC-style returns. Thus if anyone proposes something different (in the guise of advocating for more “reasonable” expectations. Then they have to justify why investors should prefer SME-style returns from backing African companies where there are VC-style returns to generate in other markets. Good luck to anyone having this conversation with LPs. Partner Content: Tap into the modern-nostalgia of the Tecno PhantomV flip 5G Phone Meanwhile, the investors who still retain belief in the VC-philosophy seem to have been stunned into inaction. Or they try to role-play the hardball tactics better associated with private equity investments. Both approaches are a mistake because they mix up consequences and results. Africa’s venture ecosystem does not necessarily need “camels”. It just needs an acknowledgment that most African companies in existence today public and private alike, are simply not
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The SASSA status check 2023/2024
This guide aims to assist applicants in manoeuvering the application process, understanding payment methods, using the SASSA status check, and accessing available resources. Understanding the SASSA grant application Online Application Prospective applicants can initiate the grant application via the SASSA portal. Ensuring accurate details Providing precise and verified banking and personal information during the application process is vital. Incorrect details might lead to delays or rejections in receiving the grant. Procedure for payment collection Upon approval, recipients receive SMS notifications affirming the availability of their grant payment, signifying the readiness for collection as per the outlined SASSA payment schedule. Updates and changes Changes in payment methods Recent updates include discontinuing specific payment modes, such as Bank Mobile Money Transfer, citing security concerns. However, the SASSA card remains a dependable medium for transactions and cash withdrawals, aligning with the SASSA status review criteria. Extension of card validity An announcement highlights the extension of expired SASSA Postbank Gold Cards’ validity until December 2023, ensuring uninterrupted access to funds. Check your SASSA status The SASSA website serves as a comprehensive platform to conduct the SASSA status inquiry, review payment dates, and access pertinent information regarding application procedures and eligibility criteria. To check your SASSA status, simply visit the official SASSA portal and enter your South African ID number and the phone number you used during application submission. You’ll be able to check your SASSA status with the prompts that follow. Other SASSA status check methods Applicants can track their grant application status using other avenues, including the Moya App, SMS, or WhatsApp. Understanding your SASSA status after check Your SASSA status would read either of the three including: “Approved,” “Pending,” or “Declined”. If Approved, then your funds will be available soon. If Pending, you may need to exercise more patience. But if Declined, you may need to appeal or reapply. Using the Reconsideration process The reconsideration process empowers applicants to address pending or disputed statuses by revisiting personal details, income status, and ensuring alignment with the eligibility criteria mandated by SASSA. Contacting SASSA for assistance For further SASSA inquiries or dispute resolution, individuals can use the provided contact details, including the toll-free number or email, to reach out to various SASSA offices situated across South Africa, seeking guidance regarding the SASSA check process. Final thoughts on SASSA status check 2023/2024 By leveraging available resources and comprehending the intricacies of the SASSA SRD R350 grant process, applicants can navigate through the SASSA framework with ease, ensuring a seamless application and payment experience.
Read MoreNigeria’s Central Bank postpones rate-setting meeting again as inflation soars
Nigeria’s Central Bank has postponed a crucial meeting to decide interest rates even as headline inflation worsened in the West African country in October. Data from the country’s Bureau of Statistics showed that headline inflation hit an 18-year high of 27% in October. The Monetary Policy Committee (MPC) meeting was scheduled for Monday and Tuesday but has now been moved to an unspecified date. The postponement comes as a surprise to many analysts because September’s rates meeting was also postponed without any reason. At the time, the CBN promised to communicate new dates in “due time.” This week’s meeting would have been the first rates meeting under the new CBN governor, Olayemi Cardoso, whose appointment was approved by the Senate in September. Under the acting CBN governor, Folashodun Shonubi, the bank raised interest rates twice, but Olayemi Cardoso looks to be deferring that decision. A financial markets analyst who spoke to TechCabal on the condition of anonymity criticised the bank’s decision to suspend today’s meeting, citing “poor communication” as a persistent challenge to the country’s efforts to attract foreign investors. The CBN did not share a date for when the next MPC meeting will be held.
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👨🏿🚀TechCabal Daily – Za Za Zuum
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If your Google account has been inactive for two years, it will be deleted next Friday. Starting December 1, Google will start deleting accounts that have been inactive for two years or more—or since 2021. This includes the content of the account from emails to photos and calendar appointments. To save yourself, all you have to do is take your Google account as seriously as you do your New Year Resolution—sign in once a year and then pretend it doesn’t exist. In today’s edition Zazuu shuts down OpenAI’s board closes the door on its CEO Ghana’s apex bank bans eight fintechs Nigerian state to build 250 smart schools in 14 months The World Wide Web3 Jobs Shutdowns Zazuu shuts down Zazuu founders On Saturday, London-based startup Zazuu told TechCabal that it had shut down its services just one year after raising $2 million. Why? The startup, which is a marketplace for African remittance companies, said the shutdown was due to its inability to raise more funding. Founded in 2018 by Kay Akinwunmi, Korede Fanilola, Tosin Ekolie, and Tola Alade, Zazuu has raised about $2.2 million since its founding—a $200,000 seed round in 2018, and a $2 million raise in 2022. The company attracted investors including VC firms like Founders Factory Africa and Launch Africa, as well as angel investors like irokoTV founder Jason Njoku and Kuda CEO Babs Ogundeyi. During its run, Zazuu reportedly helped over 100,000 users find the best rates for sending money to Africa. With people paying as high as 22% in remittance fees, Zazuu’s service would have been attractive with the 1.5% which it offered. Unfortunately, as CEO Akinwunmi told TechCabal, the company found it difficult to explain its business to customers and partners. The big picture: Well, the big picture here is that more African startups are falling victim to the funding drought on the continent. By Q3 2022, African startups had amassed a staggering $4 billion in funding, yet in Q3 2023, the figure has dwindled to a more modest $2.8 billion. This year, at least eight African startups have shut down and half of them—Lazerpay, WhereIsMyTransport, Hytch, Zumi—shut down due to a lack of funding. 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. Big Tech OpenAI’s board closes door on Sam Altman If you can’t beat them, just delete them. Or at least that’s what the board of directors at OpenAI is doing to CEO Sam Altman. On Friday, the parent company of ChatGPT announced the sudden departure of CEO Sam Altman after the board of directors decided he was not being “candid in his communications” and could not be trusted to move the company forward. The board’s decision came a month after Altman announced a new feature that would allow users to build their own versions of ChatGPT—a service that is barely a year old, and achieved over 100 million active monthly users in its first quarter! Everyone’s shocked: Taking a leaf from Nigeria’s ex-president, the public has expressed shock at the board’s seemingly irrational decision. Sources close to the story report that Altman only found out about the decision minutes before he was informed in a Google Meet call. Image source: Zikoko Memes Following the announcement, co-founder and president of OpenAI Greg Brockman, who was also removed as chairman of the board, also quit in solidarity with Altman. Several senior researchers at the company also followed suit. Chief technology officer Mira Murati has been appointed interim CEO while the board searches for a permanent successor. Investors were blindsided: It also appears that investors were as blindsided by the changes as Altman and Brockman. Microsoft reportedly learnt of the change one minute before the OpenAI announcement was made. Forbes also reports that other investors were shocked by the news. CEO of Khosla Ventures Vinod Khosla took to Twitter to say, “To be clear, Khosla Ventures wants @sama [Sam Altman] back at @OpenAI but will back him in whatever he does next.” CTRL + Z: The board may be trying to undo its damage as Altman and Brockman are now in talks to return to their positions. The reversal is partly due to investor intervention—with Microsoft and Thrive Capital at the helm, and threats to the value of the startup. While nothing is set in stone yet, Altman is reportedly setting conditions for his return: he wants some members of the board gone, and stronger control. If he succeeds, the CEO will bring new meaning to what doesn’t kill a person makes them stronger…or had better start running. The big question that no one has answered yet is what brought on the board’s illogical and ill-timed decision. What does “candid in his communications” mean? And what does success look like to the board if what Altman is doing isn’t enough to “move the company forward”? Introducing: M-Pesa payments in Kenya Paystack enabled M-PESA payments for merchants in Kenya. See what Paystack has been up to in 2023 → Regulation Ghana’s apex bank bans eight fintechs The Central Bank of Ghana has barred eight money transfer organisations (MTOs) from operating in the country. The eight companies include Xoom, Wise, LemFi, Transfer Go, SendValu, Aza Finance, Boss Revolution and Supersonicz. What’s happening? Per the apex bank, these fintechs don’t have the regulatory approval to operate in Ghana. The bank has also warned all financial institutions in the country to stop dealing with these fintechs. “Approved MTOs are hereby reminded to terminate their foreign exchange flows through their partner institutions only and to adhere strictly to all guidelines in respect of their operations,” the notice from the apex bank read. Ghana’s laws say companies can’t trade foreign currency without a licence. If caught doing so under Section 29.1, the companies could face a fine of up to seven hundred
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