How startups are trying to address SA’s healthcare access gap
Healthcare startups in South Africa are playing their part in helping to address the inequality in the country’s healthcare sector. As the world’s most unequal country, South Africa’s lopsided wealth distribution has created a two-tiered healthcare system whose inequality mirrors that of apartheid, a system supposedly replaced by democracy 29 years ago. On the one hand, there is a mostly dilapidated public healthcare system servicing 85% of the population, and on the other hand is a world-class private healthcare system which ranks as the best on the continent. To access efficient healthcare in private institutions, employed middle-class South Africans rely on medical aid schemes which subsidise around 90% of medical expenses. Despite this advantage, medical aid costs have surged in South Africa over the years, with coverage now costing an average of over R2,000 ($102). This has forced more people into the public healthcare system which already services unemployed inhabitants who make up 33% of the country’s population. Additionally, it is characterised by understaffing, dilapidated infrastructure, and constant medical supplies shortages. In June, South Africa’s national assembly passed the National Health Insurance (NHI) act which seeks to provide universal access to quality healthcare in the country. However, according to academics, until the NHI gets to a point where it can fulfil its mandate, technology innovators still have a large role to play in plugging the current gap. “Healthcare and services promoting health as a resource in South Africa are ripe for systemic innovation that capitalises on resource scarcity,” writes Katusha de Villiers, senior project manager at Bertha Centre for Social Innovation and Entrepreneurship. “The work of social innovation provides an opportunity to develop transformative and systemic solutions that move the system as a whole closer to achieving health equity.” To that end, there are numerous startups in the country, which are innovating for healthcare equity in the southern Africa nation. Role of startups in the quest for healthcare equity One of those startups is Welo Health founded by Zanele Matome in 2020, which offers on-demand health services by connecting healthcare providers with patients via a model Matome refers to as “Uber for health.” “Our core product comprises a B2B model which allows employees who are sick at home to use our app to match with a nurse,” Matome told TechCabal. “The nurse can choose to accept the appointment and attend to the patient, after which they upload information on their dashboard which is shared with patient and insurer.” To accommodate unemployed and uninsured South Africans, the company had a B2C product which enabled delivery of medication to users. According to Matome, the service brought much needed convenience and dignity to users of the public healthcare system, but as the company pivoted to a B2B model, it slowed its focus on the product. However, after realising the need of such a service, especially in underprivileged communities, the company will be doubling down on the product after it raises its Series A round. “For people who use public healthcare facilities, you have to wake up at 5 a.m. to queue at the clinic and have nurses shouting at you the whole day. There’s no dignity in the whole process,” she said. “ So this product addresses that pain point by offering delivery services on behalf of users. It is already live for our B2B clients, but after we secure funding we will also roll it out again to the B2C market.” The company, which has so far raised $72,000 in grant funding from AlphaCode Incubate and the Bill & Melinda Gates Foundation-backed Investing in Innovation Africa (i3) initiative, claims that its B2B product offering bring in over R500,000 ($27,000) of monthly recurring revenue. As the company looks to relaunch the B2C offering amidst a significant demand, they will be hoping to see how much its social impact will contribute to the company’s bottomline. Pocket Couch is another healthtech startup addressing the need for equitable access to healthcare in South Africa. Founded in 2019 by Onkgopotse Khumalo, the company enables users to better manage their mental health. Via a mobile app, users can access therapists and mental health care experts, screening, and tracking tools as well as content specific to whatever kind of support the user might be looking for. “The whole idea started with the intention of making mental health care as accessible as possible, especially in communities where accessibility is hard,” Khumalo told TechCabal. “ We address the issues of cost, convenience and removal of stigma around mental health.” Although Pocket Couch mainly works with enterprise clients to provide its services to their employees, it appreciates its role in catering for the rest of the population. To that end, it is engaged in various ways to ensure accessibility to mental health services in a country where 30% of the population has experienced a mental disorder in their lifetime. One of those ways is engaging in advocacy work to urge the government to contribute more towards mental healthcare in the country. According to data by the National Health Institute, the South African government spends only 5% of its healthcare budget on mental healthcare projects. This comes down to $140 dollars per capita of the uninsured population in a year. In comparison, the healthcare spend in the private sector is $1,400 per capita annually, a 900% difference. “The government’s spend on mental healthcare is low compared to the vastness of the problem so we are actively engaged in policy advocacy which we hope will pave the way for efficient legislation,” Khumalo added. Additionally, the startup is increasing the participation of social workers and community-based leaders in administering care. According to Khumalo, this helps reduce the cost of administrative care which will widen the net of people able to access their services. Women’s healthcare is another area rife with access inequalities in South Africa. According to data from Statistics South Africa, only 18% of women have medical aid to access healthcare services they cannot find in public facilities. Additionally, women of colour in
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The leading African tech moves from September 2023
1. Funding: Q3 brings in the lowest funding of the year In September 2023, 22 African tech startups raised $116.7 million across 22 fully disclosed* raises. Compared to August 2023’s $243.7 million total raise, this represents a 52.11% decrease. This also represents a significant YoY decrease—about 69.6%—from September 2022 when African startups raised $383.4 million. With this, September marks the month with the second-lowest funding following March’s $66 million raise. In total, Q3 saw African startups raise $492.6 million across 67 fully disclosed deals. It’s a decline from Q2’s $877 million total raise, and an even sharper drop from Q1’s $1.3 billion. So far, African startups have raised $2.57 billion. Per region, Southern African startups made a surprising appearance in first place with $69 million in raises, about 59.1% of the total funding. This is mostly led by energy startup Wetility’s $48 million raise. West Africa comes second with $26.1 million, East Africa with $20.2 million, and North Africa with $1.4 million. Image source: Timi Odueso/TechCabal Per sector, the top three sectors for September 2023 are energy with $60 million (51.41%)—led by the Wetility raise and Kenya’s SunCulture’s $12 million raise, fintech with $27.5 million (23.56%), and retail/e-commerce with $11.6 million (9.94%). Image source: Timi Odueso/TechCabal The top five disclosed deals of the month are: South African energy startup Wetility’s $48 million debt and equity round. Kenyan energy startup SunCulture’s $12 million syndicated debt facility. Ghanaian agritech Complete Farmer’s 10.4 million pre-Series A round. Zambian fintech Lupiya’s $8.25 million Series A funding. South African retail startup Rentoza’s $6 million raise. *Note: This data is inclusive only of funding deals announced in September 2023. Raises are often announced later than when the deals are actually made. This data also excludes estimated grants from accelerators. 2. Investments: Enza Capital launches a $58 million fund In September, Kenyan-based venture firm, Enza Capital, raised $58 million to support startups on the continent. The VC company, which invests from first cheque, is also kickstarting a new shared ownership model that allows startup founders the ability to own part of the firm. Enza capital has allocated 10% of its carry pool to founders. Another VC firm, P1 Ventures, also closed a $25 million fund which it plans to invest in African businesses across fintech, SaaS, AI and healthtech ventures. 3. M&As: Risevest acquires Chaka, WhoGoHost acquires SendChamp Q3 also ended with a few acquisitions. First, earlier in the month, Nigerian cloud infrastructure company WhoGoHost acquired SendChamp, a cloud communications startup, for an undisclosed amount. Much later, Nigerian trading startup Risevest announced its acquisition of digital trading startup Chaka for an undisclosed sum. 4. Shutdowns: 54gene shuts down Last month, TechCabal also confirmed that Nigerian genomics startup 54gene is shutting down. The news was confirmed by ex-CEO Ron Chiarello. The startup, which raised $54 million since its founding in 2019, struggles through several leadership changes and impulsive spending habits. Meanwhile, founder and ex-CEO Dr. Abasi Ene-Onong launched a new genomics startup, Syndicate Bio, in the same month. 5. Sendy goes into administration, PayDay searches for a buyer September saw Kenyan logistics startup Sendy enter into administration—an independent person, Peter Kahi, will take control of the company until it can resolve its financial crisis. This comes after the company, which was reportedly burning $1 million per month in operating costs, failed to find a buyer. Meanwhile, Nigerian fintech startup PayDay also confirmed its search for a buyer in September. The company, which raised $3 million in March 2023, faced a series of challenges including contentious salary increases, impulsive management choices and faulty infrastructure. 6. Economy: Kenya joins PAPSS In September, Kenya became the tenth African country to join the Pan-African Payments and Settlement System (PAPSS). Trade secretary Moses Kuria made the announcement noting that the Central Bank of Kenya (CBK) had signed the agreement and completed all the necessary formalities. So far, the service—which is used by nine central banks—has reportedly saved African companies $5 billion in transaction charges. 7. Layoffs: mPharma lays off 150 staff One year on, and layoffs are still occurring in the tech space. In September, Ghanaian healthtech mPharma announced that it had laid off 150 employees—including 40 from its Nigerian team. Per CEO Gregory Rockson, the layoff are—unsurprisingly—due “macroeconomic conditions driven by the devaluation of the naira”. This comes 19 months after the startup raised $35 million in a Series D round. 8. Economy: Sama to provide 2,100 Kenyans with AI jobs Months after Meta cut ties with it, Kenyan content moderation firm Sama is taking a new turn. In September, the company announced a pivot from content moderation into artificial intelligence (AI). Per Kenya’s cabinet trade secretary Moses Kuria, the company was set to hire 2,100 Kenyans to work in several AI-focused teams including machine learning, and business process outsourcing (BPO). 9. Social Media: Kenya is still going after TikTok While Sama might not be interested in moderating content anymore, several other Kenyan players are. September saw Kenyan officials with a renewed drive to ban TikTok…or at least parts of it. The Kenyan Film Classification Board (KFCB) reportedly requested that TikTok disable its Live feature in the country in a meeting with TikTok CEO Shou Zi Chew. The meeting was held with the Kenyan president to discuss a petition to ban TikTok earlier received by the Kenyan Parliament. Meanwhile, similar petitions to ban TikTok have surfaced in Uganda and Egypt. 10. Global News: TikTok fined $370 million in the EU Looks like the social media company is fighting fires everywhere. In the European Union, TikTok was fined €345 million ($370 million) for violating privacy laws relating to the processing of children’s personal data. Per Ireland’s Data Protection Commissioner, TikTok committed a number of breaches between July and December 2020 including non-verification of age for underage users, and setting visibility for under-16 accounts to “public” by default. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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🚀Entering Tech #42: Building a career in content marketing
And where you can learn content marketing too. 04 || October || 2023 View in Browser Brought to you by Issue #42 Building a contentmarketing career Share this newsletter Greetings ET people Today’s edition of #EnteringTech is brought to you by our sister publication Zikoko, specifically Boluwatife Oni who graciously licensed her content to me in exchange for just one litre of ice cream. Side note: I would have done it for two. Anyway, we’ve spent the past two editions of #EnteringTech talking about marketing talents and whether they should or shouldn’t be the generalists everyone wants them to be. If you missed those, find them here and here. In today’s edition, we’ll focus on one of the marketing careers, content marketing, and how you can build a career in it too. Oh, and we’ve got a special gift for all student readers further on. by Timi Odueso & Boluwatife Oni. Tech trivia Some tech trivia to get the brain juices flowing. What is the name of the first person to ever post a video on YouTube? What is the name of the most popular content marketing platform in the world? Who is a content marketer? Google will likely answer this question in a number of ways, but in summary, a content marketer is a storyteller. You remember that one kid in school who’d narrate movies and season films during break time to a crowd of attentive listeners? That’s kinda like what a content marketer does. They identify, create and distribute engaging content to attract a target audience and get them to interact with the products or services that a business offers. Content marketers employ various processes like market research, content strategy, copywriting and search engine optimization to convert prospects into customers. It’s a bit similar to copywriting, but they’re not exactly the same thing. Copywriting is more direct and is written to persuade, sell or trigger immediate action. But content marketing involves content that provides long-term value and is a gradual attempt to build relationships with the target audience and generate leads for the business. A content marketer knows when to apply copywriting, but their entire content strategy isn’t designed to only produce short-term results. Content marketing is also sometimes considered to be digital marketing, but while they work hand-in-hand, there are slight differences in the sense that while all content marketing is digital marketing, not all digital marketing can be said to be content marketing. In content marketing, providing information to build trust is a major component of marketing. In digital marketing, online promotion is the main strategy. This involves pay-per-click advertising, like some of those (slightly annoying) unskippable ads on YouTube and other social media marketing efforts. In summary, many of the strategies in digital marketing don’t include informational content, which is central to content marketing. What skills do you need? Writing is a key skill in content marketing. Remember, you’re telling a story, so you’ll need to know the most compelling and engaging way to tell it. Search Engine Optimisation (SEO) is also necessary to help you push the content you create higher in search engine results pages. Other must-have skills include content strategy and management, social media content creation, analytics and social listening. A degree in marketing is beneficial, but not a strict requirement. You can always take content marketing courses and explore freelance or entry-level content marking opportunities to build your skills and experience. What kind of tasks do content marketers have? The day to day of a content marketer’s life may contain any or all of the following—depending on whether their line manager believes they deserve rest or not. Content Planning and Strategy: Review content marketing strategy and goals. Conduct keyword research to identify content opportunities. Plan content topics and themes. Content Creation: Write blog posts, articles, social media updates, or other types of content. Edit and proofread content for accuracy and quality. Create visual content like infographics or images if necessary. Collaborate with graphic designers, video producers, or other content creators. SEO Optimisation: Optimise content for search engines by incorporating relevant keywords. Ensure proper meta tags, headers, and formatting are used. Implement internal and external linking strategies. Content Promotion: Share content on social media platforms. Schedule and manage content distribution using social media management tools. Engage with the audience, respond to comments, and address questions. Email Marketing: Create and send email campaigns to subscribers. Segment email lists for targeted messaging. Analyze email campaign performance and make adjustments. Analytics and Reporting: Monitor website and content performance using analytics tools (e.g., Google Analytics). Track key metrics such as traffic, engagement, and conversions. Generate reports to assess the effectiveness of content efforts. Content Optimization: A/B test headlines, images, and calls to action to improve content performance. Update and refresh evergreen content to keep it relevant. Conduct content audits to identify areas for improvement. Content Collaboration: Coordinate with other team members, such as designers, SEO specialists, and social media managers. Attend meetings to discuss content strategy and progress. Research and Learning: Stay up-to-date with industry trends and best practices. Research competitors’ content strategies. Attend webinars, read industry blogs, and participate in relevant courses. Content Ideation and Brainstorming: Brainstorm new content ideas and formats. Collaborate with team members to generate fresh and innovative concepts. Content Management: Use content management systems (CMS) to upload, format, and publish content. Ensure content is organized and tagged correctly for easy retrieval. Attend the Moonshot Conference Calling all students Are you curious about how to enter tech, expand your professional network and push boundaries? Join us for a game-changing experience at Moonshot by TechCabal in Lagos from October 11 – 12. Get your tickets now Learn content marketing If you’re interested in trying your hand at content marketing, here are a list of resources. Content Marketing Foundations on LinkedIn Learning Price: Free Duration: 1 hour Tools Needed: Internet + phone Level: Beginner Get Course Content Marketing Certification Course by HubSpot Price: Free Duration: 6 hours Tools Needed: Internet + phone or laptop
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Exclusive: OPay denies opening accounts for customers without their consent
OPay has denied claims on social media that the fintech opened accounts for people without their consent. The fintech startup OPay has denied claims that it opened accounts for customers without their consent following an internal investigation into the matter, which began on Tuesday. The fintech began its inquiry after customers on social media said their phone numbers were linked to OPay accounts that they didn’t open. The Nigerian Consumer Protection Commission said it began investigating the matter this week. Nigeria’s Data Protection Commission told TechCabal that OPay has been served an investigation notice. “Some 24 hours ago, we got information that there were active accounts/wallets on our OPay app, which the owners alleged had been created without their knowledge and consent,” said Adekunle Adeyemi, the company’s Head of Marketing. “Based on our investigation, we discovered that these accounts were indeed opened by the owners at different points, but generally between 2019/2020.” The allegations around the accounts began on the social media platform X. “I just checked now, and I have an Opay account, same with every member of my family,” wrote one X user. “None of us has ever opened an Opay account. How’s this even legal?” The tweet went viral, and more people claimed that although they had never opened OPay accounts, they also found that their phone numbers were linked to existing OPay wallets. Five people told TechCabal that they also realised this week that they have OPay accounts. “At least four of the complaints received via social media have been checked, and all four of them have been contacted to resolve the concerns raised,” OPay said in its statement to TechCabal. “It is also important to note that OPay has never created nor does it operate any account on behalf of any individual.” One working theory is that customers may have opened these accounts in 2019 and 2020 to use OPay’s verticals at the time, such as ORide, OFood or OKash–OPay’s wallets powered all of those verticals and have since been shut down. But at least two users insist they never used any of OPay’s services. “We would like to encourage any individual with similar concerns to contact us via any of our official channels,” said OPay. Despite OPay’s denial, there are still questions “The core is whether users were comprehensively informed and aware that their phone numbers could be used to set up a bank account,” said Ridwan Oloyede, a data privacy expert. “Transparent communication is pivotal, and it is vital to scrutinise the initial communication and onboarding processes to know if users were adequately informed about such practices.” OPay insists that its wallets can only be opened through the CBN-established registration process, which requires the input of an OTP authentication from the user’s phone to proceed. Data protection laws in Nigeria mandate organisations to clearly articulate their lawful basis for processing user data. “We’ve served them notice of investigation already, and it will be good to know their position,” said a legal enforcement lead for NDPC. “We already have complaints backed by evidence so it’s for them [OPay] to disprove the evidence if they have credible evidence.” *This is a developing story Meet the OPay Mafia Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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After years of fighting the industry, SANTACO is entering ride-hailing
South Africa’s largest public transport association has entered the country’s ride-hailing market. It aims to challenge the dominance of Uber, Bolt, inDrive and others. After years of squabbling with the likes of Uber and Bolt, the South African Taxi Council (SANTACO) has reached a partnership agreement with three South African ride-hailing services. Through the agreement with Teksi Ride, Shuma and Yo!Taxi, members of SANTACO, who operate metered taxis and minibuses, will be able to offer ride-hailing services. Drivers on other platforms can sign up for the service after registering with SANTACO and drivers are also free to sign up for all the services concurrently. South Africa’s ride-hailing market is currently dominated by international players including Uber, Bold and inDrive. (Image source: Statista) A spokesperson for the association said they engaged the three platforms after conducting extensive due diligence to identify a partner for their ride-hailing play. Each platform has its established geographical strength, ensuring that SANTACO members everywhere can find rides. For example, Shuma’s stronghold is Durban while Yo!Taxi is mainly available in Johannesburg and Pretoria. “We identified that technology is part of every aspect of our lives and public transportation is no different, “ Sibongeseni Shange, SANTACO’s meter taxi deputy chairperson, told TechCabal. “With that in mind and the issue which currently plague ride-hailing in the country, we decided to enter that market.” inDrive in talks with regulators as Botswana taxi association calls for its ban One of the ride-hailing companies SANTACO has partnered with is Teksi Ride, founded in 2020 by Prince Pirikisi. SANTACO-registered drivers can sign up on Teksi Ride and find passengers. Teksi charges passengers R8.50 per kilometer and will take a 20% commission from drivers. Teksi will also also vet drivers and passengers to ensure safety. Given the amount of scrutiny Uber and Bolt have faced over lax safety measures, this is an important selling proposition. The company will also offer a panic button within vehicles as well as a 24-hour call center as safety incentives. “The safety measures that current players in the market have in place are so easy to bypass,” said Pirikisi “Additionally, these drivers are not answerable to any organisation which makes investigating criminal cases complex,” Pirikisi told TechCabal. SANTACO also cites the fact that drivers, passengers and law enforcement officials can easily reach out to the association in case of complaints and investigation as an important sell point of its ride-hailing service. Competing on innovation and convenience Per South African transport law, ride-hailing companies must at least have public transport operator licenses. The companies then lease these licences to drivers who use their platform–at least that’s how it should work in theory. In practice, most drivers on ride-hailing platforms don’t have these licences. SANTACO has argued for years that without these licences, drivers on ride-hailing platforms are operating illegally. There have been demonstrations that have sometimes turned violent, with protests earlier this year leading to the death of two Uber drivers in Johannesburg. SANTACO’s entry into ride-hailing will mean the association can focus on healthy competition. Shange claims that a significant number of drivers on other platforms have signed up on the SANTACO-backed ride-hailing platforms despite the fact that they’re still in the test phase. Another selling point from SANTACO is that by virtue of being members of the associations, despite being independent contractors, they would get membership amenities like car insurance and healthcare which incumbents do not offer. An interesting battle ahead Despite having been celebrated for their convenience and affordable pricing when they arrived in South Africa in the mid-2010s, international ride-hailing platforms have faced scrutiny in the country lately. They have been accused of operating illegally and driving metered taxis out of business; drivers have also argued that the commission they pay eats into most of their profits. South Africa’s Uber and Bolt Drivers go on a city-wide strike in Cape Town Yet SANTACO too is not without blemish. It has been accused of operating like a mafia by using its position as a representative of the country’s major public transport operators to bully competitors. As it enters the ride-hailing market and into direct competition with platforms it once wanted banned, it will be interesting to see how the ride-hailing competitive landscape evolves in South Africa. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Stears pivots into B2B market
Stears, a Nigerian data and intelligence company, is pivoting from its consumer-focused data solutions into an organisation-focused intelligence company with new offerings. Since its launch in 2017, Stears, a Nigerian data company, has evolved into an influential publication focused on data and information on Nigeria and its economy. With its analysis and unique offerings like a COVID-19 case monitoring platform and Nigeria’s first real-time election database, Stears represented a definitive source of information for Nigerians. But the company is now shifting its focus from consumers to organisations with its new B2B approach. According to Yvette Dimiri, the director at Stears, this change was driven by user feedback. “From the insights and data solutions being requested by our professional users, there seems to be a good fit there,” Dimiri said. “When we thought about, how do we produce these new insights and data solutions in a way that is good for the business? Of course, we’re still a business, it became very clear that we need to shift our model.” Backed by cumulative funding worth $4 million, the company will now offer organisations new intelligence solutions, including market sizing estimates, predictive forecasts, consumer indices, and comprehensive macroeconomic datasets. It hopes that with these new solutions, it will continue to attract global organisations operating or investing in the African continent. Stears says its customers include the United Nations Development Programme (UNDP), European Investment Bank, Infracredit, PZ Cussons, and Piggyvest. Funmi Ogunlesi, head of government affairs at Citibank Nigeria, said that Stears is her “secret weapon and go-to source of reliable data.” Nigerian media company, Stears raises $600,000 seed round funding Stears currently runs a subscription service for individuals and these subscriptions will continue to have access to Stears until their subscription expires. “We do believe that a number of our users who are professionals working in professional contexts and have always been champions of Stears will continue to champion the brand within those organisations,” Dimiri said. The company will also continue to publish articles, which have been the core of its intelligence solutions, and there will be no changes to the editorial team. Dimiri told TechCabal that this was possible because Stears had only hired analysts in the past two and a half years. Stears is backed by Luminate, a philanthropic organisation, that aims to fight misinformation in Africa. When asked if the company’s investors were on board with the pivot from providing individuals with information, Dimiri told TechCabal its investors were aligned with the pivot because Stears will continue to provide some free data solutions like the election database to the public. Stears will also continue to expand its presence on the continent with a primary focus on East and West Africa, according to Dimiri. She also told TechCabal that the pivot was not influenced by the company’s subscription model which she said the company was “really happy” with. Nigerian data and intelligence company Stears raises $3.3 million to solve Africa’s data dearth Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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👨🏿🚀TechCabal Daily – Was South Africa hacked…again?
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Before Africa’s most audacious thinkers and builders share insights and celebrate innovation on the continent at the Moonshot Conference on October 11–12, we’re holding an ice-breaker—a Moonshot Welcome Mixer. To kickstart the Moonshot Conference 2023, TechCabal will bring together 200 founders, business leaders, executives, decision-makers, and government policymakers in Africa’s dynamic tech scene to mingle and network for the Moonshot Welcome Mixer on Tuesday, October 10, 2023. If you’d like to network and hang out with big tech leaders in Africa, register for the mixer here. In today’s edition Was South Africa’s security agency hacked? Kenya goes hard on crypto Kenya to launch nuclear plants by 2034 Meta’s plans for ad-free platforms The World Wide Web3 Opportunities Cybersecurity South Africa’s SSA suspected of being hacked by MI6 and CIA Image source: MyBroadband South Africa may be keeping a significant security breach under wraps. A breach? Yes. Per a report from Sunday World, the South Africa State Security Agency (SSA) believes it was the target of a coordinated cyber attack by foreign intelligence agencies such as the CIA and MI6 in August this year, a week before the BRICS Summit. As a result of the breach, a high-ranking official, Joe Mbhambhu, was reportedly forced to resign, despite not being directly responsible for the agency’s cyber unit. SSA director general Thembi Majola reportedly blamed him for the hacking. Additionally, internal sources suggest that the breach may have had inside assistance, potentially implicating individuals within the agency. The incident is reportedly considered a matter of “treason and espionage” by some officials. Impact on national security: The hackers allegedly gained access to internal email messages and a strategic management group on the communication platform, Telegram. While sources in the report suspect the CIA and MI6, no entity or group has claimed responsibility for the hacking. One source reportedly stated that the incident was concealed because it was embarrassing. Joe Mbhambhu declined to comment on the matter, while Thembi Majola stated that she was unaware of any hacking incident within the agency. Sources, including senior officials at the Agency, however insist that the hack happened. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. Regulation Kenya to develop stricter measures for crypto Image source: TechCabal Kenya is developing a “comprehensive oversight framework and policies on virtual assets and virtual assets service providers” in the country. A parliamentary committee has advised the country to develop a framework for virtual assets in the country. The development comes after the country suspended operations of Sam Altman’s crypto firm—Worldcoin. ICYMI: Earlier this year, Worldcoin scanned the irises of Kenyan residents in exchange for 25 World tokens ($41). However, this exchange of biometric data raised privacy concerns in the country. Experts believed that sensitive data collected from the scanned iris might land in the wrong hands. This led to a shutdown of Worldcoin’s operation in the country and an eventual raid on the company’s warehouse where data collection equipment was seized. Worldcoin’s episode has increased the Kenya government’s scrutiny of crypto asset providers in the country. Per Techcrunch, the parliamentary committee called on the country’s ICT regulator to disable Worldcoin’s presence in the country, including its physical locations and “blacklisting the IP addresses of related websites.” Zoom out: Kenya’s steep regulations on crypto assets providers come as no surprise as Cryptocurrencies are yet to be regulated in the country. The Central Bank of Kenya (CBK) warned against the use of virtual tokens in 2015, citing that they are highly volatile. Energy Kenya to launch nuclear plants by 2034 An image of South Africas nuclear power plant. Image source: The South African Kenya is gun-blazing with nuclear ambitions. The East African country is gearing up plans to launch its own nuclear plants by 2034. According to the acting CEO of the Nuclear Power and Energy Agency (NuPEA) Justus Wabuyabo, the country will start the construction of its first nuclear power plant in 2027, and will commission it in a 6-10 years window—2034. The plant will have a capacity of 1,000 megawatts (MW). Kenya’s plan to launch a nuclear plant is part of the country’s effort to diversify its energy generation. The plant will help boost Kenya’s power supply and reduce the reliance on thermal plants. According to Wabuyabo, the nuclear plans will be situated at either Kilifi or Kwale counties. Kenya’s goal to build a nuclear power plant stems from the anticipated rise in electricity demand as it aims to be a middle-income country by 2030. However, for Kenya to achieve its nuclear ambitions, it will need to upgrade its electricity transmission network to power the nuclear power plants. Zoom out: South Africa is currently the only country on the continent with a commercial nuclear plant which accounts for 7% of its energy generation. Kenya will join the league when it commissions its own plant in 2034. With its latest development, the East African country is catching up with the rest of the world in the wave of alternative energy sources and the fulfillment of zero carbon goals. Accept payments fast with the Paystack Virtual Terminal Paystack Virtual Terminal helps businesses accept blazing fast in-person payments at scale, with ZERO hardware costs. Enjoy instant transfer confirmations via WhatsApp, multiple in-person payment channels, and more. Learn more. Global News Meta to charge $10 per month for ad-free plan in Europe Image source: Zikoko Memes Meta is trying to adapt to evolving regulatory requirements in the European Union (EU). The parent company of Facebook may roll out an ad-free plan in the coming months, dubbed “subscription no ads” (SNA) for its social media giants, Facebook and Instagram in the EU. The plan would give EU users the choice between paying approximately €10 ($10) per month for ad-free
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Starlink is offering users in Nigeria a 20% discount as it looks to expand reach
Starlink now costs 20% less for Nigerians as the company partners with Jumia to expand its reach. How far will a discount go in helping them acquire more users. Starlink, the satellite internet service owned by Elon Musk’s Space X, is slashing its price in Nigeria and expanding its distribution channels to acquire more users. The company is offering a 20% discount on its kit from ₦378,000 ($378) to ₦299,000 ($299). It has also partnered with Jumia, Nigeria’s most popular e-commerce platform. Per Wall Street Journal, while Starlink set sales targets of $12 billion in 2022, it only brought in $1.4 billion. Starlink, which expanded into Africa in 2023 with big plans to provide fast-speed internet to remote locations has faced more roadblocks than expected. The service which has a 100Mbps download speed is about ten times higher than the average download speed for mobile internet in sub-Saharan Africa where broadband penetration is still low, making it a great solution for the African market. Despite its potential for the continent, Starlink’s adoption across Africa has been faced with a number of challenges like affordability and regulatory concerns. In its first stop, Nigeria, the company has failed to capture a significant part of the market owing to its affordability problem with the kit costing significantly more than the average Nigerian can afford. About 70% of Nigerians suffer from poor internet speed, with the average quality of internet speed falling to 10.9% in 2023. However, the cost of Starlink rules it out as a solution for the majority of the population, even with a 20% discount, as the monthly salary of the average Nigerian is still below ₦124,000 ($124). Affordability isn’t its only barrier to its adoption as Starlink has also struggled with more regulatory roadblocks than expected in Africa. While it is not yet officially present in countries like South Africa as the government has banned the import, sale and usage of the service, thousands of South Africans have found ways to bypass regulatory hurdles and still access it. Similarly, Zimbabwe and Botswana have warned against the service, stating that the service is yet to complete the requisite licensing despite planning to launch in the country in Q3 2023. In August, the Senegalese government arrested five people for selling Starlink terminals without the required licence or authorisation. Some African countries like Rwanda on the other hand, have deployed the service to facilitate learning. In July, the country’s ICT Minister, Paula Ingabire, announced the launch of Starlink in 50 schools to provide students with access to more learning opportunities on the internet. This number is expected to increase to 500 by the end of 2024. The company has announced a partnership with e-commerce giant Jumia for the sales and distribution deal of the kits in Africa. Jumia is a strategic partner for Starlink as it is one of the most popular e-commerce platforms in the country with over 3.1 million active quarterly users. Jumia will exclusively distribute Starlink in Africa and its Chief Commercial Officer(CCO), Hisham El Gabry, believes that they have the needed experience in navigating the African retail and merchandise landscape. “The plan is to start selling through our sites and agents in Nigeria this month, and then Kenya,” he shared with Bloomberg. At the moment, the only countries in Africa where it is licensed to operate are Nigeria, Mauritius, Mozambique, Sierra Leone, Rwanda, and Kenya. It is set to be rolled out in more countries before the end of the year. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Stitch announces $25 million Series A extension to expand enterprise payments product
Stitch has announced a $25 million raise to scale its enterprise payment solutions product. South African payments solutions provider Stitch has announced a $25 million Series A extension round. Ribbit Capital led the funding round with involvement from both new and previous investors, including PayPal Ventures, The Raba Partnership, CRE Venture Capital, and 9 Yards Capital. Stitch launched in February 2021 and has since raised $52 million. The startup enables enterprises to accept, manage and disburse funds through its suite of products. “We’ve seen substantial growth since we emerged from stealth just over two years ago, and we look forward to finding more ways to anticipate and address the needs of the large, global enterprises we serve as the payments landscape continues to evolve,” said Kiaan Pillay, Stitch CEO. According to Pillay, Stitch is on track to process $2 billion in total payment value (TPV) this year and 50 million in payment volume. Stitch started life as one of the firms that bet that Open Banking would unlock better and more personalised banking services. A previous TechCabal article described Stitch as a startup that “offers data and payments solutions that reduce the effort required for businesses to connect to their users’ financial accounts and enable bank-to-bank payments without leaving the existing app interface.” The bet at the time was that this would enable fintech use cases like KYC and onboarding, personal and business financial management, lending, wallet top-ups, and e-commerce checkouts. That bet did not pan out as expected. “There was not a huge amount of traction. I think other markets, especially Western markets have good use over there. But I think it [was] just a bit too early in some of the markets we were targeting,” Pillay conceded. “We started off serving [customers] across this method called pay-by-bank. But in doing so we ended up having almost three distinct areas that we started to work with clients on [and] realised more areas we could offer solutions on,” he added. As the firm explored new product lines it hit a sweet spot with providing full payment solutions for enterprise-sized businesses in South Africa. So instead of trying to be everything to everyone, the fintech pared back its focus. “At the beginning of this year, we reined in our focus. And we sort of went from being a single method and being paid by the bank to being a full-on enterprise PSP (payment service provider). [The result was that] we ended up serving a lot of enterprises.” Stitch hopes to restart plans to expand across Africa. The South African company has maintained a small Nigerian operation but held back on aggressively selling in the West African nation in favour of doubling down in South Africa. A renewed expansion push will see it test the waters with enterprises in Kenya, Ghana, Egypt and Nigeria. Stitch also plans to offer its suite of end-to-end payment solutions to US and UK-domiciled companies. The startup also recently launched WigWag, a separate subsidiary specifically serving SMEs. According to the company, unlike rival payment service providers, Stitch’s go-to-market is built on working closely with enterprise customers to help them fully leverage its API suite to build out payment workflows. “We only focus on a few enterprises,” said Pillay. PayOS, its flagship product enables enterprise customers to accept payments via pay by bank, debit and credit card, recurring debits, cash and manual bank transfer. One such customer is dLocal, the Uruguayan cross-border payment processor that connects global merchants to emerging markets. MTN, the South African telco giant which has recently been boosting its fintech appeal after a deal with Mastercard valued its fintech business at more than $5 billion is also a customer of Stitch. “We really go deep with them on the kind of payment solutions we can offer them and obviously along the way, we find that some of the solutions are applicable to other businesses too.” Stitch has always gone where its clients’ needs have taken it. But it still had to deal with growing competition. “We still want to continue to go deep with all of our existing clients, I think we’ve barely scratched the surface in ways that we can work with them. We’re really excited that we do significant amounts of volume and scale to the existing customers, but it really is only a sliver of their total volume.” Pillay concluded. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Exclusive: Paystack expands further into offline payments as Nigeria’s POS volume surges
Paystack, the Nigeria-based fintech company, is launching virtual terminals, a new product that allows merchants to accept payments with bank transfers for multi-person businesses. The company is positioning itself for faster growth of its “pay with bank transfer” feature, which is witnessing rapid adoption as everyday customers use it as their primary mode of payment during checkout at offline businesses, such as supermarkets or restaurants. Paystack’s virtual terminal is a digital-only alternative to physical point-of-sale (POS) devices that have seen wide adoption in the country over the last few years. These physical POS devices are limited in circulation and cause transaction delays in high-volume situations such as restaurant checkout, where several customers might require payment confirmation simultaneously. Similar delays have plagued direct bank transfer alternatives as sales representatives at various businesses require verbal confirmation from their managers that a payment was successful — an inefficient process in a high turnover environment. Paystack, which operates in four African countries, believes its new virtual terminals can cut the wait time for payment confirmation and ensure a seamless customer checkout experience. The feature supports QR code payments, foreign bank cards and Apple Pay. Business owners can also assign virtual accounts to sales agents who can monitor and verify transactions without contacting their manager or having access to the business’ bank accounts. “Bank transfers are fast becoming the go-to payment method for a growing number of consumers in Nigeria,” says Shola Akinlade, Paystack CEO. “With Virtual Terminal, we’re making it effortless for businesses to accept in-person bank transfers quickly, while providing a dignified customer experience.” Virtual terminal is part of Paystack’s broader strategy to expand beyond web-only payment collection. The company launched in 2015 with a modern payments gateway that was cheaper and faster than existing business solutions developed by market leader Interswitch. Since then, the Nigerian payments market has flourished, with dozens of fintech providing digital fund collection and settlement services. By the end of 2022, electronic payments in Nigeria topped 5.1 billion transactions worth ₦387.1 trillion, a jump from the 154 million transactions valued at ₦38.2 trillion recorded in 2016, a year after Paystack launched. Paystack has also tried to capture a larger market share. Since 2020, it has developed a few products, including a digital storefront for social commerce, to win over more small businesses looking to sell online. But over the last three years, offline payments — a catch-all term loosely referring to agency banking and POS-based payments — have become a key segment driving the growth of electronic payments in Nigeria, Paystack’s primary market. Newer fintechs, such as GTCO’s Squad, OPay, PalmPay and Moniepoint, have cornered the offline market using a network of in-person payment agents and POS devices to offer cash transaction services to individual customers and business owners nationwide. In 2022, POS transactions represented around a fifth of electronic payments volume in Nigeria although industry insiders believe the figure is higher since several companies do not share their transaction data with NIBSS, which operates the national real-time payments infrastructure. Paystack, which is owned by U.S. fintech Stripe, made its re-entry into the offline payments market late last year with the launch of the Paystack Terminal, a point-of-sale device. Now, the fintech is doubling down on this market with virtual terminals and bank transfers. The company first introduced the bank transfer payment method in 2017, which supported seven financial institutions. In 2021, bank transfers represented around 12% of transactions on Paystack, the company told TechCabal. A year later, this figure has more than doubled to 28%. And since the start of 2023, the bank transfer method is surging, accounting for 34% of Paystack payments in Nigeria. The company has since doubled down on this market with new infrastructure and the new Paystack-Titan virtual accounts, a partnership between Paystack and Nigerian financial service Titan Trust Bank which cut the latency of bank transfers to less than 8 seconds. Customers are increasingly adopting the bank transfer method because of its convenience and control, Mohini Ufeli, a Paystack spokesperson, told TechCabal. In a low-trust environment where buyers and sellers want payment confirmation before completing a sale, both parties can conveniently track the status of a transaction. And unlike POS devices where sales agents pace several customers to collect payments, virtual terminals designate a Paystack-Titan bank account to which shoppers can conveniently send funds. The product is launching following a challenging start to the year for the Nigerian payments industry after an ill-timed central bank currency redesign effort triggered the scarcity of the physical naira ahead of general elections. The cash scarcity exposed several weaknesses in existing offline payment solutions which unraveled as the economy declined in the first quarter of 2023. Although Paystack declined to comment on its overall offline payments strategy, the fintech believes its faster bank transfer channel could help it win over more in-person businesses in Nigeria with instant payments confirmation.
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