As Starlink faces hurdles, Amazon launches competitor in Africa
Vodafone and Amazon are working on Project Kuiper satellite internet service, a competitor to Starlink in Africa. Vodafone and Project Kuiper, Amazon’s Low Earth Orbit satellite (LEO) communications initiative, today, September 5, 2023, announced a collaboration to use Project Kuiper’s network to extend the reach of 4G/5G services to more of their customers in Europe and Africa. Project Kuiper claims to connect geographically dispersed cellular antennas back to the companies’ core telecom networks. This means Vodafone and Vodacom will be able offer 4G/5G services in more locations without the time and expense of building out fibre-based or fixed wireless links back to the core networks. Shameel Joosup, CEO of Vodacom Group said “collaborating with Project Kuiper gives us an exciting new path to scale our efforts, using Amazon’s satellite constellation to quickly reach more customers across the African continent.” The Vodacom group plans to use Project Kuiper’s high-bandwidth, low-latency satellite network to bring the benefits of 4G/5G connectivity to areas that may otherwise be challenging and prohibitively expensive to serve via traditional fibre or microwave solutions. Amazon expects to begin beta testing Project Kuiper services with select customers by the end of 2024, and Vodafone and Vodacom plan to participate in that testing through this collaboration. The partnership comes at an interesting time when Starlink, a competitor to Project Kuiper, has been experiencing regulatory pushback, particularly in southern Africa. South Africa has banned the import, reselling and usage of the service, Zimbabwe has warned against the service, citing licensing while Botswana states that the service is yet to get the requisite licensing despite planning to launch in the country in Q3 2023. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
Andrew Barden and Zekarias Amsalu: A conversation with the minds behind the Africa Fintech Summit
Noel K. Tshiani is the founder of Congo Business Network, which has partnered with the Africa Fintech Summit (AFTS) since April 2019 to mobilise startups and government officials from the Democratic Republic of Congo to participate in various editions of the summit held in Washington, Addis Ababa, Cairo, and Cape Town. He discusses the evolution of the summit from its inception to the upcoming November edition in Lusaka, Zambia, with Andrew Barden, lead organiser, and Zekarias Amsalu, co-founder of the event. Since its inception in 2017, the Africa Fintech Summit (AFTS) has grown into a key fintech event, not just in Africa, but globally. Can you share with me the initial vision behind the AFTS, and how it has evolved over the past editions, leading to the upcoming 10th edition in Lusaka, Zambia? Andrew Barden: The original vision, which remains our vision today, is that Africa is uniquely positioned to be a global leader in the financial technology industry, that much work remains to be done, and that fintech can transform people’s lives and economies through the power of meaningful financial inclusion and enhanced sustainable development. We take great care in organising each summit because we are uniquely positioned to be a catalyst for enabling investment, building balanced regulation, and facilitating collaboration across sectors and geographies. Over the years, AFTS has become the top stage for industry stakeholders to explore, debate, and connect around this shared vision for African fintech. The AFTS has supported millions in capital raise efforts and has been instrumental in shaping policy guidelines and startup ecosystems. From your perspective, what are some of the most transformational impacts the summit has had, especially concerning the African fintech landscape? AB: That is a spectacular question. Personally, I have always been fascinated by the entrepreneurial process. One of the programmes we have run since day one is our AlphaExpo Micro-Accelerator. This non-equity programme has enabled many startups across the continent to not only raise their public profile, but also to connect with potential investors and like-minded individuals. Some people have told me, “Africa has too many fintechs.” I do not agree with that thinking. I believe that as a pan-African ecosystem, we need to do everything we can to remove the barriers to entry that prevent entrepreneurs from taking the step from idea to execution. The summit is known for its cross-sectoral collaborations involving investors, entrepreneurs, and regulators. How do you manage to bring such diverse stakeholders under one roof, and what has been the secret sauce in fostering successful partnerships and new business ventures? AB: The short answer is a lot of phone calls, emails, and letters. Getting the right decision makers in the room is the result of years of building relationships across industries and geographies. At AFTS, we pride ourselves on not being a “pay-to-play” event; it is important to us that this diverse and dynamic industry is well represented at each edition. The secret sauce for us is our thought-leadership-first approach and our focus on keeping the majority of our audience at the C-suite and director level. These two things work together to allow for the organic discovery and conversation necessary for efficient dealmaking and relationship building. Given the variety of participants at the summit, from seasoned investors to budding fintech entrepreneurs, how do you ensure that there is a shared vision and synergy among attendees? What strategies have proven effective in aligning the interests of these diverse groups towards common goals? AB: Of course, everyone will have their own opinions and insights, but when it comes to the macro vision of Africa’s fintech industry as a means to drive meaningful financial inclusion and sustainable economic development, I have not met many people in our industry who disagree with that vision. However, when it comes to the specifics of how that vision can be realised, that is where people start to disagree. One of the benefits of being a sector-specific event is that AFTS attracts an audience that is already heavily focused on the fintech sector. With a wide net of different stakeholders attending AFTS, it is special to listen to many of the conversations on and off stage, because, while people may share a macro vision for African fintech, the different perspectives often help open people’s eyes to much more than their “focus area”. For me, it is less about aligning everyone’s vision and more about facilitating a conversation about a vision that is both geographically diverse and inclusive of different stakeholders. Last year, in collaboration with Congo Business Network, AFTS organised a panel in French at the 8th edition in Cape Town, South Africa. This year, you have renewed this partnership for the panel titled: “Fintechs and the future of financial inclusion in francophone Africa”. Why is it essential to emphasise the French-speaking region in Africa, and what unique opportunities and challenges does francophone Africa present in the fintech business? AB: There has been a divide that has cut off much of francophone Africa from participating in the conversations around financial technology in Africa. For me, it is important that we emphasise that Africa is not a monolith but rather a mosaic of cultures, languages, and more. I would say that not only is it important to highlight the francophone part of the continent, but it is also paramount that we facilitate the pan-African community to come together in a meaningful way. If you have ever been to an African Union meeting, there are many languages being spoken and translated at the same time. I see no reason why the private sector cannot do the same. As we look towards the 10th edition of the AFTS in Lusaka, Zambia, what should attendees expect in terms of content, innovation showcases, and opportunities? Further, as a co-founder, can you share some insights on the future trajectory of AFTS, especially in light of the rapid developments in African fintech? Zekarias Amsalu: We have a lot planned for the Lusaka edition and have been working closely
Read MoreExclusive: Leatherback denies losing funds to little-known SDQ Facilitators
Leatherback, a cross-border payments startup, is the subject of ongoing speculation within high-level online communities of the Nigerian tech ecosystem. The UK-based company, which raised $10 million pre-seed, is backed by ZedCrest Capital and provides cross-border payment services to customers in South Africa, Egypt, Uganda, India, the UAE, and Nigeria. An unsubstantiated report making the rounds on closed WhatsApp and Telegram communities claims that Leatherback lost a significant sum to an entity known as SDQ Facilitators–TechCabal will not describe the rumours in detail as they remain unsubstantiated. The initial source of the rumour also remains unclear. Leatherback told TechCabal it is aware of the rumours and denied all the claims. In an exclusive interview with TechCabal, Leatherback’s CEO Toheeb Ibrahim also denied other rumours that transactions with SDQ Facilitators had exposed the fintech to an ongoing investigation that has left its bank accounts frozen worldwide. “[It’s] terrible and laughable,” he said. “Our accounts are fully functional, and you can log in right now, create an account and complete a transaction.” Although Ibrahim denied any wrongdoing, losses or association with SDQ Facilitators, he said Leatherback has provided information on the former to the Nigerian Police Force and the Economic and Financial Crimes Commission (EFCC). While TechCabal could not independently verify the investigation details from the EFCC and the police, Ibrahim said, “We don’t know who they [SDQ Financials] are; we’ve not engaged them before, and we don’t have any links with them. If the authorities call at Leatherback, we’re inclined to respond; the extent of our investigation is to the extent the police have asked, ‘What do you know about these people?’ and we have provided those details to them. “Hopefully, they can find whoever is involved, but none of Leatherback’s funds are affected in this situation,” Ibrahim added. The company also pointed out that it is subject to regulation by the UK’s Financial Conduct Authority (FCA) and that all client’s funds are safe. TechCabal investigations turned up little information about SDQ Facilitators. The entity is incorporated in Nigeria, and details on the website of the Corporate Affairs Commission show one individual–Lawal Mohammed Kazeem–with significant control at the company. SDQ did not respond to TechCabal’s request for comments. Industry insiders told TechCabal SDQ is a Nigerian currency trading company that buys and sells the US dollar at a lower exchange rate than the prevalent parallel market value. Last week, TechCabal reported that Float, a fintech company originally founded to help startups with cashflow management, dabbled into currency trading instead. In a series of transactions that eventually went wrong, the startup lost money and could not pay at least $6 million in client deposits. It shows the precarious nature of attempting to profit from Nigeria’s arbitrage situation. With the greenback only readily available on the black market, some companies are tempted by promises of cheaper access to FX, but the results can be disastrous. A trader familiar with the situation but asked not to be identified so they could speak freely told TechCabal that the payoff for companies in currency trading was too much to be ignored. “A company I’m familiar with made N1.4 billion trading currencies in only one month,” they told TechCabal. Leatherback said it is familiar with people’s attempts to get cheaper foreign exchange through third parties; “We always encourage people to stop dealing with intermediaries when they need foreign exchange.” As to why it didn’t respond to the rumors, the company said, “Leatherback’s accounts are open, the platform is open. Instead of responding to these rumors, if they tell you Leatherback accounts are down, please log in and find out if it’s working. If you log in and it’s working, everything answers itself.”
Read MoreLagos Blue line will have to wait four weeks to be electrified
Lagos Blue rail line was inaugurated yesterday but its electrification process will take a month as the transport authority tests growing adoption On Monday, the Lagos state government launched its blue line, a 27km intra-city line connecting Okokomaiko to Marina and the first light-rail system in the city. Governor Babajide Sanwoolu was one of first passengers on Monday on a light rail system that has only been partially delivered after its conception in 2008. Yet the blue line will still have to wait four weeks to be electrified while it is still in testing phase, said the Lagos Metropolitan Area Transport Authority (LAMATA). Presently, the train is pulled across its electric tracks with a diesel locomotive. LAMATA told TechCabal that the situation is temporary. “What I don’t want us to be saying is that it is not electrified because people may want to run across the tracks,” Abimbola Akinajo, LAMATA’s Managing Director said. “The tracks are currently electrified.” While the blue line waits, to be electrified, the 37km red line, which is expected to be operational by the end of the year, will run on diesel. The red line stretches from Agbado to Ebute Meta and connects with the blue line at Marina. While the blue line will eventually have eleven stations, only five stations from Mile 2 to Marina, have been launched as phase one of the plan. Akinajo said the second phase of the blue line comprising six stations from Okokomaiko to Festac would be completed in three and a half years. “What we really want to do is add two more stations. We would include Alakija, Festac and bring that into operations in 18 months.” The Blue line is not open on both sides but currently operates like a monorail from Mile 2 to Marina. According to LAMATA, the both sides of the railway will work jointly once it is switched onto electric. Passengers worry about the price point Three passengers told TechCabal that they love the experience; the average travel time from Mile 2 to Marina is 20 minutes with a last mile provision at Marina to take you into Falomo, TBS and Victoria Island. However the price point is still a concern. While a ticket from Marina to Mile 2 is N750, the state government is providing a 50% discount until the end of the year. Akinajo said the system must generate enough to sustain itself. “Let’s start with what we have,” Akinajo told TechCabal. “Transportation is important. When we are able to move, the economy of Lagos grows.” In its unelectrified state, it carries a thousand passengers. The train is expected to carry 175,000 passengers daily with five stations in operation and will 500,000 passengers when the blue line is fully complete.
Read More
Latest update for my NSFAS application status 2023
The NSFAS funding application for the 2023 edition has officially closed for the year. Therefore, any willing applicant who didn’t apply for the 2023 NSFAS funding will have to look out for the 2024 opening of the NSFAS applications. Meanwhile, those who have applied are advised to keep tracking their My NSFAS application status. Pending the next application season, there are things you may want to prepare towards. To apply for the National Student Financial Aid Scheme (NSFAS) in South Africa, there are five crucial things you need to keep in mind: 1. My NSFAS eligibility status Before you start your NSFAS application, ensure you evaluate your eligibility status. Generally, you must be a South African citizen, a permanent resident, or a refugee. You also need to be enrolled or intend to enroll at a public university or TVET college. Meeting these criteria is essential to proceed with the application. 2. Required documentation for My NSFAS status Gathering the necessary documents is vital to the success status of your NSFAS application. These typically include your certified copy of your ID or birth certificate, your parent/guardian’s ID, proof of their income (payslips or affidavits), and your own proof of income if applicable. Academic transcripts or acceptance letters from your institution are also needed. 3. Online application NSFAS primarily uses an online system throughout the majority of your application status updates. You must have access to the internet and a valid email address. Visit the NSFAS website (www.nsfas.org.za) during the application period, create an account, and complete the application form. Ensure all your details are accurate to avoid processing delays. 4. Deadlines NSFAS has specific application windows, so it’s crucial to know the opening and closing dates for applications. Missing these deadlines can result in your application being rejected. Typically, application periods open in August and close around November for the following academic year. However, this is subject to the discretion of NSFAS. 5. Follow-up and communication After submitting your application, you should track your My NSFAS status. Therefore, regularly check your email and the NSFAS portal for updates. You may be required to provide additional information or attend interviews. Stay in touch with NSFAS and promptly respond to any requests to ensure your application progresses smoothly. Final thoughts on My NFAS application status updates Applying for the My NSFAS 2024 requires careful attention to eligibility status, thorough documentation, online application submission within the specified timeframe, and active communication with the organisation. By following these five key steps, you increase your chances of securing financial assistance to pursue your higher education goals in South Africa.
Read More
SRD SASSA latest 2023 news; Bank details and more
As you may already know, the SASSA SRD application deadline has been moved to 2024. You can read up on the month and more here. Alongside this, there is important information regarding appeals, grant application updates, and changing your bank details for the SASSA SRD R350 Grant. And this article will concisely highlight them for you. The SRD SASSA grant application updates If you applied for this grant this year and haven’t gotten it and your application status still reads ‘pending’, your application will automatically be considered each month until 2024. If your status is reading “rejected” or anything connoting a decline, you may need to appeal if you feel you were wrongly refused. Meanwhile, you can modify your responses to the screening questionnaire at any time if your circumstances change or if there are errors in your application. To do so, simply visit this link: https://srd.sassa.gov.za/sc19/reconfirmation and follow the instructions. Appealing the SRD SASSA decline or rejection If your application was rejected at any point in 2023, you have the option to file an appeal. You can learn how to initiate the appeal process by visiting the DSD appeals website or directly accessing the appeals portal if you’re already familiar with the process. Changing SASSA bank details For approved beneficiaries of the SASSA SRD R350 Grant looking to update their banking details, you can do so by visiting this link: https://srd.sassa.gov.za/said and navigating to the “How do I change my banking details” section. You’ll see a portal to enter your ID. After providing your ID Number, you will receive an SMS with a secure link unique to you. Click on this link and carefully follow the provided instructions. If you choose to receive your grant in a bank account, please ensure that the account belongs to you. SASSA cannot deposit your grant into someone else’s bank account. Similarly, if you opt for the money transfer option through a major bank, make sure that the mobile phone number receiving the SMS is registered in your name. SASSA cannot transfer your grant to a mobile number registered to someone else. It’s important to note that these updated banking details will be used for future payments after they are verified.
Read More
👨🏿🚀TechCabal Daily -mPharma lays off 150 staff
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning It is the end of an era. Microsoft is discontinuing WordPad after 28 years. If you are wondering what WorPad is, it is that app that you keep opening mistakenly when you are trying to open your Notepad or Microsoft Word on your desktop. In today’s edition mPharma lays off employees Binance’s global head of product resigns Anchor raises $2.4 million in seed funding Pick and Pay customers can pay in Bitcoin The World Wide Web3 Event: The Moonshot Conference Job opportunities Layoff mPharma lays off 150 employees Image source: TechCabal mPharma is parting ways with some of its workforce. mPharma, the Ghanaian startup that manages prescription drug inventory for pharmacies and their suppliers, has laid off 150 employees. According to the company’s CEO, Gregory Rockson, the layoffs are in light of the current macroeconomic conditions driven by the naira devaluation. ICYMI: This news comes after the company raised a $35 million Series D last year. In September 2022, the startup bought a majority stake in HealthPlus, a leading pharmacy chain in Nigeria, for an undisclosed amount. A year before, it also bought a 55% stake in Uganda’s Vine Pharmacy— the second country in East Africa after buying Halton’s Pharmacy in Kenya for $5 million in 2019. The road ahead: The startup operates in nine African countries: Ghana, Nigeria, Kenya, Zambia, Malawi, Rwanda, Uganda, Gabon, and Ethiopia. Now with a lighter workforce, the company says that the company will focus on its online pharmacy product, Mutti. 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. Crypto Binance global head of product resigns Image source: Zikoko Memes The world’s largest crypto exchange, Binance, is facing another setback Yesterday, the global head of product and design at Binance, Mayur Kamat, resigned from his position. Why? According to Kamat, he is leaving Binance due to personal reasons and to “transition product leadership to Binance’s next-gen leaders”. Kamat’s decision to step down adds to a growing list of senior executives who have left Binance. The company also laid off over 1,000 employees in July. Regulatory woes: These departures come at a time when Binance is navigating intense regulatory scrutiny in the United States. In one lawsuit, the SEC alleges that Binance provided false information to its customers and redirected funds towards independent investment portfolios owned by Zhao. If the regulatory agency’s lawsuit proves successful, both Zhao and Binance might face prohibitions on conducting business within the US. Power your startup growth Join burgeoning entrepreneurs & innovators in Ghana, Nigeria, Senegal, South Africa, & Kenya to pitch your startup and unlock funding, mentorship, & growth opportunities at the 2023 MEST Africa Challenge. Apply today! . Funding Anchor raises $2.4 million Image source: Zikoko Memes Anchor, a Nigerian fintech company that provides banking-as-a-service (BaaS) solutions, has secured $2.4 million in seed funding. The Y Combinator (YC) backed company, which became publicly known just a year ago after raising over $1 million in pre-seed funding, has now secured $2.4 million in seed funding. The round was led by Goat Capital, with participation from FoundersX, Rebel Fund, and existing investors such as Y Combinator and Byld Ventures. About Anchor: The company provides developers with a suite of tools, APIs, and dashboards to facilitate the integration and creation of banking solutions. How will it use the funding? Anchor says it has now hit over $550 million in annualised total transaction volume, with revenue growing 30% month-on-month. It plans to use the raise to bring in more customers and improve its compliance. Unlock new opportunities for your business Unlock new opportunities for your business with Vesicash! Seamlessly expand into emerging markets using our secure, all-in-one and cost-effective payment infrastructure. Contact Vesicash via our website www.vesicash.com or reach out to our dedicated team at info@vesicash.com Crypto Pick and Pay gets more Bitcoin payment channels Image source: TechCabal South Africans now have more options to pick and pay with crypto. VALR and Luno have partnered with CryptoConvert to support Bitcoin payments from their apps at all Pick n Pay stores around South Africa. Last year, Pick n Pay, the South African retailer, announced its successful pilot phase would allow customers to pay for purchases using cryptocurrencies on their smartphones. This new development comes after CryptoConvert announced in February that its CryptoQR platform was active in all of Pick n Pay’s over 1,500 stores in South Africa. Shoppers can also buy airtime, electricity, flight and bus tickets, and pay municipal bills with bitcoin at the till. The full rollout of CryptoQR across Pick n Pay’s national footprint came after a successful trial at stores in major cities. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $27,259 + 0.10% – 11.18% Ether $1,634 – 0.01% – 10.53% BNB $214 + 0.27% – 11.13% Cardano $0.257 + 0.52% -12.36% * Data as of 02:17 AM WAT, September 5, 2023. Events The Moonshot Conference Early bird tickets are still selling out fast for Moonshot by TechCabal! If you’re an international fan eager to be part of this incredible event, the time has come for you to secure your seat and get an exclusive discount. Be part of the gathering of the most audacious players in Africa’s tech ecosystem and get your early birds ticket now. Get your ticket today. Job Openings FairMoney – Product Manager – Abuja, Nigeria(Remote) Smollan – IT Officer – Lagos Nigeria (On-site) Zeps – Backend Engineer (Java) – Nairobi, Kenya Kyosk – Country Product Manager – Nigeria( On-site) What else we are reading John Malone’s charter squeezes Disney at vulnerable moment Free AI tools are killing South Africa’s web designer job market Written by – Mariam Muhammad & Faith Omoniyi Edited by – Noah Banjo
Read MoreWasoko launches cross-border operations into DRC
Wasoko, Africa’s largest B2B e-commerce startup, expands its African B2B e-commerce network into DRC, leveraging its Rwandan hub. Wasoko, an African e-commerce company that currently operates in Kenya, Tanzania, Rwanda, Uganda, and Zambia, has expanded into the Democratic Republic of Congo (DRC). This marks its second country expansion this year, following its debut in Zambia in May. The expansion is being facilitated through Wasoko’s existing e-commerce hub in neighbouring Rwanda. The e-commerce company has expanded its reach to small businesses in Goma, the capital of DRC’s North Kivu province, with the help of cross-border trade zones supported by the Rwandan government as part of its more comprehensive drive to foster regional economic integration. Growth in Rwanda Following its expansion into Rwanda in 2019, Wasoko witnessed an astounding increase in its revenues, surging from $2 million in its inaugural year of operation to $48 million in 2022. Presently, the platform caters to over 5,000 informal retailers exclusively in Rwanda. Given the impressive performance achieved in Rwanda, Wasoko is equally optimistic about leveraging its existing infrastructure to drive growth for small businesses in neighbouring DRC. “As one of Africa’s largest countries, the DRC presents a substantial market opportunity for Wasoko. Despite a rapidly growing population of nearly 100 million people with increasing purchasing power, the country’s significant infrastructural challenges have placed huge limitations on its e-commerce sector, which presents a vastly untapped opportunity,” Daniel Yu, Wasoko’s founder and Global CEO said regarding the expansion. Wasoko’s expansion into the DRC is the latest milestone for the company. In March 2022, Wasoko raised a $125 million Series B round, making it the largest venture financing round ever raised for a non-fintech startup in Africa. Philip Lucky, Acting Chief Investment Officer, Rwanda Development Board, enthusiastically praises Wasoko’s expansion into the DRC. According to him, “The Government of Rwanda is pleased with Wasoko’s expansion to the DRC. It joins Rwanda’s success stories of its proof-of-concept strategy, which allows investors to set up and test their solutions in Rwanda before scaling to the region. We remain committed to improving Rwanda’s ICT & Innovation eco-system in order to enable investors and startups to thrive.” After expanding to DRC, Wasoko plans to replicate its model in other African regions. This is part of its long-term goal to strengthen its Pan-African presence, empower local businesses, and connect African consumers with a wide range of products and services. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read MoreHow agritech startups are contributing to SA’s agriculture sector
Despite little VC capital, South Africa’s agritech sector is pushing ahead. TechCabal caught up with a few to get more info on their contributions to SA’s breadbasket sector. According to Wandile Sihlobo, an agriculture economist and author, technology has played a significant role in making South Africa’s agricultural sector the most advanced on the continent. “South Africa has been able to make great strides in biological and mechanical engineering technologies, which has seen the country’s agriculture sector’s output more than doubled since 1994,” Sihlobo told TechCabal. The importance of technology in the sector is reiterated by Amanda Chembezi, a member of the board of directors of the Center for Coordination of Agricultural Research and Development for Southern Africa (CARDESA). CARDESA seeks to coordinate and harmonise the implementation of agricultural research and development in the 16 member states, including South Africa. “When we talk about food security in Southern Africa, technology is at the forefront of enabling us to increase our food sufficiency and our production levels as well the effectiveness by which we produce food,” Chembezi told TechCabal. Despite the clear importance of technology to the agriculture sector, the sector is struggling to incorporate new technologies along its value chain. Numerous agritech startups in South Africa are building unique solutions to accelerate the adoption of such technologies to boost the sector. These solutions aim to address the challenges, both in the production and distribution parts of the value chain, facing the country’s breadbasket sector. Agritech startups boosting agriculture production One of those startups is Tsehla Holdings, a startup specialising in hydroponic farming. Hydroponic farming refers to growing plants using a water-based nutrient solution rather than soil. Tsehla claims to help farmers use about 90% less water than conventional farming methods, a sell factor statistic in a country where water is classified as a scarce resource. “Technologies like hydroponics help tackle adverse and unpredictable weather patterns which can lead to droughts. With such technologies, we can control our production, thus ensuring that whatever happens with the weather, at least the production of food continues to go on,” Roseline Mapuranga, founder of Tsehla, told TechCabal. Mapuranga shared that the main challenge she faced was access to funding, as hydroponics is cash-intensive. She secured an investment from the Africa Trust Group which she used to refine the company’s go-to-market strategy. After that, she landed a supplier contract with one of South Africa’s leading retail chain stores. Tsehla is also an alumnus of the Grindstone X program, one of the country’s leading accelerators. Another startup using newer technologies to boost production in South Africa’s agriculture sector is AgriLogiq. The startup, founded by Joel van der Schyff, enables farmers to optimise crop yield through a fully automated greenhouse management system. The system includes a cloud-based IP-intensive software platform to allow wireless and intelligent poly greenhouse automation. “One of our key products is a ventilation system that gets you to 70% of the efficiency of a traditional closed greenhouse at 50% of the capex cost and 20% reduction of running costs. That helps to bring water and chemical usage, leading to a massive impact on a farmer’s bottom line,” van der Schyff told TechCabal. Founded in 2021, van der Schyff shares that AgriLogiq has deployed its proprietary system in over 25 farms across the country, tripling its turnover within its first year of operations and is on track to do so again in the current financial year. The company also resells its system to other greenhouse manufacturers in the country. Van der Schyff states that education on deploying technologies in agriculture has been a pressing challenge. To address that, Agrilogiq is creating an open-sourced education space within its infrastructure to teach people about efficient farming. “I think there is certainly an opportunity [to use technology to drive efficiency] because farmers are also innovative in the sense of trying new things and trying to do more with less. But it does come down to finding those farmers and equipping them with the requisite education,” he concluded. Addressing the distribution bottlenecks Beyond produce, distribution is another area where there is room to improve efficiency in South Africa. Challenges like the country’s rolling blackouts, known as load shedding, have sometimes led farmers across the country to fail to get their produce to the market. For consumers, the cost of these distribution bottlenecks is passed onto the shelf prices, making food more expensive. One startup trying to address some of these distribution problems is AgriKool, founded by Zamokhuhle Thwala. The startup claims to “solve the challenges of food affordability” by building an ecosystem that reconnects farmers and buyers so that both parties get fair prices and a reliable marketplace. AgriKool’s product offering is a two-sided online marketplace where producers list their available produce even before harvest. Buyers use the platform to look for produce they would like to buy. Once the two entities settle on an order, AgriKool engages a third-party logistics supplier to complete the delivery. The startup also facilitates payments to farmers from buyers to reduce the time it usually takes for invoices to be settled on the buyer side. According to Thwala, the issue of high food prices in South Africa is more of a logistics than a production problem so reducing friction and fragmentation between producers and sellers, contributes to the reduction of shelf prices of agricultural products. “We realised that the best way to make food affordable is to make sure that there’s streamlined logistics so that fresh produce travels the shortest route to market,” Thwala told TechCabal. AgriKool’s reports revenues “close to three million rands” from operations based only in Pietermaritzburg in the Kwazulu-Natal province. A few months ago, the startup also announced a distribution deal with Shoprite, South Africa’s largest retailer. According to Thwala, despite the traction, fundraising has been challenging because don’t see the fact that the business is geographically located in one province as compelling enough to write cheques for it. “[At the moment], it doesn’t make sense for us
Read More“You can invest in Africa” and other common mistakes in how the world sees our continent
Africa, with some of the world’s fastest-growing economies and a rapidly expanding population, has the potential to become a global leader in telecommunications. But enabling this requires overcoming certain shortfalls. First, there is a need to shift fundamental misconceptions about the continent. The belief that Africa is a unified market must be corrected. It is not. The sheer size of the continent is massive, with the ability to accommodate China, Europe, the continental United States, and a significant portion of India within its borders. This expansiveness is not just geographical, but cultural, too. It is home to more than 1.2 billion people—not far shy of China’s populace that speaks more than 2,000 languages. By comparison, Europe houses a little over 200 languages and dialects. The truth here is simple: Africa is a region, not a market. We must understand that Africa is not a homogeneous entity but a diverse continent consisting of 54 markets, each with distinct political dynamics and economic climates. Africa is a region of diverse nations. As such, the argument stands firmly that we cannot logically “invest in Africa” because it is not one country with a single currency, government and regulatory framework, social system or business ecosystem. From a business point of view, companies do not operate “across Africa”—they instead have the opportunity to win a share in specific national markets. Without a doubt, over-generalisation cannot win in the region as operating in our context requires a tailored approach for each specific national market, and trying to extrapolate trends for consumer app adoption generically will only produce an inaccurate and dangerous conflation of no value. There’s wisdom in the opportunity of complexity The technology, media, and telecommunications (TMT) industry serves as a prime example of the intricate dynamics that make it challenging to adopt a one-size-fits-all approach to doing business in the region. As providers of connectivity and essential services, telcos play a significant role in building trust among consumers as they enable them to connect with others anywhere in the world and make and receive payments. Looking at the sector, even from a basic perspective, we realise the depth of variations and nuances in market dynamics as there are extensive and innovative ecosystems. In East Africa alone, consider some of the giants in digital payments and mobile money solutions: Safaricom’s M-Pesa in Kenya, MTN Network’s Mobile Money in Rwanda and Uganda, and Airtel Money in various countries. Within renewable energy and green technology spaces, there are companies such as M-KOPA Solar, BBOXX, and Powerhive which offer affordable and clean renewable energy solutions using solar power and battery storage, leveraging the Internet of Things (IoT) and cloud technology for monitoring and management. Artificial intelligence (AI) is also leaping ahead with the likes of Twiga Foods, Shield, and Flare utilising AI and machine learning algorithms to optimise supply chain logistics, combat financial fraud, and optimise emergency response systems. In terms of mobile technology, East Africa has witnessed remarkable mobile penetration, with this technology becoming the primary means of communication and internet access. Mobile money services and mobile applications are now widely adopted, with efforts being made to expand broadband coverage by deploying 4G and 5G networks. Network infrastructure is also progressive with significant investments made in submarine and national fibre optic cables, improving international connectivity and broadband coverage—this is just a glance at the full picture of the advances taking place. There’s no x-factor in entrepreneurship Another common misconception is the belief that all African startups can be categorised as “X for Africa”. In reality, the startup ecosystem of the region has evolved in three waves. Initially, these businesses emulated ecommerce models like Amazon, followed by drawing inspiration from Asian counterparts. A third wave emerged with them adapting to the realities and requirements of local environments. This showcases the distinct entrepreneurial spirit and solutions that originate from within the African ecosystem. Assuming that global values apply to startups on the continent is another fallacy. In reality, valuations in African countries differ significantly, challenging the preconceived notions of Western investors. African deals are now valued at all-time highs, reflecting investors’ growing confidence and willingness to support these fast-growing businesses. Importantly, this discrepancy necessitates a more detailed appraisal method, considering the factors at play in each market. To achieve more, the right grasp of the continent is needed globally. Africa cannot be treated uniformly, and acknowledging and understanding the complexities of this is crucial to enabling a powerhouse of inclusive impact across the region. This article was contributed to TechCabal by Bernard van der Walt and Roy Kinoti Nkandau. Van der Walt is head of audit in Cape Town and leads the TMT sector for BDO South Africa. He is also a member of the managing committee in Cape Town. He has extensive experience in the media and technology sector, from start-ups to listed entities. Nkandau serves as the director of audit & assurance at BDO Rwanda. He has more than a decade of professional experience under his belt working across a plethora of industries ranging from NGOs, manufacturing, tourism, service, trading, energy, and health.
Read More