Amid high fuel costs, Uber launches electric motorbikes in Kenya
Uber has launched an electric motorcycle in Kenya but is only available in Nairobi for now. Uber has revealed an e-mobility product in the Kenyan market—an electric motorbike named One Electric. The launch is key as the worldwide automotive industry plans to transition toward electric vehicles, with countries such as the U.K. planning to phase out vehicles with internal combustion engines. This also marks Uber’s third key product announcement in the Kenyan market this year, following the rollout of an audio recording feature for safety and the integration of M-PESA into its payment system. “Now is the time to take solid steps that enhance sustainable practices and as a business, we are committed to being part of the collective efforts to reduce the carbon footprint. Through the launch of Electric Boda on our platform, we are proud to provide an option for emissions-free mobility in Kenya. This launch also supports our global efforts to become a zero-emissions platform by 2040,” said Frans Hiemstra, director and regional general manager, Uber, Middle East and Africa. The electric motorbikes, with an 80-kilometre range, are not owned by Uber; instead, they are under the management of Greenwheels Africa, an e-mobility company focused on electrifying motorbikes. This fleet partner will oversee all bike-related logistical matters, including maintenance and charging. Imran Manji, Uber’s head of East Africa, told TechCabal that Greenwheels currently operates only a few charging stations in Kenya, but they plan to increase them to ten before the end of the year. However, motorcyclists won’t be responsible for charging their bikes; rather, they will exchange depleted batteries for fresh ones at Greenwheels Africa’s stations. Manji clarified that Uber electric Boda cyclists will also be charged for the batteries based on their usage. “If a rider wants to swap a battery that is at 40%, they will only pay for 60% of charge at the station,” Imran told TechCabal. Riders won’t own the electric bikes although there are plans to sell the bikes to other Kenyans in the future. Greenwheels will lease them for Uber services through a collaborative partnership involving the e-mobility company, Uber, and the riders. The bikes will also complement the current Uber Boda service that uses fuel-powered motorbikes, now with a potential 20% price reduction. “We are doing our part to aid the transition to eco-friendly mobility products and to support national sustainability objectives. The launch of Electric Boda will provide Kenyans with one of the most affordable ways to move from one place to another, with prices 15-20% below the price of our existing product,” said Imran Manji. For now, the bikes will be accessible in specific areas of Nairobi and are set to extend to other Kenyan cities later. Uber has not revealed plans to launch this service in other African markets. Kenya seeks to tackle pollution following the launch of the National Electric Mobility Plan, aligned with the National Energy Efficiency and Conservation Strategy (2020-2025). This approach bypasses the need for parliamentary approval on tax exemptions for electric car imports by 2024. The plan’s core objectives involve implementing an automotive industry charter, providing eco-friendly driver education, and establishing sustainable road traffic management. High fuel costs in Kenya have led to increased expenses for locals, businesses, and transportation, impacting economic activities and living costs. Nonetheless, the government reinstated a fuel subsidy to stabilise pump prices. This led to the cost of petrol, diesel, and kerosene remaining steady at KES 194 ($1.34), KES 179 ($1.23), and KES 169 ($1.16), respectively, in Nairobi. According to Uber, the launch of electric motorbikes marks a potential 30-35% drop in operational expenses. The Bodaboda industry, which employs over 1.5 million youth in Kenya, contributes around KES 202 billion ($1.4 billion) to the economy each year, as per the World Bank. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Ugandan fintech Asaak acquires FlexClub as it expands to Mexico
Asaak joins Nigeria’s Paga as one of the few African tech companies to expand to Latin America. Founded in 2016, Asaak offered motorcycle and smartphone loans to Ugandans individually and through partners like SafeBoda. It has now acquired FlexClub on “friendly terms” as it pursues a growth strategy outside Uganda (and Africa). After becoming profitable on the back of its program that purchased motorcycles for boda boda drivers in Uganda, Asaak began to consider options for expansion Kaivan Sattar, CEO and founder of Asaak explains to TechCabal. While the Asaak team explored opportunities in Africa, their attention was caught by FlexClub, a Mexican startup offering car financing for Uber drivers and providing software that allowed South African car rental companies to offer vehicle “subscriptions” to drivers. FlexClub straddled two continents and offered different products, which was an operational strain. Asaak was looking for its next big asset financing market. At the same time, some of its partners in Uganda had pulled out of countries bigger than Uganda. So, it made sense to be open to anything. The Asaak team decided the right opportunity was to buy the asset financing business of FlexClub, which wanted to focus on its South African market. Both firms also shared mutual investors, which made the acquisition natural and one that investors welcomed. “As active investors in both Asaak and FlexClub, simple.Capital() spotted an opportunity to procure the acquisition of FlexClub’s Mexican business by Asaak. We congratulate both management teams on the closing of this transaction which we believe has significant benefits for both Asaak and FlexClub,” said Blake Musgrove, Partner and Chief Investment Officer at simple.Capital. Tinashe Ruzane, CEO and co-founder of FlexClub said the startup left its Mexican business to focus on South Africa because of the ”need for sharper focus in this very challenging economic environment, not [as] a reflection of the potential.” Going to Mexico Only 37% of adults in Mexico have accounts, and just 32% have made or received digital payments, according to the World Bank. It remains a primarily cash-based economy. One downside of this is that as businesses and individuals transact mostly in cash, they may not have a formal financial trail to qualify for credit. “Historically, there has been a lack of desire from the banks to go after clients that are perceived to be higher-risk, combined with the lack of the tools to properly service them,” David Poritz, co-CEO of Covalto, a Mexican digital banking and services platform told The Banker earlier this month. Where loans are offered, the collateral or interest charged is too expensive. Unsecured loans can cost up to 300% in annual interest. Mexico is also home to a thriving industry, thanks to the millions of tourists visiting hotspots nationwide yearly. Despite occasional altercations with regular taxi driver unions, the country is one of Uber’s biggest and most profitable markets. Kaivan has lived and travelled across East Africa for some years prior to Asaak. He spoke fondly of the cultural nuances that were embedded in how they sold Asaak as they grew the business to become profitable. Like getting spouses to participate in the loan product and co-sign the lease papers. And creating a children’s room for the anxious families who trooped to Asaak offices to pick up the family’s first motorcycle and future source of income every day. It’s largely the same in Mexico, “the men come with their wives or girlfriends, or the women come with their boyfriends to pick up their cars and they drive off with it,” Sattar says. Where it once financed boda bodas, Asaak will now be providing car loans, so replicating their Ugandan success in an entirely different setting with a different set of products will mean understanding more of these cultural cues and undertones for this new set of customers. “The vehicle is the entry point into our credit ecosystem, from which drivers can eventually access additional credit for fuel, repairs, smartphones or other needs they may have. We’ve proven this can be done profitably at scale for our clients, both online and in person,” Sattar said in a press statement. “We love asset financing/ Other people may not like it, but we love it,” Sattar declares. Having built a strong business serving informal customers in Uganda. He is counting on using that experience to make his vision of digitising Mexico’s lease-to-own vehicle market, profitable. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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2024/2025 ways to track UNISA application status
The University of South Africa (UNISA) is a renowned institution that attracts students from all over the country and beyond. If you have applied to UNISA and are eagerly awaiting a response, tracking your application status is crucial. Fortunately, UNISA provides a straightforward process to keep applicants informed about the progress of their applications. Here are the steps to track your UNISA application status in South Africa: 1. Access the UNISA Website to track application status Begin by opening your web browser and navigating to the official UNISA website (www.unisa.ac.za). This is the official source of information regarding your application status. 2. Click on “Check Your Application Status”: On the UNISA homepage, look for the “Check Your Application Status” link. This is usually prominently displayed to help applicants easily locate it. If you don’t find it, then there’s possibly no application pending or they’ve not started allowing checks for the last application. 3. Enter your details Once you’ve clicked on the link, you’ll be prompted to enter specific details to verify your identity. These details usually include your ID number, surname, and date of birth. Ensure that the information you provide is accurate. 4. Submit the information After entering your details, click on the “Submit” or “Check Status” button. The system will use the provided information to retrieve your application status. 5. View your application status Once the system processes your information, your application status will be displayed on the screen. UNISA usually provides detailed information about whether your application is still under review, has been accepted, or has been declined. 6. Check regularly to track your UNISA application status UNISA’s application review process may take some time, so it’s essential to be patient. However, you can check your application status regularly to stay updated on any changes. 7. Contact UNISA (if necessary) If you find that your application status remains unchanged for an extended period, or if you encounter any issues while checking your status online, it’s recommended to contact UNISA’s admissions department. They can provide you with more information and assistance. 8. Constantly check your email UNISA may also communicate updates about your application status via email. Keep an eye on your registered email address for any messages from UNISA regarding your application. 9. Keep track of deadlines While waiting for your application status, ensure that you keep track of any deadlines for document submissions, registration, or other related processes. UNISA’s communications might include important instructions that you need to follow promptly. Final thoughts on how to track UNISA application status Tracking your UNISA application status in South Africa is a relatively straightforward process. By following these steps, you can stay informed about the progress of your application and take any necessary actions as required. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Latest Home Affairs online booking steps 2023
In the digital age, convenience is paramount, even when it comes to government services. And the South African online booking system for Home Affairs appointments affords you such comfort. This system streamlines the process of obtaining essential documents and services, such as identity documents, passports, and marriage certificates. To help you navigate through the process, here’s a step-by-step guide to securing your Home Affairs online booking. Step 1: Visit the official Home Affairs online booking website Open your web browser and visit the official South African Home Affairs website. Ensure you’re on the legitimate website by checking the URL for authenticity. The URL is http://www.dha.gov.za/. Step 2: Create an account If you’re a first-time user, you’ll need to create an account on the website. Provide your email address, create a strong password, and input your personal details as required. Step 3: Log in to proceed with Home Affairs online booking After creating an account, log in using your newly established credentials. Step 4: Select preferred Home Affairs booking service Navigate to the online booking section and choose the specific service you require. This could range from applying for a new Smart ID card to scheduling a passport renewal. Step 5: Choose a branch Select the Home Affairs branch that is most convenient for you. Keep in mind the proximity to your location when making this decision. Step 6: Pick a date and time Depending on availability, choose a suitable date and time slot for your appointment. The system will display the available slots, allowing you to pick one that aligns with your schedule. Step 7: Confirm your Home Affairs booking/appointment details Review your chosen date, time, and service type. Verify that all the information is accurate before proceeding. Step 8: Provide personal details Fill in the required personal details for the service you’re booking. This might include information such as your identification number, full name, and contact information. Step 9: Additional information Some services may require you to provide additional information or documents. Make sure you have all the necessary paperwork ready to upload if required. Step 10: Payment Certain Home Affairs online bookings or services may have associated fees. You’ll need to make the payment online using the available payment options. Step 11: Confirmation Once you’ve completed all the necessary steps, you’ll receive a confirmation of your appointment via email. This confirmation will contain important details, such as your reference number. Step 12: Attend the appointment On the scheduled date and time, arrive at the selected Home Affairs branch with all the required documents. Present your reference number to the officials to ensure a smooth process. Final thoughts on the Home Affairs online booking By following these steps, you can make the most of South Africa’s Home Affairs online booking system, saving you time and hassle. Remember that while the online system offers convenience, it’s important to ensure your personal information is kept secure throughout the process. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Smart ID online application South Africa 2023
In an era characterized by digital advancement and streamlined processes, it’s little wonder why the South African government devised the Smart ID online application system some years ago. This innovative approach allows citizens to apply for their Smart ID cards conveniently from the comfort of their homes. By following a few simple steps, individuals can initiate the application process, reducing the need for in-person visits to government offices. In this article, we’ll outline the steps to go about the Smart ID online application in South Africa. Step 1: Register on the Department of Home Affairs website To begin the Smart ID application process, access the official Department of Home Affairs website. If you don’t already have an account, register by providing your personal details and creating a secure login. Step 2: Complete the Smart ID online application form Once registered, log in to your account and navigate to the Smart ID online application section. Fill in the required information accurately, including your personal details, address, and contact information. Verify all details before proceeding. Step 3: Schedule an appointment After completing the application form, you’ll need to schedule an appointment at a participating bank such as Ned Bank. The website provides a list of authorized banks where you can complete the process. Choose a convenient date and time for your visit. Step 4: Pay the Smart ID online application fee Pay the required application fee online using the provided payment methods. Ensure that you keep the payment receipt as proof of payment. Step 5: Visit the bank branch On the scheduled date, visit the selected bank branch to finalize your application. Bring along the necessary documents, including your proof of payment, identity documents, and any additional documents requested during the online application process. Step 6: Capture biometrics At the bank, your biometric data, including fingerprints and a photograph, will be captured for the Smart ID card. This step is crucial for identity verification. Step 7: Application processing Once your biometric data is captured, the bank will forward your application to the Department of Home Affairs for processing. This step involves verifying the information provided and producing your Smart ID card. Step 8: Collecting your Smart ID After a period of processing, you will receive a notification indicating that your Smart ID is ready for collection. Return to the bank branch where you submitted your application to collect your card. Remember to bring the necessary identification documents for verification. Final thoughts on Smart ID online application The digital identity online application process in South Africa streamlines the procedure of obtaining the card. By following these eight steps—from registering on the Department of Home Affairs website to collecting your card—you can navigate the process efficiently and conveniently. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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👨🏿🚀TechCabal Daily – New day, new coup
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday! ICYMI: Today’s the last day our referral prorgamme will be available. We’re shutting down the programme. We’ll dispense all unclaimed rewards by September 30, so if you’ve qualify for one, we’ll be in touch shortly. In today’s edition Gabon’s military ousts President Bongo Black Ostrich Ventures launches $20 million fund MultiChoice declares $108 million loss ARB rules against Rain for misleading customers with ads The World Wide Web3 Event: The Web3Bridge Conference Lagos Opportunities Politics Gabon military declares military coup Gabon army officers. Image source: Yenisafak Gabon is borrowing inspiration from Niger. Soldiers in the Central African country, on Wednesday, declared that they had seized control of the country, and put President Ali Bongo under house arrest. Why? Gabon’s electoral body announced that President Ali Bongo had won a contentious election, handing him a third term in power. Bongo’s family have ruled the country for 56 years, with Ali Bongo’s father, Omar Bongo, ruling for almost 42 years, from 1967 until his death in 2009. Bongo’s previous election victories weredisputed as fraudulent by opponents, and achange to voting papers just weeks before this year’s election prompted criticism. In the run up to his re-election, the Gabonese government blocked internet access and prevented three French broadcasters from broadcasting their election coverage. Zoom out: While this is Gabon’s first coup, it’s the latest in a string of coups in Africa. It comes weeks after the military takeover in Niger— where the country’s military junta also held the elected president captive.West Africa has witnessed seven coups in the last three years. The latest Gabon coup mirrors the growing frustration of African citizens who feel unable to hold governments accountable for their policies and vote them out. 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. Funding Black Ostrich Ventures launches $20 million fund Black Ostrich Ventures has launched a $20 million pre-seed and seed stage fund. The Los Angeles-based venture capital firm launched the fund to support African startups in the cleantech, supply chain, agritech, and edtech sectors. Image source: Zikoko Memes Supporting African startups: The newly created firm will support startups with check sizes ranging from $50,000 to $200,000, and the fund will focus on startups in Tanzania, Zambia, Morocco, and Uganda. Additionally, the firm will offer a follow-on investment of up to $1 million if the company reaches Series A. Ajani Windsor-Areago, the general partner of Black Ostrich Ventures, says that the decision to focus on these countries was made because he believes that there are significant opportunities for exits and deal activity in these markets. “If you look at the capital inflows into VC in Africa, the Big Four countries—Nigeria, South Africa, Egypt, and Kenya—attract all the capital. But most exits do not happen in these markets,” he said. Zoom out: Windsor-Areago also says that the support for African startups will go beyond funding. “We will be working with founders in a very unusual way. We’re going to surround founders with growth experts and marketing experts to help them grow their businesses. It’s one thing to be great at starting a company, understanding the marketing aspect of the business is another,” he said. Grow with Vesicash 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 Streaming MultiChoice loses $108 million on KingMakers investment MultiChoice is counting its losses. The pan-African broadcaster has lost R1.3 billion ($108 million) in acquiring a 49% stake in KingMakers. Image source: Zikoko Memes In September 2020, pan-African broadcaster MultiChoice acquired a 20% stake in the Nigerian online sports betting company, then BetKing, for R1.9 billion ($112 million). In 2021, MultiChoice increased its stake to 49% for $281.5 million, bringing the total value of its KingMakers shareholding to R5.9 billion ($393.5 million). However, in its latest financial results, the company stated that the naira devaluation in Nigeria and the expansion cost had caused an R2 billion ($108 million) write-down in its KingMakers investment. MultiChoice’s R5.9 billion ($318 million) stake in the betting company is now worth R4.6 billion ($248 million). Zoom out: Experts believe that despite the downturn, the KingMakers investment can still be salvaged. The fate of the KingMakers investment will solely depend on how MultiChoice addresses its operational challenges. Sports betting has proven to be a cash generator for companies that have chosen to play in this area, provided KingMakers maintains consistent client levels. Telecoms ARB rules against Rain for misleading ad Image source: Zikoko Memes South Africa’s Advertising Regulatory Board (ARB) has ruled against telecom Rain for misleading customers with an advertisement. The Ad promises customers they could “join now for just 1 Rand,” and get unlimited 5G home Wi-Fi and free monthly calls and data for two phones. The complaint was lodged by one Trevor Hill, who highlighted that the ad led customers to believe they would receive unlimited 5G home Wi-Fi and free monthly calls and data for R1($0.054). However, upon clicking the ad, customers were redirected to Rain’s website where the actual cost was R559 ($30), along with a joining fee of R1($0.054). The Ruling: The ARB found that the ad’s wording was deceptive, giving the impression of meaningful access to the product for R1($0.054) when, in fact, additional fees applied. The presence of “T’s & C’s apply” did not negate this misleading impression. The ruling noted that the advertisement failed to clarify that the 5G home Wi-Fi and free sim cards incurred separate subscription fees. Although Rain isn’t a member of the ARB, it is aware of the ruling and has made changes to the advertisement and its website. Zoom out: This isn’t the first time
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Three problems the Congo Business Summit will solve in Kinshasa
Noel K. Tshiani is the managing director of Congo Business Summit, a flagship conference and expo planned for October 12–13, 2023, in Kinshasa. With its vibrant history and culture, the Democratic Republic of Congo (DRC) has always been a land of potential. However, challenges faced by its entrepreneurs, especially startups, have been many. Congo Business Summit is the largest gathering of startups, innovation leaders, and investors in the DRC. This ambitious initiative is designed to solve three key problems that have prevented the Congolese startup ecosystem from reaching its full potential. Congo’s entrepreneurial spirit is deeply rooted in its people. Throughout history, Congolese have demonstrated resilience, adaptability, and a unique ability to innovate in the face of adversity. But like many emerging markets in Africa, Congo’s promising startups face unique challenges, often stemming from infrastructure limitations, lack of access to capital, and limited opportunities for international expansion. In our interconnected global economy, a nation’s growth trajectory is shaped by how seamlessly its companies can integrate into the international arena. Startups, with their nimbleness and knack for innovation, are at the forefront of this global integration. But without the right scaffolding, guidance and visibility, these nascent businesses risk being overshadowed in the immense global business ecosystem. Congo Business Summit is emerging as the critical link, connecting Congolese innovation with global opportunities. The summit is not just a solution; it is a statement. It announces to the world that Congo-Kinshasa is open for business and its entrepreneurs are ready to take on the world. By addressing the core challenges facing startups, the event aims not only to nurture the local ecosystem, but to position Congo as a burgeoning hub for innovation and real investment opportunities in the heart of Africa. The journey ahead is promising, and with collective efforts, the potential of the Congolese entrepreneurial spirit will be realised on the world stage. Let us delve into the three key problems that Congo Business Summit has identified and the solutions it offers: 1. Boosting global visibility The first hurdle is ensuring visibility for the private sector, the startup ecosystem, entrepreneurs, and the myriad solutions they bring to consumers. Unfortunately, brilliant concepts often fade into obscurity, deprived of the necessary exposure and audience. Congo Business Summit is addressing this visibility problem head-on. By cementing partnerships with the three leading online news media in Kinshasa, and expanding its reach with English-language outlets such as TechCabal, we are ensuring that these stories of innovation receive the spotlight they deserve, both in the French and English-speaking world. In addition, our proactive efforts to secure media coverage from countries such as Nigeria, Kenya, South Africa, the United States, the United Kingdom, and France are putting Congolese entrepreneurs in the global spotlight, championing their groundbreaking ideas, and ensuring that they receive the recognition that is vital to attracting investors, securing business partnerships, and reaching potential customers both in Kinshasa and internationally. 2. Enabling startup fundraising The lifeline of any startup is the capital that fuels its growth. Yet fundraising remains a daunting challenge for many Congolese startups. By inviting business angels and institutional investors from around the world to Kinshasa to participate in Congo Business Summit in October, we are creating a bridge between promising startups and investors with the financial resources to move them forward. This is not just about securing funding; it is about initiating a dialogue, educating investors about the country’s rich investment opportunities, and cultivating a sense of belief in the future of Congolese innovation. President Felix Tshisekedi announced on August 19, 2023, that the national government will prioritise innovation funding in the 2024 budget. 3. Building fruitful partnerships The third challenge involves developing commercial partnerships. Whether it is between startups and large corporations or government agencies in Kinshasa, partnerships are a major contributor to startup success. Congo Business Summit is not just another conference; it is a breeding ground for synergy. I invite not only local players, but also startups from abroad in Nigeria, Kenya, South Africa, France, the United Kingdom, Canada, Germany, Belgium, and the United States to come explore partnerships with Congolese startups. These interactions will open the door for Congolese startups to understand global markets and for international companies to explore partnerships with Congolese entrepreneurs, ensuring a two-way street of growth and learning. In conclusion, Congo Business Summit is more than an event; it is a solution to three key problems the startup ecosystem is currently experiencing in Kinshasa. It is about changing the narrative, driving growth, and ensuring that the Congolese entrepreneurial spirit is not only recognised, but celebrated and supported locally and internationally. Let us not just talk about the potential of Congolese startups, let us make it happen. For a brighter, more innovative Congo, the summit is the beacon that lights the way. That is why I invite business angels, institutional investors, and startups ready for expansion from around the world to join us in Kinshasa this upcoming October on this journey of transformation, networking, and investment exploration. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read MoreMultiChoice writes down $108 million on its investment in betting company KingMakers
Thus far, MultiChoice has lost R1.3 billion (~$108 million) in acquiring a 49% stake in Nigerian sports betting company KingMakers in three years. Can the company manage to turn its gamble on KingMakers around? In September 2020, pan-African broadcaster MultiChoice acquired a 20% stake in Nigerian online sports betting company KingMakers, then BetKing, for R1.9 billion (~$112 million). In 2021, Multichoice increased its stake to 49% for $281.5 million, bringing the total value of its KingMakers shareholding to R5.9 billion (~$393.5 million). In its latest financial results, MultiChoice stated that naira devaluation in Nigeria and the expansion cost had caused an R2 billion (~$108 million) write-down in its KingMakers investment. Multichoice’s R5.9 billion ($318 million) stake in the betting company is now worth R4.6 billion ($248 million). “Considering the fact that the 49% (51.23% effective interest) stake cost them around R6 billion (~$393.5 million), it seems in the interests of MultiChoice to try and save the business rather than having to face the prospect of having to further impair the asset or potentially even sell it at a significant loss,” independent financial markets analyst Jimmy Moyaha told TechCabal. MultiChoice is already burning cash in most of its verticals. In its FY 2023 annual results, the company withheld dividends from shareholders to fund Showmax. Funding another bet in KingMakers, which does have growing revenues but also crippling losses, might worry shareholders in the future. How did MultiChoice get here? On paper, the KingMakers deal seemed poised for success. MultiChoice planned to leverage its extensive sports coverage to boost the betting business. The model had worked well internationally, with sports broadcasters like Sky, Fox, and most recently, ESPN, having successfully entered the sports betting business. According to internal data cited by KingMakers, 77% of DStv subscribers are active betters or engage in match predictions, providing an extensive customer base for a betting product. Additionally, sports betting has grown tremendously in Africa over the last half a decade. According to a report [pdf] by KPMG, Africa’s gambling market was predicted to reach a value of $37 billion by 2022, with sports betting accounting for most of that growth. The majority of Africa’s Gross Gaming Revenue (GRR) is sports betting, is expected to rise by 17% by 2027, with online betting revenues growing from $2.9 billion to $5.5 billion. MultiChoice itself had alluded to the sports betting industry’s impressive growth projections as one of the driving seasons for the acquisition. “The global sports betting market is experiencing a growth surge. Africa comprises only 2% of global sports betting revenue and is poised for significant momentum as it plays catch-up,” the company had said at the time of the acquisition. But as MultiChoice would soon find out, growth projections and cumulative annual growth rates do not always mean much when operating in Africa. At the time of the acquisition, MultiChoice said that KingMakers’s ability to expand beyond Nigeria was one of the rationales for purchasing the stake. That has not gone well so far for unclear reasons. The company has had to pull the plug on expansion plans to Kenya and Ethiopia despite adding the experienced Ronnie Whelan as its new chief operating officer. Despite seeing growth in topline revenue since the MultiChoice transaction, that growth has come at a staggering expense to the company’s bottom line. For example, between 2022 and 2023, Kingmakers revenue jumped from $131 million to $198 million. However, its losses followed the same trajectory, increasing from $19 million in 2022 to $28 million in 2023 due to “investment to further scale the business and cash extraction losses out of Nigeria.” According to Moyaha, further losses would put Multichoice and its shareholders in a precarious position. “[Despite the revenues], MultiChoice has already had to raise an impairment of R2 billion on this investment. This impairment was a significant contributor to the group swinging into loss for the year. If the [Kingmakers] isn’t turned around and requires further impairments, MultiChoice could have to write down 18.7% of its non-current assets as per their FY 2023 financials,” he said. Regarding share price, according to Moyaha, shareholders are unlikely to be happy that KingMakers has already had the biggest negative impact on the group’s cash flows from investing activities. What’s next? Despite the headache that the KingMakers investment has caused for both Multichoice’s management and shareholders, according to Mpumi Ndiweni, CEO of advisory and investing firm Colmin Group, it can still be salvaged. “[KingMakers] would most likely focus on consolidation, so it gets out of the red, but MultiChoice needs an inflection point and may want to pump in more resources to achieve that. Let’s hope Multichoice has not missed its inflection point for the investment to lift it, given the African betting long play. Its share price has fallen about 50% this year alone,” Ndiweni told TechCabal. Although KingMakers would leverage MultiChoice’s customer base to differentiate itself from the competition, it still operates independently. However, according to Moyaha, to turn the company’s fortunes around, Multichoice might have to play an active role in the operations of Kingmakers. “Even though MultiChoice holds an effective interest of 51.23% from its 49% stake in KingMakers, the group considers this an associate rather than a subsidiary. This means that while Multichoice does have a significant level of influence in the business, it ultimately does not have control. This may be something they would need to change if they do not agree with the new strategy or find themselves having to invest more in the business,” he said. Sven Forrsman, head of equity sales at Kela Securities, reiterates the need for better management at KingMakers. “The loss in the Kingmakers deal is significant and is probably caused by too much spending on marketing in their expansion efforts. Betting [companies] have shown that there is no J Curve and don’t gain as much traction in a competitive space. Although MultiChoice does need to diversify its business, I don’t think sports betting, although [growing significantly], is the answer,” Forrsman
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Chargel expands into Cote d’Ivoire
Image Source: Chargel After a $2.5 million seed raise and an expansion into Cote d’Ivoire, Chargel, a Senegalese logistics startup that connects truck drivers with shippers, wants to change how goods move through Francophone Africa. Senegalese brothers Moustapha and Alioune Ndoye sold their last business, Teranga—a hospitality tech startup—in 2018, and were advised to use the proceeds to set up a trucking business on the side for extra revenue. This led to them understanding all the problems that the trucking business faced in Senegal and how technology could solve them. “We bought the trucks, and we had to think about how to get businesses and how to get paid. We saw so many operational inefficiencies and some gaps in financing the trucks. We felt technology could change that, so we decided to launch Chargel,” Moustapha told TechCabal over a call. Chargel is a logistics company that connects shippers with trucking companies, digitising Francophone Africa’s road freight transport network. Shippers can also track their goods with GPS on Chargel’s platform and receive notifications once they are delivered. Startups like Chargel that connect truckers with demand operate in a fragmented logistics sector that could be worth $80 billion with a 4.5% annual growth rate. The inefficiencies in the sector are estimated to add about 40%-60% to the prices of imported goods. Chargel has made deliveries into five Francophone countries; Cote d’Ivoire, Senegal, Mali, Mauritania, and Guinea. However, it has only expanded its base into Cote d’Ivoire for now. Moustapha said this was because most of its Senegalese customers are also in Cote d’Ivoire and the port of Abidjan is one of the biggest in Francophone Africa. Earlier this year, in April, Chargel announced that it had raised a $2.5 million seed round with participation from investors like Logos Ventures, Ventures Platform, Foundation Botnar, DFS Labs, and Seedstars. According to Moustapha, Chargel raised the funds because the brothers convinced investors that they could leverage their experience to solve the trucking problem in Francophone Africa. Moustapha told TechCabal that Chargel makes money from the margin it gets from negotiating prices with transporters like Maersk and Grimaldi and selling transportation from its pool of independent truck drivers to them. Although he refused to disclose how much revenue the startup generates, Moustapha told TechCabal that the startup had made seven figures in USD this year. (Chargel made over $1.2 million in GMV in 2022). In Senegal, the startup has secured over 3,000 trucks on its platform. Moustapha told TechCabal that this resulted from the operational efficiency that the drivers experienced with Chargel. The startup is also in the final stages of a deal with a Senegalese insurtech that will allow all the drivers on its platform to access accidental insurance and life insurance. Chargel also insures every good that passes through its platform for the shippers. “When it comes to insurance, the way we look at it is very simple. When you come to Chargel, we insure that your goods are transported from point A to point B on time. So if something happens between those two points, it’s on us,” Moustapha said. Last month, the Senegalese government shut down the internet to prevent disturbances to public order. This was the second time the government shut down the internet in two months. Moustapha called the shutdowns “unfortunate” and told TechCabal that they erode trust in the country’s startup ecosystem. “We hope that the government can find ways to deal with their issues without having to shut down the internet because it affects everything, like mobile money and GPS tracking,” he added. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Francophone’s startup ecosystems wish to rival Africa’s Big Four
Francophone governments are trying to accelerate their startup ecosystems but it has not been a concerted effort among the countries in the region. In a hotel room in Abidjan, the commercial capital of Cote d’Ivoire, where I am staying with other attendees of the Cyber Africa Forum, Freddy Mpinda, an advisor to the digital minister of the Democratic Republic of Congo (DRC), tells me how the Congolese government is trying to lay the foundation for a startup ecosystem he hopes can rival the English-speaking Big Four (Egypt, Kenya, Nigeria, and South Africa). These four countries lead the continent in almost every metric used to gauge a startup ecosystem. According to data from Startup Blink, a startup ecosystem research company, the four countries and Mauritius are the top five countries for startups in Africa. The funding pattern also agrees; the Big Four have historically seen the most investment and accounted for more than half of funding on the continent last year. As expected, they also lead in the number of startups, IPOs, and exits. In all of these metrics, francophone countries rarely appear. But this does not deter Mpinda from believing that francophone Africa could have a seat at the high table. He tells me of all the steps the Congolese government has taken under President Tshisekedi in the past four years to accelerate its digital economy. “You have to understand that before President Tshisekedi, other presidents never said or did anything about the digital economy. Now, we have a national digital strategic plan and, for the first time in years, a digital ministry. We also have an agency to develop the digital economy, and last year we signed a startup act.” According to Mpinda, these steps are already bearing fruit. “Before now, it was difficult to collect taxes, but now our finance ministry has used technology to improve how they collect taxes. Also, when COVID-19 came, we did not have any e-learning solutions, but now we have many solutions for e-learning,” he said. “If the pandemic comes back, the DRC is prepared for e-learning,” he jokingly added. Mpinda, however, acknowledged that the government alone cannot create an ecosystem. Across francophone Africa, it has been noted that the entrepreneurial culture is low. “Our young people would rather work in the public sector than build a business. That’s not a good idea. We need them to go to the private sector to make money. [The government’s] goal is to encourage them to build successful businesses,” Mpinda said. Fintech startups are already emerging, albeit slowly, in the DRC. In June, Tuma raised $500,000 in funding—the largest investment round for a Congolese fintech ever. In August, DRC-based VaultPay, a fintech building core payments infrastructure for Central Africa, was unveiled as the third African startup selected for Y Combinator’s 2023 summer class. For francophone startups playing catch-up, imitation is the cheat code In the Republic of Benin, the government’s efforts have focused on improving internet penetration and digitising the public sector, as the country’s startup ecosystem is still very much in its infancy. The government has built a Tier 3 data centre, and there are plans to build more data centres, according to Maximilien Kpodjedo, the digital project manager for Benin’s president. “We are adding more data centres so we can have resilient storage of our critical data, applications, and systems for the country. We want to host [our critical data] in-house instead of exporting it abroad, where we do not have the sovereignty of our data,” Kpodjedo said. The government has also launched a 3,000-kilometre fibre-optic network that has boosted internet connectivity from 20% in 2016 to more than 70% in 2022. For startups in the country, the government has introduced tax benefits. “We try to analyse and see the best-performing startups to provide them tax incentives during the first three to five years. When they import some equipment or infrastructure to do business, they receive exoneration,” Kpodjedo told me in Abidjan. He added that these tax incentives and an upcoming startup act could act as a “shortcut” for the development of startups. Ouanilo Medegan Fagla, a director of Benin’s information and digital systems agency, told me that the government is improving the talent pipeline by “trusting the country’s youth” and supporting them with programmes and scholarships. “Since 2017, we have had a national challenge we call Hacker Lab, where we take 80 young people and test them for two days. At the end of the two days, we select the best to come and work for the agency,” he said. Some francophone governments, like Tunisia and Senegal, have already enacted Startup Acts, while Cote d’Ivoire is set to launch its startup act. In Tunisia, the government also runs a national programme that offers startup grants. How Kainene von Savant, an AI bot helped me in the past month It has not always been smooth sailing for the digital economy in Africa’s francophone region. Last month, the Senegalese government shut down the internet to prevent disturbances to public order. This was the second time in two months that the government shut down the internet. Both shutdowns have been associated with the arrest of Ousmane Sonko, an opposition leader in Senegal. Politically motivated internet shutdowns are not peculiar to Senegal. In Gabon, the government shut down the internet as a way to control the narrative of its recently conducted elections. These actions threaten the growth of startups and reduce investor confidence. Moustapha Ndoye, the CEO of Chargel, a Senegalese logistics startup, called the shutdowns “unfortunate” and told TechCabal that they erode trust in the country’s startup ecosystem. Government assistance in the francophone region could go a long way in accelerating the startup ecosystem, but there needs to be a more concerted effort from all the countries to allow a region that is connected by a similar language, currency, and culture to establish itself as a regional tech powerhouse. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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