In a move to support SMEs, Safaricom’s M-PESA increases daily limit to $3,400
M-PESA customers have been limited to a little over $1000 in daily transaction caps for a long time. This changes today as the telco also increases its wallet limit. Safaricom’s M-PESA customers can now hold up to KES 500,000 ($3,480 in the current exchange rate) in their wallet accounts following approval from the Central Bank of Kenya. The changes will take effect from August 15. Safaricom has also increased the daily transaction limit to KES 500,000 ($3,480) per day. The current per transaction limit of KES 150,000 ($1,043) remains unchanged, allowing customers to conduct multiple transactions up to the daily limit of KSh 500,000 ($3,480). Safaricom CEO Peter Ndegwa believes the rise in cashless transaction limits would help small businesses conduct business better. “We appreciate the role that the Central Bank of Kenya has played by constantly providing guidance on innovations and protections that we have put in place to strengthen M-PESA’s adherence to KYC, anti-money laundering, and other financial regulations and safeguards. The increased account limits will provide customers, especially small businesses, with increased convenience as the share of cashless transactions continues to rise,” he commented. According to the telco, this adjustment is set to cater to businesses with higher transaction values, particularly small and medium enterprises, as the proportion of cashless transactions grows. Safaricom backs this claim with some key numbers. For instance, from the last financial year to March 2023, more than 606,000 businesses received payments through Lipa Na M-PESA, with a total of KES 1.625 trillion ($11.3 billion) transacted in the 12 months. Lipa na M-PESA contributes about 40% of the carrier’s service revenue. The mobile money product is the telco’s biggest earner among other M-PESA-related products. In the same period, M-PESA’s revenue grew 8.8% to KES 117.19 billion ($816 million), backed by increased usage and chargeable transactions. These numbers, however, were lower than those recorded in the previous financial year. Safaricom said this was due to macroeconomic effects. Other key M-PESA stats (as of March 2023) Safaricom said in a report that its one-month active M-PESA ARPU rose 1.9% to KES 311.28 ($2). Transaction value and volumes rose 21.4% to KES 35.86 trillion ($250 billion) and 33.5% to KES 21.03 billion ($146 million), respectively. Charges for M-PESA to bank transactions resumed on Jan 1, 2023, with reduced tariffs. M-PESA agents, where users go to withdraw or deposit cash, grew 0.1% to over 262,000.
Read MoreMTN Group service revenue rises by 15.2%
MTN Group, Africa’s largest telco, said that its fintech unit grew by 22%, even as MoMo user growth remained flat. On Monday, MTN Group, shared that its service revenue grew for the first half of the year to $5.6 billion from $4.8 billion in the same period in 2022 in constant currency. This represents a 15.2% increase. The telco is present in 16 African countries. Multi-national companies like MTN use constant currency exchange rates to eliminate the effect of fluctuations when calculating financial performance numbers for publication in financial statements. According to MTN, this growth came from a 24% increase in revenue from data services, 22% from fintech services, and a 6% increase from voice services. The group’s pretax profit shrank from $979 million to $964 million. The group’s EBITDA margin also reduced from 44% to 43.6%. The group said this was because of inflation and foreign exchange depreciation, which placed upward pressure on costs. The number of subscribers increased by 3.6% year-on-year to 291 million. The group said its growth was impacted by the conflict in Sudan. Active data subscribers grew by 7.4% to 139 million, with MoMo customers remaining stable at 60 million. The group said Nigeria’s cash scarcity and a focus on active wallets and base clean-up in Cote d’Ivoire were to blame, even as active agents grew by 18% to 1.3 million. Mastercard to buy a minority stake in MTN’s fintech unit, after investing $100m in Airtel’s fintech In line with policy, no interim dividend was declared for H1, but the minimum final dividend for the end of the year will be $0.17. The group also said it had signed a memorandum of understanding with Mastercard for the payment company to buy a minority stake in its fintech business, which it values at $5.2 billion.
Read More
South Africans’ interest in AI on the rise, according to Google Trends
South Africans’ interest in artificial intelligence is on the rise, according to Google Trends search data. According to data from Google Trends, South Africans’ interest in artificial intelligence is on the rise. The data measured the number of searches about the technology in the country. The initial interest peaked in December 2022, a month after OpenAI released their widely popular AI chatbot ChatGPT. The next peak was in February 2023, the same week that Google released their ChatGPT competitor, Bard. The first week of April also saw a new peak in searches on AI, followed by the week of July 16th which recorded the highest volume of searches ever in the country. Searches about AI are on the rise in SA, according to data by Google Trends. (Image source: Google Trends) Some of the most popular search topics on AI were information about conversational AI chatbots. ChatGPT led the way in terms of the number of search queries, followed by BardAI and other generative AI tools including Character.ai and Dawn.ai. The Western Cape attracted generated the most number of search queries, followed by Gauteng, Eastern Cape and KwaZulu-Natal. In July 2023, following increasing interest in AI in the country, the South African Artificial Intelligence Association (SAAIA) was launched in partnership with the Tshwane University of Technology (TUT). The body aims to promote responsible AI adoption for commercial and societal benefit in South Africa as well as attract foreign direct investment, facilitate international market access for African tech companies, and showcase South African AI innovation. Some of the founding members of the association include Google, the University of Johannesburg, the Western Cape Government, and Gauteng Tourism Authority.
Read More
Why the University of Cape Town leads Africa in producing tech startup CEOs
The University of Cape Town has produced the most CEOs of tech startups in Africa. TechCabal asked alumni and industry experts about the institution’s secret sauce According to Africa: The Big Deal data, the University of Cape Town (UCT) leads the continent’s tertiary institutions regarding alumni who became CEOs of African tech startups. The Cape Town-based institution has produced 74 CEOs, followed by The American University in Cairo and the University of Oxford. Of the top 12 universities to produce the most CEOs, only 42% were African institutions, with the majority comprising US schools, followed by the UK and France. Some of these US institutions include Stanford, Harvard and MIT. The University of Cape Town leads the way in producing tech startups CEOs in Africa Understanding the trend According to Thando Hlongwane, co-founder and CEO of fintech startup Lipa Payments and an alumnus, UCT provides access to startup ideation initiatives, incubation facilities, and connecting students with the broader Cape Town startup ecosystem. Hlongwane added that ideation initiatives such as UCT Flux allowed students to build new startups using a design thinking methodology. “UCT had an enabling environment [for building tech products]. The information systems department had an innovation lab I was a part of. We had access to 3D printers, virtual reality machines, and a whole lot of other tech, which allowed us not only to ideate but also create,” Hlongwane told TechCabal. “The alumni ecosystem of the school was also quite supportive, and through it, I met Jason Basel, founder of Akro, who today remains a mentor of mine and helped one of my other startups, Zaio, raise its first round of funding.” Anda Ngcaba is the innovation director at UCT’s Financial Innovation Hub, and a crucial part of his job is leading the hub’s innovation activities and pre-incubation programs. Students are given bursaries to cover living expenses and incentivise them to focus on building their startups. The hub also puts the startups in touch with their network of investors. “We have about five research work streams ranging from blockchain applications to financial inclusion. I work hand in hand with the students to help them find ideas within their research and commercialise it. We either try and prepare the students that come out of the course for entrepreneurship or if we see that this person isn’t very entrepreneurial driven, we then try to find them a spot in one of our startups or in the broader ecosystem,” Ngcaba told TechCabal. Seven startups from the hub have raised R16 million in grant and equity funding in the last three years. More entrepreneur development initiatives UCT Flux is another entrepreneur-development initiative by the university. Flux is an entrepreneurial business game hosted by UCT Careers Service (CS) with the help of its employer partners. It allows students from all degrees and years of study to compete in teams to solve real-world challenges and practise their strategic-thinking skills. It uses the growing trend of gamification to help teach studentpreneurs the skills involved in business planning and how to pitch an idea. During the full-day challenge, teams receive advice from experts in Strategy, Marketing, HR and Finance. They then compile a business strategy and solution, which they pitch to a panel of judges. Three teams are chosen as finalists and square off in a final 90-second elevator pitch, after which the winner is chosen. “[FLUX] encourages [students] to think about questions such as, ‘Where is the funding going to come from?’ or ‘What are the business’s fixed costs?’. Although they have great business ideas, these are some practical questions that many students have never even contemplated. This makes the event an amazing learning opportunity,” said David Buckham, co-founder of Monocle, one of the event’s sponsors. There’s still room for improvement Despite producing the most CEOs, South African institutions like UCT still have some way to go. According to data by Statista, Nigeria has the most number of startups on the continent, with 3,360 entities, followed by Kenya with 1,000 and South Africa with 660. South Africa also lags in attracting venture capital [pdf], drawing $550 million in funding in 2022 through 78 startups. This figure is dwarfed by Nigeria’s $976 million from 180 funded startups, Egypt’s $812 million from 131 startups and Kenya’s $574 million from 90 startups. According to Clive Butkow, CEO and partner at Kalon Ventures, a Johannesburg-based venture capital firm, the South African startup ecosystem would benefit significantly from founders who are apt at the technical and business aspects of running a startup. Butkow believes South African universities produce the continent’s brightest technical and engineering talent. However, to supplement this, he believes there needs to be more emphasis on teaching students entrepreneurship so that their solutions become scalable and fundable startups. “I receive numerous pitch decks from student-founded startups, and what is constant in these is the lack of clarity on how exactly the product would make sense business-wise,” Butkow told TechCabal on a call. “To build a venture capital attractive startup takes more than just writing code. Universities must also enforce unit economics, accounting and other aspects in their course outlines. Combining top-tier engineering and top-tier business talent would elevate the South African startup ecosystem to another level.” This view is shared by Ndabenhle Ntshangase, an alumnus of UCT and co-founder and CEO of AirStudent Travel. Students can make travel bookings together and access group rates on this group booking platform. “My course gave me foundational skills of building a technology product, but what also matters, and perhaps was not fostered enough, are in-depth skills on the technical and business side of building a startup,” said Hlongwane to TechCabal. Hlongwane cites aspects like business development, marketing, and sales as areas that the school’s curriculum could better address. With entrepreneur support structures like the Financial Innovation Hub and Flux, it should not be surprising why UCT leads the way in churning out tech CEOs. However, challenges like a lack of support for non-technical aspects of tech entrepreneurship still need to
Read More
Latest way to check GOG payslip, ePayslip 2023
GoGPayslip is a platform introduced by the Ghanaian government for its employees to facilitate the process of viewing and managing electronic payslips. This article serves as a comprehensive guide on how to efficiently check your GoG payslip or ePayslip in Ghana. 1. Accessing the GoGPayslip website Open a web browser on your computer or mobile device and navigate to the official GoGPayslip website (www.gogpayslip.com). 2. Login or Register If you’re a registered user, enter your email address and password to log in. If you’re a new user, click on the “Register” button and follow the prompts to create an account. You’ll need your employee number and other relevant information. 3. Accessing your profile to check your payslip (ePayslip) Once logged in, you’ll be directed to your profile page. Here, you can view your personal details, including your employee information and payslip history. 4. Check your payslip ( ePayslip) Locate the “Payslip” section on your profile page. You’ll typically find it as a tab or a button. Click on it to access your most recent ePayslip. Afterwards, do the following to check your GOG payslip ( Select the Month you want to download Click on Generate 5. Understanding the ePayslip Your ePayslip will display various details, including your basic salary, allowances, deductions, and net pay. Take your time to review each section to ensure accuracy. 6. Download and Print If needed, you can download and print a copy of your ePayslip for your records. Look for a “Download” or “Print” button on the ePayslip page. 7. Checking past payslips To access previous ePayslips, navigate to the “Payslip History” section. Here, you can select the desired month and year to view and download older ePayslips. 8. Updating information If you notice any discrepancies in your personal details or ePayslip information, the platform may allow you to update certain fields. Look for an “Edit Profile” or “Update Information” option. 9. Logging out Always remember to log out of your GoGPayslip account when you’re done viewing your ePayslip. This helps ensure the security of your personal and financial information. Final thought on how to check GOG payslip Checking your GoG payslip ePayslip is pretty easy and it provides employees with quick and convenient access to their income details. By following this step-by-step guide, you can easily view, download, and manage your ePayslips, promoting transparency and efficiency in the payment process. Embracing digital solutions like GoGPayslip reflects the evolving landscape of payroll management in Ghana’s workforce.
Read More
Founders Factory raises $113 million to fund African startups
Founders Factory Africa, an African early-stage startup accelerator and venture studio, has raised $113 million to fund African startups. The studio says it will become sector-agnostic and double down on addressing gender imbalances with the new funding. Founders Factory Africa has secured $114 million in funding to scale its model across the African tech ecosystem. The additional funding comes from the Mastercard Foundation and Johnson & Johnson Impact Ventures, an impact fund within the Johnson & Johnson Foundation, and follows on from previous investments by Standard Bank, the Small Foundation, and Netcare. Founders Factory’s portfolio cuts across 55 ventures in 11 African countries. The portfolio covers fintech and healthtech companies and includes Asaak, an asset financing startup for boda boda drivers in East Africa; Envisionit Deep AI, a South African medical technology company using AI to transform medical imaging diagnosis; Fresh Source, an Egyptian food tech startup. The studio says it will use this funding to become sector-agnostic, address gender imbalances in the ecosystem, broaden its capital investment offering to include non-dilutive capital, and strengthen internal capacity. An analysis of Founders Factory last fund. The venture studio combines a traditional venture capital approach with what it describes as, “bespoke hands-on venture support.” In addition to equity checks of up to $250,000 for ventures at the idea, pre-seed and seed stages, it can invest up to $300,000 in additional equity-free capital to “catalyse investments.” This non-dilutive funding is meant to provide founders with additional runway to pursue growth and catalyse other investors. “We are excited to have new and dynamic funding, which follows on from previous investments into Founders Factory Africa by Standard Bank Group, Small Foundation, and Netcare Group,” said Alina Truhina, co-founder of Founders Factory Africa. “Our new fund will allow us to continue supporting the continent’s most promising early-stage ventures – and their exceptional founders – with the capital and resources they need to fuel their growth,” said Sam Sturm, the chief portfolio officer of Founders Factory Africa.
Read More
2023 to 2024 UI fees for old and new students
The University of Ibadan (UI), one of Nigeria’s most prestigious federal institutions of higher learning, has recently followed in the steps of the University of Lagos (Unilag) in increasing fees that new and returning students are billed to pay. Sequel to the Presidency’s debunk of tuition fee increment notions, the University of Ibadan in a document released regarding the proposed fees revision, implied accordingly that students are getting “Free Education” because the tuition fees box was marked “Nill”. Categorically, new University of Ibadan students making use of digital infrastructure, could alongside other mandatory fees like Technology Levy, be paying as much as ₦295,500. See the breakdown of the revised fees for old and returning students of the University of Ibadan below: New UI fees for new students 2023 New UI fees for returning students 2023 There are currently rumours that the premier University will also be increasing fees for services like online transcript application, certificate processing, and so on. Concerns regarding UI’s new fees on social media The fee review news has stirred and sparked debates and discussions across social media from demographics including students, parents, faculty members, and the general public. The increment has been touted to significantly increase the financial burden on students and by extension their guardians or parents. News coming from sources in the university administration cited various reasons for the fee hike, including the need to improve infrastructure, balance the costs of running with current economic realities, enhance academic quality, and attract top-notch faculty members. Proponents of the increment argue that such steps are necessary to maintain the university’s reputation and ensure its competitiveness on a global scale. However, critics contend that the sudden and substantial increase disproportionately affects students from low-income families and undermines the institution’s long-standing reputation of providing affordable education. One of the primary concerns arising from the fee increment is its potential impact on enrollment rates. As tuition becomes less affordable, many students might be forced to abandon their dreams of attending the University of Ibadan. This could lead to a decline in diversity, academic excellence, and a sense of inclusivity on campus. Moreover, critics worry that the financial burden might discourage prospective students from pursuing higher education altogether, perpetuating a cycle of limited opportunities and socio-economic disparities. Final thoughts As other federal universities like Obafemi Awolowo are expected to unveil their revised fees too, there’s a significant debate about the direction of higher education in Nigeria. The fees increment raise important questions about the affordability of education, equal access to opportunities, and the role of universities in society.
Read MoreVodacom insists Maziv acquisition is good for competition in SA despite regulator’s rejection
Following a decision by the competition commission to halt Vodacom’s intended acquisition of Maziv, the company has issued a response, rebutting the competition concerns outlined by the regulator. South African mobile network operator Vodacom has responded to a decision last week by the country’s competition regulator to halt its acquisition of Maziv, a holding company whose assets include fiber network operators Dark Fibre Africa (DFA) and Vumatel. “The Commission is of the view that the proposed transaction is likely to substantially prevent or lessen competition in several markets and that the conditions offered do not fully address the resultant harm to competition,” the regulator said. Additionally, the commission stated that the public interest commitments provided by the merger parties did not outweigh the competition concerns. In its response seen by TechCabal, Vodacom said it is disappointed in the regulator’s decision but intends to pursue other avenues to make its case. “Having engaged extensively with the Competition Commission’s investigative team since the proposed transaction was announced, Vodacom is surprised and disappointed with the Competition Commission’s recommendation given that both Vodacom and CIVH have endeavoured to thoroughly address competition-related concerns through a list of remedies and public interest commitments put forward to the Competition Commission,” said Vodacom Group spokesperson, Byron Kennedy. Furthermore, the company intends to showcase the strong public interest and pro-competitive advantages the proposed transaction would have on the fibre market and the country. Contrary to the commission’s conclusion, Vodacom believes the proposed transaction will help bridge the digital divide and enhance competition in the fibre market as the parties have committed to ensuring access to Maziv’s fibre assets. Vodacom’s commitment to ensuring that the deal bridges the digital divide in the country and fosters competition includes initiatives such as a commitment to create up to 10,000 new jobs and SMME development by establishing a new enterprise and supplier development fund to the tune of R300 million over three years. Maziv has also committed to passing at least one million new homes in lower-income areas with fibre infrastructure over five years. Furthermore, the company states that the investment, which is more than R13 billion, would come when attracting capital investment into South Africa is particularly challenging. Following the suggestion by the commission, the case will now move to the competition tribunal, which adjudicates on matters referred to by the commission. Should the tribunal uphold the recommendation by the commission not to greenlight the transaction, Vodacom has the option of going to the Competition Appeal Court, which considers appeals or reviews against tribunal decisions.
Read MoreKenya’s Revenue Authority is auctioning ‘overstayed items’ in Mombasa port
Kenya’s tax changes have sparked a cargo crisis at Mombasa port. Kenya Revenue Authority (KRA) is now auctioning overstayed goods with a $10 entry fee. The Kenyan tax regime has undergone critical changes in the past few months, introducing new regulations to widen the tax bracket. These legislative adjustments have compelled importers to forgo picking their cargo from the port. Amidst these strict regulations, the Kenya Revenue Authority (KRA) has not relaxed its stance on enforcing tax regulations. To this end, a substantial amount of cargo is yet to be retrieved from the port. In response, the KRA has launched an auction from August 14 to August 20. This auction presents an opportunity for the disposal of overstayed cargo. “KRA is running an online auction to sell overstayed cargo at the port of Mombasa. The auction is running from Monday 14th August 2023 to Sunday 20th August 2023,” KRA posted on X. A glance at the auction page show vehicles as some of the most popular items, alongside electronic devices such as computers and televisions. Bidding regulations Kenyans must have a valid iTax account and an active email to participate in the action exercise. Upon entry, a non-refundable $10 fee is then paid for auction participation. Items are auctioned on an “as-is” and “where-is” basis, precluding replacement requests or refunds. KRA says it reserves the right to modify auction lots before bidding starts. A successful bidder will then receive an invoice after the auction ends. Within 48 hours, the winner must send 100% of the bid amount. Failure to meet this deadline will result in the item being offered to the second-highest bidder. Winners are granted three days from payment to retrieve the item; otherwise, they become liable for warehouse expenses from the sale date onward. No additional tax for winning bids KRA adds that the bidding price is non-negotiable, and no taxes will be applied. However, upon winning, registration with National Transport and Safety Authority (NTSA) will be undertaken at a bidder’s cost. This mainly affects groups that will be bidding for the vehicles listed. The consolidated cargo question A few months ago, KRA introduced a new directive for importers of consolidated cargo, directing them to pay taxes based on transaction value, a shift from the previous fixed duty model of KES 200 (under $2) per kilogram for loose cargo, as part of an effort to address abuse of the initial cost-easing directive for small importers. Some importers of restricted items, including expensive mobile devices, television sets, and medical equipment, to name a few, had exploited loopholes to evade import permits. These importers circumvented using their PINs for declarations by opting for consolidation, resulting in owed VAT on their iTax PINs that could not be offset by sales VAT. To this end, the prices of devices shipped in as consolidated cargo have increased, as tax is now paid per item. A smartphone shortage is still due to importers neglecting to retrieve their cargo, which is presently stored in KRA warehouses. It has become clear that the KRA will not do a U-turn on the crisis, and importers will, in the long run, need to pay their fair share of taxes. However, this will see fewer smartphone retailers participate in the business thanks to the huge overheads.
Read MoreMastercard to buy a minority stake in MTN’s fintech unit, after investing $100m in Airtel’s fintech
Two years after investing $100 million in Airtel’s mobile money business, Mastercard Inc. has agreed to buy a small portion of the fintech business of MTN Group Ltd., another telecom company in Africa. Payment processor Mastercard Inc. has agreed to buy a minority stake in the fintech business of MTN Group Ltd., a major telecom company in Africa. MTN’s CEO, Ralph Mupita, says that they’re finalising the investment arrangements, as reported by Bloomberg. The cornerstone of MTN’s fintech endeavours is its mobile money product, MoMo, which has been valued at $5.2 billion, nearly 40% of MTN’s total market capitalisation. This follows Mastercard’s $100 million investment in Airtel Mobile Commerce BV, the holding company for Airtel Africa’s mobile money operations. With the investment, Mastercard bought a minority stake in the fintech arm of the telecom, just like it is set to do in MTN. [ad] Mastercard has previously connected its virtual payment service to MTN wallets, enabling MTN customers to make international payments online without needing a bank account. This puts MTN in competition with established fintech companies such as Flutterwave, and other major telecom contenders like Airtel Africa Plc, Safaricom Plc, and Vodacom Group Ltd. have also ventured into the fintech sector. MTN had previously shared plans to raise around $1.3 billion by selling assets. These plans include recent actions like selling and leasing back assets in West Africa and South Africa. This involves things like mobile-phone towers and their share in IHS Holding Ltd., a tower company listed in New York. However, the sale of this share has been postponed due to a disagreement with the management of IHS Holding.
Read More