- November 28 2023
LemFi suspends Ghanaian business after Central bank warning
Lemfi, the remittance startup that raised $33 million in a Series A round in August, has suspended its operations in Ghana one week after the country’s Central Bank said it was operating without regulatory approval. “LemFi users will be unable to send money to banks and mobile money in Ghana,” said LemfFi in a notice to its customers. Lemfi is one of eight remittance companies operating without regulatory approval, Ghana’s Central bank said, warning the public against using the named providers. Ghana’s Foreign Exchange Act allows the regulator to fine companies operating without approval and even prescribes the possibility of imprisonment. While it is unclear when Lemfi launched in Ghana, it named Efia Odo, an actress and influencer, as brand ambassador in January 2023. The company also hired a country manager and ramped up its marketing in Ghana. One source with knowledge of the company’s business said the company will engage Ghanaian regulators, much like it did in Nigeria before it received an International Money Transfer Licence(IMTO). The Central Bank warned the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) about dealing with the listed companies. Other suspended companies by the Ghana Apex bank have We regret to inform you that we are suspending all services to Ghana. As a result, you will be unable to send money to banks and mobile money in Ghana. For many African countries, remittances are an important source of foreign exchange. According to World Bank data, remittance inflows to Sub-Saharan Africa, grew an estimated 5.2% to $53 billion in 2022, compared with 16.4% in the previous year.
Read More- November 28 2023
Quick Fire
with Bemi Idowu
Olugbeminiyi Idowu is the founder and managing director of Talking Drum Communications, a public relations and communications consultancy that supports companies innovating in Africa to shape perceptions and get more effective publicity for the work they are doing. He is an African Tech PR specialist, with extensive experience in leading and delivering successful media campaigns for a wide range of companies – from established global players to Africa-focussed start-ups. What drew you to tech PR specifically? I’ve always been interested in seemingly complex things and the challenge of communicating the value of these things in a clear and meaningful way and this is a skillset that lends itself well to working in technology PR. My technology PR journey started with semiconductors, micro-components and data centres and it was only later that I started working on Software as a Service products and then startups. How do PR strategies differ for global players versus Africa-focused start-ups? PR at its core is basically the same everywhere. It is all about sharing and managing information to shape the perception of an entity. What differs is what the entity is trying to achieve and the context they are operating in. For example, a health tech startup in Europe will typically be trying to tell a very different story from one operating in Africa and success will most likely look different. Our job is to understand what success looks like and do what we can to support our clients in making it happen. One major issue that impacts how PR is done in Africa is the depth of media platforms we currently have. For example, the African tech media landscape is still relatively young and everything falls under the “tech” umbrella. In other parts of the world, you get to work with specialist publications that focus entirely on Information Technology, security, fintech etc. This means you get to tell deeper stories and explore a wider range of narratives for campaigns. What’s the most challenging aspect of your job? I can be quite impatient so this means I am always in a hurry. Dealing with people who don’t have the same sense of urgency can be very frustrating. How do you measure the success of a media campaign? At Talking Drum, we are very particular about understanding what our clients are hoping to achieve with PR and being clear about whether or not PR is the most effective way to achieve that goal. For example, we get some clients talking about using a press release to reach a download target for their app. I’m always quick to say PR can support that goal but it may not be the most effective. We typically see the most impact and ROI from our work when it comes to attracting talent, securing investment, establishing a narrative, brand leadership and stuff like that. These are all results that you can effectively measure and directly link to public relations activities. What’s a common misconception about tech PR? The biggest misconception is that it is just about distributing press releases. I understand where this comes from as press releases are an essential tool in the PR tool kit but there is so much more. There are so many strategies and storytelling tactics that come with PR, as well as different services that a PR professional or business can offer to support businesses in achieving their goals. How do you balance transparency and protecting a company’s interests? From a PR perspective, information should be shared on a need-to-know basis. Our job is to shape a particular perception of our clients and that means we’ll have to be selective about what we share and how we share it. However, it is important to note that this does not mean being deceitful. Honesty and integrity are non-negotiable (certainly for us at Talking Drum). We also have clear standards on the sort of companies we work with so that we don’t compromise our morals and values. What’s a technology trend you think will dominate PR in the next 5 years? Artificial intelligence is the biggest thing for me. I believe tools like ChatGPT and Bard and things like Microsoft Co-Pilot will increasingly take care of a lot of the repetitive administrative tasks associated with PR and free up human hands and minds to make the most of the thinking faculties and deliver more value when it comes to shaping perceptions and supporting organisations and entities to achieve their goals. I know there is a lot of scepticism around AI and the perceived threat to human jobs but history tells us that the impact of technology is always net-positive. I am old enough to remember the days when everything in PR was paper-based – coverage sheets, press clippings etc. Technology has changed all of that and enabled us to do so much more with collating and analysing information to show the value of our work and plan more effectively. In the same way, I believe strongly that artificial intelligence and other emerging technologies will have a similar impact on our industry. What tools or software are indispensable in your line of work? There are a few tools but I don’t want to give away my secrets. However, two tools that I can definitely mention are WhatsApp and Slack . These two can be so efficient for getting things done Especially in Africa where things can move very quickly (when people want to), WhatsApp and Slack make it significantly easier to keep up with the pace of how things are moving without the formality of emails and other channels.
Read More- November 28 2023
Twiga Foods secures new funding as part of plans to pay over 100 suppliers
Twiga Foods, a platform that connects Kenyan farmers to food vendors, has secured undisclosed funding as part of a business refinancing process just weeks after facing a KES 40 million (USD 261,878.75) debt collection lawsuit from Incentro Africa, a cloud services vendor. Twiga secured the new funding from Creadev, Juven, TLcom Capital Partners, and DOB Equity, four investors that participated in its 2021 $50 million Series C. “We have sent over 100 letters informing suppliers that we have now finalised our restructuring and refinancing and they will finally have their long outstanding dues paid,” said Peter Njonjo, Twiga’s CEO, in a now-deleted Medium post posted two weeks ago. It’s a U-turn from Twiga’s original position disputing Incentro’s debt claim. “The statutory demand is made in bad faith and with ulterior motives,” Twiga said in response to Incentro’s original court filing. It also said that the lawsuit was “unreasonable and motivated by malice.” Despite this, Twiga later confirmed it was in talks with Incentro to settle the debt. During the liquidation proceeding, Twiga argued that its reputation would be harmed, seemingly to discourage similar lawsuits from other suppliers. By late 2022, Twiga had over 140 suppliers.
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- November 28 2023
TechCabal Daily – Nigeria wants to protect people from AI
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning In other news on how Instagram is competing with TikTok, you can now download Instagram Reels from public accounts. Just select the share button at the bottom of your screen, and a download button will pop up if the user has a public account and has enabled it. The download Reels will also have the user’s watermark on it, similar to TikTok’s. So far, it looks like Instagram’s plan to compete with TikTok is working with the app at 2.35 billion monthly users compared to TikTok’s 1.1 billion users. In today’s edition Nigeria joins 17 countries to sign global AI safety agreement Zenith Bank to expand to France OneWeb beats Starlink in South Africa Nomsa Chabeli appointed as SABC’s new CEO The World Wide Web3 Opportunities AI Nigeria joins 17 countries to sign global AI safety agreement Image source: Zikoko Memes Nigeria wants to make AI safe for use. On Sunday, the country joined 18 other countries, including the US and UK to unveil a 20-page document that will be the holy grail of AI safety. The countries agreed that companies developing and implementing AI must ensure that their systems prioritise customer and public safety by preventing misuse. What does the agreement mean? The non-binding agreement deals with questions of how to keep AI technology from being hijacked by hackers, and it includes recommendations such as only releasing models after appropriate security testing. The framework additionally outlines recommendations for safeguarding AI systems against misuse, ensuring data integrity, and implementing rigorous vetting processes for software suppliers. While Nigeria is the only participating African country in the agreement, the move is usual as the country has yet to pass its own AI act into law. The big picture: AI safety and regulation have been a subject of debate globally, with several governments weighing in. AI safety was partly the subject of debate in the OpenAI saga, with people fearing AI was being developed too fast without considering its consequences. The release of language models like GPT-3 sparked concerns about the ability of AI to generate harmful or misleading content. At the same time, the company’s non-transparent research practices raised questions about accountability and oversight. However, developments like this by governments around the world shine a light on the importance of AI and the need to shape its development and ensure safety for everyone involved. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Expansions Zenith Bank to expand to France Image source: Premium Times Zenith Bank is spreading its wings to Europe. The Nigerian commercial bank will set up shop in France in the coming months, according to CEO Ebenezer Onyeagwu. Onyeagwu said the bank had signed a Memorandum of Understanding (MoU) with the French government to initiate the issuance of a banking licence, which will kick-start the bank’s operations in the country. The CEO, however, didn’t say when the licence-issuing process would be complete. Zenith’s move to France mirrors Access Bank, Nigeria’s largest lender by assets, proposed move to Asia in 2024. The big picture: Zenith, which currently has subsidiaries in The Gambia, Ghana, Sierra Leone, the United Kingdom, UAE, and China, joins a host of other Nigerian commercial banks offering cross-border trading to customers on the global stage. Per this TechCabal report, the bank’s goal is to encourage cross-border marketing and position itself as a leader in commercial and retail segments. The bank, with ₦13.38 trillion ($177.06 billion) in customer deposits, witnessed significant growth this year alone. Its financial results for the third quarter of 2023 rose by 149% to ₦505 billion ($6.3 billion). Internet OneWeb launches broadband service in South Africa Image Source: Data Centre Dynamics OneWeb has launched its low-earth orbit (LEO) broadband service in South Africa. Through a partnership between telecom company, Paratus and satellite operator, Eutelsat, the Starlink rival will offer fast and reliable internet in areas with connectivity challenges, benefiting sectors such as healthcare, government, mining, agriculture, tourism, and hospitality. The partnership leverages a 10,000-kilometre fibre network across 10 sub-Saharan African countries, providing customers with connectivity to various data centres in Angola, Namibia, and Zambia, along with connectivity to various subsea cable systems, including Equiano. An advantage over Starlink: OneWeb’s satellites orbit at an altitude of 1,200 kilometres, while Starlink’s satellites orbit at an altitude of 550 kilometres. This means that the signal has to travel a shorter distance to reach the ground, resulting in lower latency. OneWeb has already established ground station connectivity in South Africa, Angola, and Mauritius. Zoom out: Starlink, meanwhile, is yet to secure a licence to operate in South Africa due to non-compliance with the country’s equity ownership rules for ISPs. To meet regulations set by the Independent Communications Authority of South Africa (ICASA), companies must allocate 30% of their equity to historically disadvantaged groups. This mandate necessitates Elon Musk and other shareholders to surrender a considerable stake in the service to be provided in the country, a very unlikely mandate. Checkout the Paystack Changelog Paystack integrated with DebiCheck, to simplify recurring payments in South Africa via debit orders. See what Paystack has been up to in 2023 → Media Nomsa Chabeli appointed as SABC’s new CEO Nomsa Chabeli. Image source: The South African The South African Broadcasting Corporation (SABC) has appointed ex-DStv and MTN executive Nomsa Chabeli as its new Group Chief Executive Officer (GCEO). This follows the departure of the former GCEO, Madoda Mxakwe, from SABC five months ago. Nomsa Chabeli is set to assume the role of CEO starting from March 1, 2024. With more than two decades of experience, Chabeli has played significant roles at MTN, Multichoice, SAB, Brand South Africa, GCIS, and Edcon. Chabeli will take over the organisation which is facing financial challenges, including a significant loss of R1.1 billion ($58.7 million) during its 2022/2023 financial year due to
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- November 27 2023
Understanding IP laws is instrumental for the growth of the creative economy
In the digital age, content creators are the lifeblood of the internet, their creativity driving innovation and contributing to economic growth. However, this dynamic community is often plagued by intellectual property (IP) theft, threatening their livelihoods, and undermining trust within the online ecosystem. Many online creators employ the use of music, videos, and photos from other creators while creating theirs, but there seems to be a lot of learning to do about what counts as intellectual property (IP) and even how to properly interact with other creators’ work and IP. IP is anything that’s born out of intellect and enjoys protection under the law, but that’s not the only requirement for a piece of content to be considered IP. For anything to be considered IP and not just an idea, it has to meet certain criteria: sufficient work has to go into creating it, it has to be an original idea, and it has to be placed in a fixed medium of expression ie as a recorded song, a book, a movie, a logo, or a piece of art. IP Laws under the Nigerian Copyright Act of 2022 According to a report, 97.7% of content creators view music as essential to creating their own content, so it’s safe to only very few creators don’t need to use other people’s work in their content. This is the case for Joshua*, a creator who makes funny videos that live on Instagram and TikTok. “Platforms like TikTok typically flag content that has more than 30 seconds of someone’s music or sound, but 90% of what goes into my videos is my own content. I often tag and credit the creators if they’re not very popular,” he says. However, adding credit isn’t sufficient because each piece of content that counts as IP is considered an asset and can be monetised. This means that proper attribution goes beyond just giving credit to the original creator; it has to be done a certain way for it to be right and complete. This means that to use someone else’s IP, you have to reach out to them, give them sufficient information on what the piece of content is to be used for and seek their consent. Otherwise, the piece of content is being devalued, and the original owner might be losing money, whether they know it or not. Of course, like many things, there are a few exceptions to the rule, according to Grace Abubakar, an IP and tech practice lawyer at DLA Piper, “There are exceptions, and we call them fair use. There are times when it’s permissible to use a creator’s work without getting permission from them, and these include for educational purposes or parody/satire. Commercialisation is completely out of the question, so it’s always a good idea to reach out to ask for consent,” she told TechCabal. What actually constitutes IP infringement? According to the Nigerian Copyright Act of 2022, any use or copying of images, music/sound or other forms of IP without permission or consent, especially for commercial purposes, counts as infringement. In such cases, the original owner has the right to seek legal remedies. These typically start with issuing a notice to the infringer, notifying them to take down the piece of content, and in the case where this doesn’t work, issuing a cease and desist. If, after the cease-and-desist, they don’t comply, the court can grant injunctions that legally bind the other party to remove or delete the content or be held in contempt of court or face legal ramifications. Caleb Nmeribe, another associate at DLA Piper, expands more on these rights “There are safeguards under this law that are meant to protect creators from infringement. You have the moral right to safeguard your work from (commercial) exploitation, the right to be attributed and associated with your work, and the right for people to seek consent for the use of your work,” he explains. Other IPs include trademarks, patented designs etc. The owners of these IPs can sue for the use of their property if infringement is discovered. Creators need to be aware of what counts as intellectual property, how it can be monetised, how to protect their IP assets, and how to properly interact with other creators’ assets as well. The Data Protection Act helps to protect creators from infringement and devaluation of their works: people can ask for their work to be taken down, and even repeat offenders could have their accounts taken down. Content creation is a business for many, and for businesses to grow and work, they have to be built on the right structures, which include integrity and the right moral code of ethics. For the creator economy to grow and thrive as much as we want and expect it to, being completely aware of what counts as IP infringement is the best way to work properly with other creators and not stand in the way of them getting their coins.
Read More- November 27 2023
Zenith Bank eyes France expansion, joining other Nigerian banks on global stage
Zenith Bank, a Nigerian tier-1 bank, wants to expand to France as it looks beyond Africa. Zenith Bank, one of Nigeria’s largest banks with ₦13.38 trillion in customer deposits, wants to expand to France, joining the likes of First Bank, UBA and Access Bank which are expanding to other continents. Ebenezer Onyeagwu, Group Managing Director/CEO of Zenith Bank Plc, disclosed at the Chartered Institute of Bankers annual dinner held on Friday evening at Eko Hotels, in Lagos. “This afternoon, we signed a Memorandum of Understanding (MoU) with the government of France to signal the commencement of the issuance of a banking licence to Zenith to commence operations in France,” Onyeagwu said, beaming with a smile. The Zenith Bank CEO was light on the details about when the approvals and regulation of the France subsidiary will be completed. Zenith Bank’s playbook is thus similar to Access Bank’s move to expand into Asia early in 2024, as previously reported by TechCabal. The regulatory approval, if granted, would enable the bank to serve customers in the region that is the largest non-African trading partner. A move like this would be synonymous with South Africa’s Standard Bank Group and TymeBank expansion into Asia, bolstering Access Bank’s assets under management, currently at $26.5 billion. Zenith Bank currently has subsidiaries in The Gambia, Ghana, Sierra Leone, the United Kingdom, UAE, and China with its parent company in Nigeria. Its external goal is to encourage cross-border marketing and position the bank as a leader in commercial and retail segments. Its lending business across its subsidiaries is directed towards international and export trade transactions. Earlier this year, the bank signed an MoU with the African Continental Free Trade Area (AfCFTA), committing $1 million to the SMARTAfCFTA portal, an initiative of the bank to digitalise trade. Zenith Bank’s unaudited third-quarter financial results rose 149% to ₦505 billion.
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- November 27 2023
USSD codes for GTB, FCMB, UBA, and Fidelity Bank
To make your financial transactions smoother, Nigerian banks offer USSD codes that allow you to perform various banking tasks from your mobile phone without the need for an internet connection or mobile app. In this article, we’ll explore the USSD codes for four leading Nigerian banks: GTB, FCMB, UBA, and Fidelity Bank. GTB USSD codes (Guaranty Trust Bank) GT Bank is renowned for its customer-centric approach. With GT Bank’s USSD codes that regenerate from *737#, you can: Check your account balance: Dial *737*6*1# and follow the prompts. Transfer funds: Send money to other GT Bank accounts by dialling *737*1*Amount*Recipient’s Account Number#. Recharge your phone: Top up your mobile phone with airtime by dialling *737*Amount#. Bill payments: Pay utility bills and subscriptions using *737*50*Amount*Unique Reference Number#. Open an account: If you’re new to GT Bank, dial *737*0# to open an account. FCMB (First City Monument Bank) FCMB offers a range of USSD services from the root code *329#. Such include: Check account balance: Dial *329*0# to see your account balance. Transfer money: To send funds, dial *329*Amount*Recipient’s Account Number#. Airtime top-up: Recharge your mobile phone with *329*Amount#. Bill payments: Use *329*Amount*Merchant Code# to pay bills. UBA (United Bank for Africa) UBA’s USSD codes are drawn from *919#, and they can make your banking a breeze: Account balance: Dial *919*00# to check your balance. Fund transfer: To transfer money, use *919*Amount*Recipient’s Account Number#. Airtime purchase: Recharge your phone with *919*Amount#. Bill payments: Pay bills with *919*30*Biller Code*Amount#. Fidelity Bank Fidelity Bank’s USSD services, from the base code *770#, simplify banking tasks: Account balance: Dial *770*0# to get your balance. Transfer money: Send funds by dialling *770*Recipient’s Account Number*Amount#. Airtime recharge: Top up your phone with *770*Amount#. Bill payments: Pay bills with *770*Merchant Code*Amount#. Final thoughts on GTB, FCMB, UBA, and Fidelity Bank USSD codes In a digital age where time is of the essence, these USSD codes are your key to unlocking the world of banking convenience.
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- November 27 2023
Next Wave: Venture capital is undergoing a reset but no one is changing
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 26 November 2023 I’m wondering what is changing about how VCs, founders and startup stakeholders (employees and consultants alike) think about how to operate in Africa. No plaititudes. No cached sentences. Most of the money that goes into venture capital investments in African startups comes from sources outside Africa. If anything is happening to those investors, it affects the capital African companies get. Especially as the continent’s local pool of private and public capital remains severely stunted. Thus, if there is a reset in the practices of firms that channel money into African startups either as venture capitalists (VCs) or as limited partners (LPs), the effect will trickle down to the continent. It’s a no-brainer. And things are happening. “Fifty-six percent of European VCs haven’t returned capital to their LPs in the last 12 months,” Amy Lewin of Sifted reported almost two weeks ago. In the United States, the story is similar: “Pressure from LPs is poised to intensify while funding for VC firms remains in the pits,” The Information’s Kate Clark wrote recently. The meaning of this is simple. Investors of all stripes evaluate macro-risk (the overall state of the economy) when they choose to make investments. Africa’s overall economic landscape is challenging enough as it is. However, the deteriorating state of major and mid-size economies outside of Africa is an additional but second-hand macro-risk which investors have to pre-consider before even allocating capital to opportunities in Africa. By the way, this is not only affecting venture capital or tech. Take China for example. The Asian giant and second-largest economy in the world has seen a steep crash in the amount of foreign investment that it receives. The real estate sector is under immense pressure and local banks are vulnerable—a consequence of years of poor risk management and assumptions. On the other side of the coin, official loans from the Chinese government to African countries have dropped by more than 87% from their peak in 2016. Globally, China’s Belt and Road Initiative is losing steam. And this is despite an expansion in the BRICS+ group of countries. Source: Reuters Partner Content: All eyes on the Africa’s Business Heroes fifth anniversary and grand finale: Why you should attend Text ad end–> This is just one oversimplified example of how the macro-risk Africa faces is not only African. Today, the macro-risk calculus is first a discount of the tradeoffs between American, European and Asian risk, even before African risk is modelled. Africa’s n-body problem In classical physics, the n-body problem is the problem of predicting the effect the gravitation fields of individual celestial objects like moons, stars and planets have on each other as they move in orbit. Understanding the n-body problem helps astronomers understand how the earth-sun-moon system works. In general, it’s a useful mental model to think about how complex bodies affect each other. One important characteristic of this physics phenomenon is that it is a problem that cannot be solved by analysis because it is constantly changing. The world of business is the same. The factors, especially in this day and age, are constantly in motion. Africa’s n-body problem is something that investors have dealt with for a long time without recognising it as such. It is the complex interplay between a low-depth private and public capital market, capital from foreign partners or development agencies with missions that are not always aligned, and a base of startups or deal-flow that are often created to follow trending narratives rather than create outlier value. All the above sit on precarious economic situationships that are themselves another type of an n-body problem. The first part of this essay discusses how the economics of Africa are further complicated by dependence on global economics. But in late 2020, and up to the first few months of the third quarter of 2022, Africa’s investors seemed to have found stability in the quick pace of markups and flowing cash. That stability is long gone today, but I see little sense of urgency to get ahead of the curve. I am yet to find attempts to define and find another centre of gravity. Everyone seems to hope that with the turn of New Year’s Eve, things will begin to get better, i.e. return to 2021. But that is a mistake. Article continues after this ad Join us at the #BluechipDataandAISummit: Building an Effective Data and AI Solution. Shape the future of your business and industry with data-driven intelligence, innovative solutions and sustainable growth. Secure your seat today “It is not necessary to change. [Only because] survival is not mandatory” If seed-stage investors and founders created wealth and returned capital because big funds from the US and Europe bought a stake in their companies, how would they create wealth or return capital today when the big money is in retreat? If LPs are punishing VCs who mindlessly played the pass-the-burnt-potatoes game in 2021, what lessons are the investors learning? If we played the power law to its breaking point, where do we start to pick up the pieces? And lastly, as Dan Gray of Equidam asks, “If there’s an impending cull of early-stage VCs, which group will survive? The actual performers, or the best networked?” Last week, I wrote: “If the venture capital story is not working then maybe investors in Africa need to create something new. If however the philosophies that underpin venture capital are intrinsically undamaged, then we ought to look elsewhere to find the mismatch in expectations.” “Things change and evolve,” Morgan Housel, founder of Collab Fund, wrote last week, “so the phrase ‘this is how we’ve always done it’ should
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- November 27 2023
TechCabal Daily – Patricia nabs Nigerian politician for $760,000 theft
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy salary week X is bringing back headlines less than two months after Chief Twit Elon Musk removed them to “greatly improve aesthetics”. Last week, Musk announced that headlines will come back to X soon. This time though, the headlines will be in the top of the link preview instead of the bottom. Musk didn’t say why the previews are coming back, but it could have something to do with this intelligible tweet he made about OpenAI. Chief Twit Elon Musk is steadily showing us that CEOs make mistakes too, and regularly—like you on an impromptu Meet call—don’t know what they’re talking about either. In today’s edition Patricia nabs Nigerian politician for $760,000 theft Quick Fire with Bemi Idowu Here’s Nigeria’s apex bank plans to solve inflation Egypt to kick-start e-KYC in 2024 Fawry concludes security checks The World Wide Web3 Opportunities Cybercrime Patricia nabs Nigerian politician for $760,000 theft GIF source: Tenor Four days after its repayment plan was due to start, fintech Patricia identified a Nigerian politician, William Bonse, as a culprit in its 2022 $2 million hack. According to the Nigerian Police Force (NPF), Bonse, who was a gubernatorial candidate in Nigeria’s 2023 elections, reportedly diverted ₦607 million ($760,000) from the fintech’s account into his through a cryptocurrency wallet. Bonse, who is allegedly working with others, had been apprehended by the police who say the politician has “registered his involvement” in the hack. ICYMI: In May, Patricia was revealed to have suffered a hack in 2022 which cost it $2 million in customer funds. The hack led to several customers being unable to withdraw funds. Since then, Patricia has tried several measures to reassure customers including relaunching its app, offering to turn customer assets into a new Patricia Token, raising funds to repay customers, and even offering customers shares in exchange for their stuck funds. While, in a May disclosure, the company said it had pinpointed a single culprit, it declined to disclose any details regarding the individual. Bonsu is likely the culprit in this scenario. Have the funds been recovered? That’s not clear yet. In a press release, CEO Hanu Fejiro said recovery of the amount, while incomplete, would “go a long way to soothe Patricia users.” So far, the company claims it began refunding customers on November 20 as planned, but several customers have declined receiving any payment. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Features Quick Fire with Bemi Idowu Olugbeminiyi Idowu is the founder and managing director of Talking Drum Communications, a public relations and communications consultancy that supports companies innovating in Africa to shape perceptions and get more effective publicity for the work they are doing. He is an African Tech PR specialist, with extensive experience in leading and delivering successful media campaigns for a wide range of companies – from established global players to Africa-focussed start-ups. Olugbeminiyi Idowu What drew you to tech PR specifically? I’ve always been interested in seemingly complex things and the challenge of communicating the value of these things in a clear and meaningful way and this is a skillset that lends itself well to working in technology PR. My technology PR journey started with semiconductors, micro-components and data centres and it was only later that I started working on Software as a Service products and then startups. How do PR strategies differ for global players versus Africa-focused start-ups? PR at its core is basically the same everywhere. It is all about sharing and managing information to shape the perception of an entity. What differs is what the entity is trying to achieve and the context they are operating. For example, a health tech startup in Europe will typically be trying to tell a very different story from one operating in Africa and success will most likely look different. Our job is to understand what success looks like and do what we can to support our clients in making it happen. One major issue that impacts how PR is done in Africa is the depth of media platforms we currently have. For example, the African tech media landscape is still relatively young and everything falls under the “tech” umbrella. In other parts of the world, you get to work with specialist publications that focus entirely on Information Technology, security, fintech etc. This means you get to tell deeper stories and explore a wider range of narratives for campaigns. What’s the most challenging aspect of your job? I can be quite impatient so this means I am always in a hurry. Dealing with people who don’t have the same sense of urgency can be very frustrating. How do you measure the success of a media campaign? At Talking Drum, we are very particular about understanding what our clients are hoping to achieve with PR and being clear about whether or not PR is the most effective way to achieve that goal. For example, we get some clients talking about using a press release to reach a download target for their app. I’m always quick to say PR can support that goal but it may not be the most effective. We typically see the most impact and ROI from our work when it comes to attracting talent, securing investment, establishing a narrative, brand leadership and stuff like that. These are all results that you can effectively measure and directly link to public relations activities. What’s a common misconception about tech PR? The biggest misconception is that it is just about distributing press releases. I understand where this comes from as press releases are an essential tool in the PR tool kit but there is so much more. There are so many strategies and storytelling tactics that come with PR, as well as different services that a PR professional or business can offer to
Read More- November 25 2023
USSD remains Africa’s most popular payment channel despite growing alternatives
Despite the growth of many payment channels such as apps and QR codes, Africans continue to use USSD more for making payments across banking and mobile money products. USSD-based transactions were used for mobile money and cross-domain transactions due to their straightforward and user-friendly interface that does not require a smartphone or internet connectivity. These USSD channels, which contributed 70% of instant payment channels as of June 2023, have been key in facilitating transactions that go beyond traditional mobile money services, including transactions between different financial institutions. In Ghana and Kenya, mobile money systems, particularly those using offline channels like USSD, are popular and supported by customers over card-based systems. This strong preference aligns with the percentage of people with mobile money accounts at 60% in Ghana and 69% in Kenya. However, while USSD is popular, it has been cited as a barrier to ease of use in payments. “Complex USSD menus and failed transactions are particularly detrimental to use,” said AfricaNenda, a digital payment strategy organisation in its inclusive instant payment systems (IIPS) report. Cross-domain instant payment systems facilitate interoperability between banks and non-banks, enabling transactions across both bank and mobile money accounts. While app channels follow USSD in terms of popularity, they introduce friction points like access to smartphones and internet connectivity, the adoption of which stands at 51% and 43.2% respectively. There is a growing acceptance of quick response (QR) codes as another channel. Cross-domain and bank IPS offer the broadest array of channels, whereas mobile money instant payments typically favour agent, USSD, and app channels. According to AfricanNenda, which released an instant payments systems (IPS) report in November 2023, this diversity shows the evolving financial services ecosystem in Africa. Per AfricaNenda, electronic money (e-money) instruments are also popular, with widespread support from mobile money and cross-domain instant payment systems. Cross-domain systems also use commercial money instruments like credit and debit electronic funds transfer (EFT), while bank IPS focus on credit EFT, with debit EFT as a secondary instrument. This diversity underscores the varied payment methods in use across different payment systems. “For an IPS to be a cross-domain system, it must have a switching capacity between commercial money instruments (such as debit electronic funds transfer (EFT), credit EFT, and domestic card instruments) and e-money instruments. Operators use one of two approaches to achieve a cross-domain IPS,” said AfricaNenda in the report. IIPS is important because the demand for instant digital payments is growing. In 2021, 50% of Sub-Saharan African adults used digital payments, up from 34% in 2017.
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