Seven months after its launch, CBN’s fintech sandbox has made no real progress
Months after the Central Bank launched a fintech sandbox, there’s no word on when the first cohort of applicants will begin testing. CBN and its infrastructure provider EMTECH did not comment on the status of the programme. Last year, the Central Bank of Nigeria launched its first fintech regulatory sandbox. In this controlled environment, fintech innovators could live test their technology under observation by the regulator and with minimal risk to users. The sandbox is designed to admit participants in cohorts every year; five months after the programme was supposed to kick off, its status remains unknown. Significant structural changes within the CBN have compounded the uncertainty. In May, Godwin Emefiele was suspended as CBN governor, and two weeks ago, Bloomberg reported that President Tinubu had hired an investigator to look into some of the bank’s activities. The fintech sandbox was opened to licenced and unlicensed individuals and organisations who wanted to test their finance innovations. Seven months after applications kicked off in December 2022, the CBN has not published the names of those admitted into the first cohort of the sandbox. Applicants are also unaware of the status of the programme. AbdulAfeez Oguntoyinbo, the founder of a finance management platform Esusu Africa told TechCabal, “[Months ago,] the CBN informed us that we made it to the final stage, but we have not heard from them since then.” His startup, which is focused on financial inclusion in underserved areas, is especially looking forward to learning how to incorporate the enaira in the operations of some of the micro financial service providers it supports. Esusu also has a growing credit scores database of people in the informal sector. It plans to use the APIs in the sandbox to refine its database and test the different ways banks and other credit providers can implement it. Digital lending platform Indicina which also advanced to the final stage of the application process, told TechCabal that it is yet to receive news of the CBN’s final decision. Yvonne Johnson, the founder, emailed TechCabal that it plans to test a new product in the sandbox. It is most likely nothing is happening Iyin Aboyeji, the founder of VC firm Future Africa, told TechCabal, “If you aren’t hearing anything about it, it most likely means nothing is happening.“ In 2020, the CBN published draft regulations for sandbox operations in Nigeria. This was a year after the CBN and the Nigerian Bank Settlement Scheme (NIBSS) backed a community of fintech enthusiasts, the Financial Services Innovators (FSI), to launch the Nigerian Industry Innovation Sandbox. The sandbox is called the FSI-Sandbox. The CBN left the board of the FSI-Sandbox in 2020, as it was working on its sandbox and wanted to avoid a conflict of interest.” The FSI-Sandbox started as an environment for startups to test and develop their innovations and speed up their launch into the market. But, over time, it has evolved into an incubator, incentivising and supporting innovators, including students in university, with cash and non-monetary resources to create or scale their payment solutions. Esusu Africa, one of the CBN’s new sandbox applicants, was also a participant in the FSI-Sandbox. In contrast to the FSI-Sandbox, the CBN’s fintech sandbox has a different approach. It exclusively accepts fully developed and self-funded solutions, providing no financial assistance to participants. Also, the primary focus of the CBN’s sandbox is to safeguard the public from potential harmful actors and protect the market from undesirable competition. This sandbox offers a unique opportunity for both licensed and unlicensed fintech innovators to test their products, services, or business in a live environment, even without fulfilling all the usual regulatory requirements. This flexibility is particularly beneficial in Nigeria, where navigating complex regulations can be challenging, especially for new technology startups. However, it’s important to note that the CBN retains the right to prohibit the deployment of any product, service, or solution in the market if it identifies any reason for concern during the sandbox testing phase. This precaution ensures that only safe and reliable fintech solutions reach the public domain. Regulatory sandboxes like this commonly rely on web applications to streamline their operations, and Nigerian startup EMTECH developed the infrastructure for Nigeria’s sandbox. Through EMTECH’s technology, participants gain access to the Central Bank of Nigeria’s APIs, and the CBN can conduct regulatory reviews, compliance processes, and real-time risk monitoring digitally. Despite EMTECH’s involvement, Carmelle Cadet, the founder and CEO, has refrained from disclosing information about the sandbox participants or the progress made. Instead, she directed inquiries to the CBN. However, TechCabal’s attempts to seek clarification from the CBN regarding the fintech regulatory sandbox’s status and developments have gone unanswered.
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Here’s how AI can help journalists and protect news readers from misinformation
While AI is sometimes employed for deception and widespread misinformation, it offers the potential to enhance storytelling for journalists and transform how readers consume news. On March 25, an AI-generated image of Pope Francis wearing an oversized white puffer jacket made the internet’s collective head spin. It made the rounds on social media millions of times as some online communities debated the authenticity of the picture, while others questioned the sanctity of the Vatican. A pope in a puffer jacket was a bridge too far for AI, it seemed. The picture, captioned “Pope Drip”, raised serious concerns about the worrying advancements in AI and the very real potential for deception, widespread misinformation, and worse, replacement of working professionals. “Unfortunately, we are witnessing a rise in manipulated content, including deepfakes, audio fakes, and fake images, which can be used for various purposes. While automated AI tools like ChatGPT assist many journalists, there is still widespread abuse by content creators,” said Silas Jonathan, a lead researcher at Dubawa—a fact-check organisation. Jonathan has warned that AI-generated misinformation could spread uncontrollably—risking time and money in the fight against it. AI-Generated Image of Pope Francis generated much buzz on the internet With the rise of any technology, challenges follow, and AI is no different. Despite the formidable spread of AI-generated misinformation, Adrian Ephraim, Editor-in-Chief of TechCabal, believes that AI is not the problem. It’s just a tool. “People’s intentions are the problem, and if there are enough people who want to create untruths and deceive people, it’s easier for them now,” he said. “We as media and news audiences need to value truth and place a premium on it—by supporting media outlets that have proved their credibility through their work and the presentation of indisputable facts.” Jonathan shares the same view. He believes that despite the advancements in AI technology, people tend to gravitate towards sources that align with their existing beliefs and perspectives. “When it comes to trust in news, audience choices regarding what and where to read are often influenced by their confirmation biases, regardless of the role of AI,” he said. “This human tendency to seek out information that confirms preconceived notions can persist even in the presence of AI-driven recommendations or fact-checking tools.” Readers have a role to play in combating misinformation To curb misinformation, Jonathan believes it is up to news readers to select dependable news sources. “While there is no doubt that AI can limit the quality and accuracy of news, it may not entirely supersede the impact of confirmation biases on audience reading preferences,” he said. Ephraim believes it is the responsibility of the media and the audience to protect the integrity of the news. “The media has to be on guard all the time to assess, evaluate and question everything. Our senses as journalists need to be heightened and aware of all the possibilities. Seeking truth has never been more important than it is now,” he said. “But the good news is that we have better tools to do better journalism, find deeper truths and search for more answers.” For Tshepo Tshabalala, manager and team lead of JournalismAI at the London School of Economics and Political Science (LSE), the solution to curbing misinformation will not be found overnight. “Technology is changing fast, and newsrooms will need to adapt and keep up with this changing technology and find ways of combating fake news and misinformation. The solutions will not be found overnight,” he told TechCabal. AI offers perks to readers and journalists alike While news readers might be wary of AI contributing to misinformation, fake news and wrong data usage, AI also offers readers and journalists new advantages. According to experts, AI will enhance the way journalists do their job, and improve the way audiences consume news and protect them from misinformation. “For busy individuals who do not have the time to read full reports, AI can assist in summarising and extracting key information from lengthy articles, saving readers time and allowing them to consume more information in a shorter period,” says Jonathan. He also believes AI-powered recommendation systems can personalise content based on individual preferences, delivering more relevant and engaging articles to readers. This helps them discover new topics of interest and encourages them to explore a wider range of content. At the peak of the Ukraine-Russia war in 2022, Finnish public broadcaster Yle which previously published news in Finnish, Swedish, English, and Russian, used AI to translate its articles to serve the Ukrainian audience. Similarly, the Guardian and Agence France-Presse (AFP) collaborated on an AI tool that could accurately extract quotes from news articles and match them with the right source. The future of AI in African newsrooms Google recently unveiled a new AI tool for writing news articles. The product, pitched as a helpmate for journalists, represents a way forward for incorporating AI into newsrooms. But Tshabalala believes it’s still early days for the adoption of AI in newsrooms. “We [JournalismAI] are currently working on a global survey on how newsrooms across the world are leveraging the power of AI, and there’s a huge focus on newsrooms across Africa. We hope the insights in this report will hint at what the future looks like for AI in African newsrooms,” he added. Ephraim believes AI is going to play a collaborative role with African newsrooms. “Many newsrooms in Africa are under-resourced and incapable of telling all the stories they want to. I see AI playing a collaborative part with African newsrooms to fill the gaps and support newsrooms. AI tools may help African newsrooms confront some of their challenges, like technical skills shortages, access to data, and training,” he concluded.
Read MoreTanzania ignores digital IDs as East Africa pushes for wider adoption
Most East African countries are on a path to adopting digital IDs. While others express mixed reactions about the readiness for the documents, others have yet to start conversations about biometric identification. KYC processes are crucial in preventing fraud, money laundering, and ensuring compliance with local and international regulations. However, the requirements and implementations vary across African countries due to varying regulatory frameworks and technological infrastructures. Besides, Africa’s digital economy is growing fast, with a population of 1.4 billion. But according to the World Bank, around 500 million Africans still lack proper identification documents as of 2020. This highlights the importance of identity verification solutions in closing the identity gap and supporting Africa’s digital economy. Tanzania is okay with traditional IDs Tanzania is the only country in the East African region that has yet to make any notable development toward adopting digital IDs. However, the nation’s ICT regulator has since directed that SIM card registration include biometric identification. Tanzania’s sim card registration process involves biometric verification to ensure the authenticity of mobile phone users. The registration process is overseen by the Tanzania Communications Regulatory Authority (TCRA), which issued a directive in 2019 requiring all citizens to register their sim cards with their national identification documents. The registration process requires individuals to provide their fingerprints and other biometric data, which are cross-checked against the information on their national ID cards. This biometric verification aims to prevent fraudulent activities and enhance security in the telecommunications sector. In February 2023, the Tanzanian government deactivated 970,000 irregularly registered SIM cards to curb fraud. This action followed the TCRA’s directive for citizens to register their sim cards biometrically. Smile Identity’s report clarifies that the campaign achieved significant success, with 60.47 million out of 62 million mobile users registering before the deadline and a notable drop in sim card fraud cases. Kenya carried a similar campaign for the better part of 2022. Kenya’s second attempt at digital IDs Kenya, on the other hand, is set to fully embrace digital identity for its citizens. Some details have been revealed about its upcoming digital ID system. Set to launch in September 2023, the unique personal identifiers (UPI) system comes with advanced security features like iris and facial biometrics and fingerprint identification, similar to the existing identity documents. The new digital ID was first announced by Kenya’s ICT cabinet secretary Eliud Owalo, who clarified that the IDs would be official in a month. The new IDs will replace the failed Huduma Namba launched by the previous administration in 2018. Read more: Kenya discontinues Huduma Namba, takes another try at digital identities The new ID system aims to offer improved online ID authentication possibilities while giving Kenyans more control over sharing their data. Does this imply that Kenyans will not be compelled to adopt the new ID? According to Owalo, the IDs will not be mandatory. However, it should be remembered that the state said the same thing about Huduma Namba. Still, citizens were made to obtain the document because they were told they couldn’t access government services without it. Uganda isn’t too sure about digital IDs In May 2023, Uganda’s national identification and registration authority (NIRA) revealed that they had issued citizens more than 26 million National Identification Numbers (NINs). According to Smile Identity, an identity verification platform, this represents over 95% of the adult population coverage within nine years of initiating the ID program. While NIN’s coverage is extensive, many Ugandans still do not possess physical ID documents. NIRA said they printed over 19 million national ID cards, but only 16 million have been collected, leaving over three million cards unclaimed. The agency has urged registered Ugandans to collect their cards before transitioning to a digital ID system. The same issue was observed in Kenya when over 2.9 million Huduma Namba cards remained uncollected as Kenyans protested the document’s existence. In April 2023, Uganda’s auditor general, John Muwanga, expressed concerns about the country’s readiness for transitioning to new digital ID cards. The cards will have citizens’ electronic and biometric data via implanted microchips, and the transition is set to start in 2024. NIRA stated they are in advanced planning stages and have enough time to prepare. Ethiopia wants digital IDs for financial transactions In 2022, Ethiopia’s national identity program (NDIP) initiated the Fayda ID enrollment, with over 1.4 million Ethiopians already enrolled. Then in March 2023, the country approved a crucial Digital Identity Proclamation bill, paving the way for a modernised ID system and potential national development. The national bank of Ethiopia and the national identity program recently announced plans to make the national digital ID, Fayda, mandatory for all transactions. According to Smile Identity’s report, with approximately 23.7 million people having bank accounts, the Tanzanian government’s initiative aims to make the Fayda ID mandatory for bank customers. This requirement is for conducting KYC checks and remote onboarding, intending to reach 45 million enrollments by 2024. The move is expected to enhance transparency and security in Ethiopia’s financial sector. Rwanda’s approach is unique Rwanda’s approach to digital IDs takes a different approach that seeks to be all-inclusive. According to the report, the Rwandan parliament is working on a more inclusive ID system to cover children and stateless people. The proposed amendment allows the Rwanda Single Digital System (SDID), funded by the World Bank, to close gaps in the existing ID architecture within 3 years. SDID aims to address gaps and improve efficiency in Rwanda’s existing ID architecture by incorporating different identification data sources, such as biometric information, demographic details, and other relevant data. Tanzania’s hope for personal data protection Tanzania has not disclosed the reasons behind its delay in adopting digital IDs as neighbouring countries continue introducing them as standard documents. One could argue that digital IDs store extensive personal information, such as name, date of birth, address, and other identifying details, making them susceptible to data privacy concerns. Nevertheless, Tanzania has taken a step forward by enacting the Personal Data Protection Act in 2022, establishing essential
Read MoreBuilding the future of financial services
Moonshot by TechCabal is the conference that brings together Africa’s tech ecosystem in person to network, collaborate, share insights and celebrate innovation. Join us in Lagos on October 11 and 12. In this second article built around the conference, Abraham Augustine offers suggestions for designing a future for the financial services sector that is defined by government and private sector collaboration to create shared prosperity and thriving economies. What the future of financial services will look like depends on who you are talking to. Crypto advocates believe in a future where financial services are decentralised and both real-world assets and virtual assets are tokenised. Governments around the world seem to be coming to a consensus that the future of money is programmable central bank digital currencies that can rival crypto stablecoin dreams. And in the development sector, financial inclusion advocates affirm little more than simply providing access to digital wallets. No programme embodies the development sector focus on digital wallets as the future of financial services like the Better than Cash Alliance of the United Nations. And they have a point. Financial services is a broad range that includes banking, insurance and investing. The unspoken consensus is that the form in which these will be delivered will be digital. That helps us narrow it down to one overarching theme. Which is that the future of financial services is mostly digital. Digital technology has a strong presence in the back offices of the financial services sector. Banks are run on software architecture that help them manage customer and account information. Bond, equity and commodity investors all over the world rely on software to execute trades. Insurers are beginning to store massive amounts of customer information in large databases. And you pay for groceries or a Spotify subscription with your credit/debit card or digital wallet. Despite what seems like peak digitalisation, there is still a lot of room for change and growth. Even in developed economies. For example, despite the significant digitisation of its financial sector, the United States only recently launched its real-time payments (RTP) network. Almost 20 years after its southern neighbour, Mexico launched a national RTP in 2004. RTPs change what a bank transfer means—from a days-long process to a near-instantaneous activity. Clearly, the future of financial services is not only digital; it is how progress in basic areas such as faster payments will change how the everyday person interacts with the remaining pillars of financial services. With the financial services sector receiving or managing trillions of dollars in investments, transactions and system failures every day. These changes will impact: How people and businesses save and borrow. How people and businesses invest in capital markets. How people and businesses get insurance protection. And how people and businesses raise capital. Some of this is already happening. Especially in more developed countries. But in the African context, we have not made much progress beyond how digital technology has changed how people receive payments or pay for services or products. And there is a history behind this. From microfinance to digital financial inclusion From the late 1990s to the first decade of the 2000s, microfinance banking dominated the approach towards increasing participation in formal financial services. Especially in developing and low-income parts of the world. Propelled by the advocacy and example of Pakistani economist, banker and Nobel prize winner, Muhammad Yunus, development banks supported the micro-finance model as a pathway to increasing formal financial access. As big money flowed into the nascent industry, mixed results trickled out. Small successes were hailed as exemplary, social costs like increased indebtedness were downplayed, and massive profits were collected. Digital financial inclusion is an outgrowth of this era, as innovations such as M-Pesa caught on. Mobile technology and better access to the internet promised to help scale access to financial services. As a result, increasing the number of formal financial accounts mainly through digital payment wallets became a priority for the development industry. And ultimately the priority of private sector investors and entrepreneurs. From financial inclusion to financial health Unfortunately, contrary to popular narrative, access to one form of financial services that mainly sought to replace cash with digital options, has not created consistently positive upliftment. “Since 2010, financial inclusion has been a great focus for our community. Today, however, I would like to make the argument that it is time to move on from financial inclusion because it has not fulfilled its promise of helping the poor make their way out of poverty,” Iyin Aboyegi who co-founded one of Africa’s most valued payments company and has invested in several more, said at the Inclusive Fintech Forum. A lot more people now agree that Africa needs to move beyond the singular focus on payments which is only one pillar in the financial services sphere. Financial inclusion advocacy institutions, like Financial Sector Deepening Africa (FSD Africa), now use indicators that measure financial health instead of only financial access. What financial health looks like This new focus on financial health (a measure of a person’s financial soundness and economic well-being) can become the standard around which the future of financial services is built. For the payments layer, a focus on financial health will compel governments, the development industry and private companies to evolve their policies and products. Simple access models with poorly aligned incentives will be replaced by payment products that focus on facilitating commerce. And the government’s rentier taxation of digital payments will be eliminated. Instead of focusing on how many people are given loans, the future of digital financial services will see entrepreneurs using technology in line with government policy to extend credit in a way that supports an inclusive economic agenda. This will mean an increased use of data to monitor and measure progress towards economic well being. As a result, Africa’s data industry, as well as data protection standards, will need to evolve from where it is today. By the same token, poorly thought-out economic policies that disincentivise financial institutions from extending credit
Read MoreThe Future is Female Mentorship Program announces 20 finalists for its fourth edition
PR is crucial to the overall growth and development of any startup, and no one understands this better than Claudine Moore. Moore is a PR and communications expert with over 13 years of experience helping startups navigate media relations and shape public perceptions. In Africa, female entrepreneurs receive less funding and visibility than their male counterparts which has affected their ability to scale. This spurred Moore to create a mentorship program, The Future is Female Mentorship Program, that showed women how to gain visibility for their startups and position themselves for funding opportunities. For the fourth edition of the program this year, 20 African female-led tech startups listed below have been selected out of 490 applicants from 37 countries across Africa. During the selection process led by judges; Enki Toto, Femi Agboola, and Michelle Agbodohu, special consideration was given to startups focusing on areas like health, education, finance, agriculture, and sustainability. Startups that provide solutions and/or address African women’s and girls’ needs also received special consideration. The 2023 edition has been supported by Google for Startups Accelerator: Women Founders Africa Program, Salesforce Ventures Impact Fund and F6S expanding the scale and reach of the initiative. Here’s the complete list of all founders selected from across the continent. EGYPT Mai Shakweer, Founder of AutoMechanic, which connects car owners in Cairo with local mechanic services and workshops. KENYA Juliet (Shiro) Njoroge, founder of Mosmos Africa, a Save Now Buy Later (SNBL) platform, enabling Kenyans to save-to-buy conveniently with the Mosmos app. Celeste Tchetgen Vogel, founder of e-Waka Mobility, a full-service platform for businesses to make cheaper, eco-friendly deliveries with tried and tested electric bikes. Natasha Makindu, founder of Paydel, a social commerce fulfilment platform that aggregates logistics services on demand. Fridah Karani, founder of Hela Money, a next-generation trade platform bridging traditional and digital finance enabling businesses to build for the future. Jackie Kamau, founder of The Laundry Lady, an on-demand laundry, dry cleaning service offering convenient pick-up, wash and delivery, with a focus on high-quality service at affordable rates. Elizabeth Nduta, founder of Gwiji, a startup that empowers low-income Kenyan women with training and flexible employment. NIGERIA Al Hassan Keita, founder of EtioneraPay, an escrow payment gateway built for online and e-commerce users, processing payment and enabling payment for users. Jennifer Echenim, founder of Bloccpay, a crypto-powered payroll solution for global businesses and talents. Gold Sylvester, founder of Traddify, a global remittance platform that allows individuals and businesses to make cross-border payments seamlessly and instantly. Ngozi Nwabueze, founder of PocketLawyers, a Nigerian legal tech startup that offers access to affordable premium legal services and solutions to SMEs and startups. Sarah Odiavbara, founder of Craftmerce, a B2B e-commerce marketplace for African handcrafted enterprises. Olawunmi Akalusi, founder of Rísé NG, a digital platform that seamlessly connects artisans and vendors with consumers. Bibi Ikuemonisan, founder of FarmCorps, an agritech platform providing smallholder farmers in Nigeria with end-to-end market access, loans and more. Joy Akparobore, founder of VAMUZ, a Nigerian e-commerce and logistics platform aimed at the local market. Kemi Ogunkoya, founder of LeaderX, an innovative mobile application enabling African professional networks to bridge talent shortages, leadership gaps and more. SOUTH AFRICA Jacqui Rogers, founder of My Pregnancy Journey, an app which aims to guide and empower South African/African women with information and expertise on pregnancy, health, and parenting. TANZANIA Sophia Abeid, founder of Vide, a Tanzanian educational video-sharing technology for content creators. TUNISIA Rym Bourguiba, founder of WildyNess, an online platform that offers travellers authentic experiences in Tunisia creating social impact in rural regions ZAMBIA Vwanganji Amatende-Bowa, founder of Mightyfinance, an SME finance partner building thriving enterprises, that aim to transform lives through the provision of flexible, easy and affordable loans. PROGRAM DETAILS For the fourth edition and for the first time, Google for Startups Accelerator: Women Founders Africa Program, Salesforce Ventures Impact Fund and F6S collaborated with The Future Is Female Mentorship Program, joining TechCabal and, Africa Communications Week, long-term partners of the initiative. The program is now powered by Allison+Partners, one of the international PR industry’s fastest-growing and innovative global agencies. In August and September, the selected mentees will participate in masterclasses hosted by TechCabal, Salesforces, and Africa Communications Week, in collaboration with the program’s mentors. The program mentors are the founding team, Claudine Moore, Managing Director, Africa, Allison+Partners, David Idagu, Africa Regional Consultant, Allison+Partners and Tope Adubi, Digital Marketing Consultant, Allison+Partners. From October to December, the mentors will host customised one-on-one sessions with the mentees focusing on sharing insights into PR and communications fundamentals for early-stage tech startups, such as corporate storytelling and communications, media relations, digital marketing, and more. For more information on the finalists and details of the Program, visit the website or follow CMooreMedia, or Allison+Partners on Twitter and LinkedIn.
Read MoreGender inequality is obstructing Ghana’s path to a larger digital economy
Ghana has an ambitious digital policy that is set to make it a leading digital economy in Africa. However, the existing digital gender gap in the country may obstruct the achievement of the levels of digital literacy required for universal e-government service delivery. In May, the Ghanaian parliament approved a $200 million loan agreement with the World Bank to help push Ghana’s Digital Acceleration Project. This project, slated to run till 2027, is part of Ghana’s larger digital economy policy. The project is aimed at increasing access to internet services for six million people by encouraging private sector investment in last-mile connectivity in underserved rural areas. The digital economy policy, launched in 2020 in collaboration with the World Bank, is hinged on five pillars: universal access and connectivity, digital skills, digital entrepreneurship and innovation, digital government, and data and emerging technologies. Other objectives of the Digital Acceleration Project include accomplishing 1.5 million digital service transactions completed annually, as well as an 85% user satisfaction rate of its Ghana.GOV portal which was launched to provide a single point of access to all government services. Currently, Ghana ranks eighth on the list of digital leaders in Africa, and this Digital Acceleration Project is poised to take it even higher. However, while this ambitious project could improve the digital literacy and economic standing of the larger population, it currently faces a formidable obstacle: the digital gender gap. Women are left behind At an estimated 16.8 million, women make up an equal percentage (50%) of Ghana’s population, but that is where the gender equality ends. In Ghana, women earn, on average, less than one-third of what their male counterparts earn. This significant disparity has far-reaching effects, impacting women’s access to property ownership, including houses, and limiting their ability to possess items like smartphones, hindering their full participation in the country’s digital economy. This especially affects poorer women. According to a report by the United Nations on gender inequality in the digital space, only about 60% of Ghanaian women own smartphones, compared to 72% of men. The average cost of a smartphone is estimated to be $41, which translates to about a quarter of the average monthly income in the country. According to a survey participant in a study done by the Groupe Spécial Mobile (GSMA), respondents felt spending money on data for a smartphone sounded like a waste when there were other more pressing needs to be attended to. “I cannot go and buy an expensive phone and also be paying for data when I need to provide food for my hungry children,” one participant shared. Another factor that affects Ghanaian women’s ability to own smartphones is inadequate literacy and digital skills. According to findings from the GSMA study, at least three-quarters of women who do not use mobile internet services in Ghana only have a primary school education or less. This coincides with the national gender ratio for completion of senior high school in the country; 68 girls for every 100 boys. Additionally, more than one-third of the women surveyed who do not use mobile internet attribute insufficient skills as a barrier to being digitally included. “I do not know how to use the phone to make calls properly, how much more using the internet and or even visiting these government websites you are talking of,” a survey participant responded when asked why she didn’t use the country’s official payments website. “My education is limited and I cannot send or read messages. So I feel I may make a mistake and make the wrong payment, so I do not take the risk of making payment on an e-government platform, where I might lose my money and not get my refund,” another participant shared. Potential solutions to lessening the gap While the Ghanaian government has taken some steps to reduce digital illiteracy with the launch of digital literacy initiatives, these initiatives frequently target younger people with the aim of getting them into the formal sector. This neglects people in the informal economy—the majority of which are women—who make up the bulk of the country’s workforce. For literacy training to have a wider impact, women in the informal sector must be focused on, with training programs scaled across the country. An example is the ICT Skills for Entrepreneurial Women Empowerment (ISEWE) which has trained 15,000 artisans (including hairdressers, tailors, market women, and mechanics) and 720 female entrepreneurs in basic digital skills. But while such initiatives have recorded some success in improving digital literacy, beneficiaries are often unable to practise new skills beyond the training sessions due to a lack of device ownership. Another way to lessen the digital gender gap is through financial inclusion. Ghana has made significant progress in promoting financial inclusion in recent years, but not for women. The country has one of the most mature mobile money markets in the world and has a financial inclusion rate of 68.2%, one of the highest in sub-Saharan Africa. Despite these impressive numbers, credit consumption remains appallingly low (only 13%), due to a lack of collateral and high interest rates on loans, which directly affect people in the informal economy. Beyond giving women more control over their finances, financial inclusion can also give more women access to tools to expand their businesses and increase their purchasing power. Ghana has the highest number of female entrepreneurs in the world but the majority of them still operate at the small-scale level because they lack the resources and education to scale up. Financially empowering women puts them in better positions to participate more fully in the digital economy. Unless the contributing factors behind the gender gap and digital exclusion, in general, are addressed, it will be impossible to drive large-scale adoption of e-government services. As the digital gender gap shrinks, Ghana’s digital economy policy will have a significant number of benefits for women. To read the full report on Ghana’s e-Government services from Groupe Spécial Mobile (GSMA), download it here.
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👨🏿🚀TechCabal Daily – Weirdcoin
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Nigeria’s tech ecosystem found a ray of hope last night. Bosun Tijani, founder and CEO of pan-African incubator CcHub, was nominated as the country’s new minister of communications and digital economy. It’s not set in stone yet, but if he’s approved, the ecosystem will have one of its own leading the policy development and innovation in the tech space, and yes, that includes the implementation of the Nigeria Startup Act! Let’s keep our fingers crossed! In today’s edition Kenya suspends Worldcoin Safaricom has a new BNPL product Flutterwave’s $end rebrands to Send app Remedial Health raises $12 million The World Wide Web3 Event: Get early-bird tickets for the Moonshot Conference Opportunities Crypto Kenya suspends Worldcoin Kenya’s interior ministry has suspended the operations of Worldcoin, a blockchain product which requires users to scan and register their eyeballs. The parent company of Worldcoin, Tools for Humanity, is a registered data processor in the country, but the ministry says it needs to investigate the authenticity and legality of its activities. Image source: Odhiambo Ogola (@PhilipOgola) ICYMI: Worldcoin launched In Kenya and 26 other countries to collect the iris scans of people. The Worldcoin project has been popular in Kenya, with long queues forming at several scanning venues. Participants receive 25 Worldcoin tokens (WLD) as compensation, and several crypto exchanges are present at the venues to convert the digital tokens into local currency. Currently, in Kenya, the 25 tokens are worth Ksh7,000 ($50). So far over 350,000 Kenyans have queued up to get scanned. Why does Worldcoin need this data anyway? Worldcoin’s parent company, Tools for Humanity, says it wants to protect humans from impersonation by AI bots. Interestingly the founder of popular chat or ChatGPT, Sam Altman, is one of the founders of Worldcoin. Since each individual’s iris data is unique, the scanned iris data will be registered on the blockchain, creating a unique identity that can serve as proof that the user is a human being. These scans will then form digital identities, serving as a KYC to access essential financial services. Bright red flags: Globally, there’s quite a buzz about the motive behind this blockchain-based and AI-fighting digital passport project. Before it launched, the project was accused of taking more data than what it disclosed to users. The founder of the Ethereum blockchain, Vitalik Buretin, still holds that opinion and other privacy concerns about the project. In Africa, there are questions about why they are creating such an ID in countries where AI and blockchain tech aren’t yet part of everyday life. Secure payments with Monnify Monnify has simplified how businesses accept payments to enable growth. We are trusted by Piggyvest, Buypower, Wakanow, Fairmoney, Cowrywise, and over 10,000 Nigerian businesses. Get your Monnify account today here. Fintech Safaricom and Craft Silicon launch BNPL products in Kenya Kenyan telecom Safaricom and software development company, Craft Silicon, have launched similar products in the Kenyan market: Faraja and SpotIt. Faraja, which is a partnership between Safaricom and financial services firm EDOMx, is a Buy Now Pay Later (BNPL) product, while SpotIt is setting itself apart from Faraja as a “Get Now Pay Later (GNPL)” product. Both products are similar but have different terms and target customers. Craft Silicon CEO Kamal Budhabhatti (R) during the launch of SpotIt Safaricom’s Faraja: Faraja empowers businesses to grow their sales by enabling their customers to buy now and pay later. The product has been in development for over a year and was launched a few days ago after approval from the Central Bank of Kenya (CBK). Customers can make purchases ranging from Ksh20 ($0.14) to Ksh100,000 ($703) without any interest fee, and have a 30-day period to repay the loan. Faraja’s services, however, are limited to Kenya, so customers cannot use it for international purchases. Craft Silicon’s SpotIt: SpotIt presents consumers with the chance to engage in credit-oriented shopping, followed by the option to gradually repay their loans through instalments. Unlike Faraja, SpotIt allows customers to create virtual cards for international purchases and payments. The credit limits are determined based on the customer’s credit score, a parameter evaluated by the bank that serves as the gateway to SpotIt. For customers who choose to acquire products on credit via SpotIt, the repayment schedule spans a span of six to twelve months. SpotIt is revolutionising BPNL services in Africa: Unlike other BNPL services, SpotIt is a mini app integrated into existing banking apps rather than a standalone service. So far, the model has approximately 30–40 merchants. Craft Silicon has also partnered with four banks, including NCBA, to integrate SpotIt as a mini app, and others like Equity Bank are expected to join soon. Discover Trends with Smile Identity Download the Smile ID State of KYC in Africa Report on the latest trends in identity verification across Africa, highlighting the power of biometric verification and document verification in combating fraud. It is a must-read for any business looking to acquire users across Africa and keep up with fraud trends. Fintech Flutterwave’s $end Mobile rebrands to Send App GIF Source: Tenor Payments company Flutterwave has rebranded its $end Mobile product to Send App. When it initially launched in 2021, Send App enabled payments to various countries, including the UK, EU, Nigeria, and other African countries. With the recent update, the app has expanded its recipient countries to include Egypt and Sénégal. Additionally, users in the US and Canada can now send money through the app to other countries. The product also got a new look and is available for download on Android and iOS. Zoom out: This news comes after Flutterwave launched Tuition, a product that enables Africans to make quick payments of school fees to educational institutions abroad. Healthtech Remedial Health raises $12 million in Series A funding round Remedial Health Founders Samuel Okwuada and Victor Benjamin Remedial Health, a Nigerian health tech startup is remedying Nigeria’s drug counterfeit problem. The health tech startup secured
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Access to credit financing for PPMVs in Nigeria
Image source: The Guardian Nigeria Patent and proprietary medicine vendors (PPMVs) are known as individuals without formal pharmacy training who sell orthodox pharmaceutical products on a retail basis for profit. They are often the primary healthcare providers for a significant portion of the Nigerian population, especially in rural areas where access to formal healthcare facilities is limited. These vendors offer various services, including treatment for malaria and diarrhea and family planning services. There are a number of challenges facing PPMVs. However, given the informal nature of their business, limited access to credit remains one of the most pressing issues. Financial institutions often hesitate to extend credit to PPMVs due to perceived risks, lack of collateral, and limited credit histories, hindering their ability to expand their businesses and invest in essential resources. Charity Ukwo Abah, deputy director of the enterprise development and promotion department at Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), emphasized the significance of access to sustainable financing schemes for PPMVs to expand their businesses and offer a wider range of quality medications. “Empowering PPMVs with access to credit financing is essential for their growth and ability to provide improved healthcare services to the communities they serve. This will lead to better healthcare outcomes for Nigerians, especially those in underserved areas,“ Mrs Abah said during a TechCabal Live event held in partnership with Solina Group that discussed the role of technology in enhancing access to credit for PPMVs. The event had in attendance key stakeholders in the health sector interested in strengthening health inclusion in Nigeria. “PPMVs play a critical role in delivering healthcare services, but their effectiveness is hampered by challenges such as counterfeit medications and lack of clear regulatory frameworks, Emeka Okafor, project director at IntregratE, said. “By working together with regulatory bodies and pharmaceutical companies, we can strengthen PPMVs’ capabilities and enhance access to quality healthcare for all citizens,” he added. He also highlighted the need for improved regulation and collaborations with pharmaceutical companies to build a more robust and inclusive healthcare system. According to industry leaders, it is crucial for financial institutions to integrate technology in providing credit to PPMVs. Technology can be used to build a digital credit scoring system specifically for PPMVs. This will provide access to relevant data such as sales performance, customer feedback, and inventory which will help financial institutions better assess the creditworthiness of these vendors. This data-driven approach will enable lenders to make informed decisions, reducing perceived risks and facilitating access to much-needed financing. This, in turn, will empower PPMVs to expand their businesses and improve healthcare services nationwide.
Read MoreBreaking: Bosun Tijani nominated for ministerial position in Tinubu’s cabinet
Bosun Tijani, the CEO and co-founder of CcHub, a pan-African tech incubator, has been unveiled as a ministerial nominee for President Tinubu’s administration. Earlier today, Senate President Godswill Akpabio shared 19 more ministerial nominees submitted by President Bola Tinubu’s administration. For stakeholders in Nigeria’s tech ecosystem, one name struck a chord, Bosun Tijani, the CEO and co-founder of CcHub, one of the most influential incubators on the continent. Tijani is the only name on the list from within Nigeria’s tech ecosystem, suggesting that he is being nominated for the Minister of Communications and Digital Economy role. TechCabal had earlier reported that four names were being considered for key roles in Tinubu’s administration, especially as the President had focused on Nigeria’s tech ecosystem during his campaign. Bosun Tijani, Oswald Osaretin Guobadia, Olumide Soyombo, and Idris Alubankudi Saliu were the names TechCabal reported to be in the running for the ministerial position. However, only Tijani’s name has appeared on the list. Tijani’s nomination is a break from the norm of civil servants and career politicians being appointed as the minister responsible for Nigeria’s budding tech ecosystem. For the tech ecosystem, it means a seat at the table and some support from the government in building an even bigger ecosystem. Just as Nigeria’s Startup Act had shown that the government was willing to consult with the ecosystem, this nomination shows a continuation of that policy. Bosun Tijani’s profile Tijani holds two degrees from the University of Jos, Nigeria: a Bsc. in Economics and a Diploma in Computer Science. He subsequently obtained an MSc. in Information Systems and Management from the Warwick Business School in England. In March this year, Tijani completed a PhD program in Innovation and Economic Development at the University of Leicester. He has led the expansion of CcHub across Nigeria, Kenya, and more recently, Namibia. From its humble beginnings in Yaba, CcHub has grown to become a significant catalyst of tech advancement in Africa by empowering young people with the tools, communities and capital they need to launch impactful ventures. With a billion naira growth fund, CcHub has committed to impacting over 95 early-stage businesses including those bringing innovation to Africa’s education and healthcare systems. In 2017, New Africa Magazine named Tijani as one of the 100 most influential people in Africa. Exclusive: Tinubu eyes Nigeria’s tech experts for key roles
Read MoreThis YC-backed startup wants to be the “Amazon” for second-hand smartphones
Eze, a YC-backed B2B marketplace, is connecting retail stores dealing in second-hand smartphones and electronics with global electronics manufacturers and suppliers. In June, the startup raised $3.7 million in an oversubscribed seed round. For over two years, Joshua Nzewi and David Iya ran a smartphone wholesale business in the U.S. and decided to begin shipping second-hand devices outside their base. But they soon realised deeper issues that plagued the second-hand smartphone market, especially in Nigeria, where the duo originally hail from. Thousands of retailers in Nigeria sell refurbished smartphones shipped from other countries and sold in markets like Computer Village in Lagos. But these retailers deal with problems such as logistics, limited supply, pricing uncertainty as well as payment and trust issues. So in 2020, Nzewi and Iya founded Eze, a B2B marketplace that connects global ma suppliers with retailers dealing in second-hand smartphones and electronics such as laptops, tablets, wearables, and other devices. “Think of us as eBay or Amazon or even like a Jumia. A buyer comes to our platform and sees all the different prices for several devices and makes a bid. If the seller accepts the offer, payment is made and the transaction is done,” Nzewi told TechCabal over a call. Eze takes a cut from each transaction done on the platform. According to Nzewi, the YC-backed startup has sold over 500,000 devices since its launch in early 2021 and built a presence in over 15 countries including the United States and Nigeria, its biggest market. He claimed over 50 businesses in Computer Village are currently registered on the platform. Though devices listed on Eze are priced in dollars, Eze offers currency conversion: buyers can pay in their local currency including naira while sellers are paid in their settlement currency. Nzewi added that Eze has a fintech subsidiary currently available in the United States, Eze Capital designed to help businesses in the smartphone wholesale business scale their operations. What’s different with Eze? Buying second-hand electronics is tricky considering the risk of getting sold substandard or fake products. To overcome consumers’ trust issues, Eze operates a grading process to confirm that all gadgets up for sale are in good condition and genuine, according to Nzewi. “We vet all the devices and test them before they are shipped to the buyers. For every transaction, we safely hold the funds in escrow until the buyer confirms the delivery. We also do a rigorous check on all sellers on our platform to ensure that they are legitimate,” he said. Nzewi added that there’s a standard 30-day warranty on the products and a return policy for customers in situations where gadgets get damaged in transit. The company partners with FedEx for logistics in the U.S., Europe, and Southeast Asia while using third-party logistics services across its Latin American and African markets. Though Eze is a B2B marketplace, Nzewi said the company has the consumers in mind. According to Counterpoint Research’s Global Refurb Smartphone Tracker, refurbished smartphone sales grew 5% globally in 2022, with Apple gaining 49% of the second-hand market. “We know that the people that these retail stores are selling to are the consumers. And so if we can reduce the costs as much for the retail stores, and we can improve the quality as much of the retail stores, the end consumers are the ones that benefit at the end of the day,” he said. Expanding operations In June, the YC-backed startup raised $3.7 million in an oversubscribed seed round with backers such as Y Combinator, Right Side Capital, C2 Ventures, Boro Capital, EVPI Investments, Itochu, Jack Greco, and other angel investors. Nzewi told TechCabal that much of the funding has gone to getting new hires and expanding the company’s sales operations. “And then we’re also looking to set up a second facility, although we’re not sure of the location yet,” he added. According to the International Data Corporation (IDC), shipments of used smartphones will reach a market value of $99 billion by 2026, Eze is betting that it will take advantage of this projected growth by adding new products and creating fresh partnerships with shipping companies to improve sales on its platform, according to Nzewi.
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