- October 30 2023
Kenya has launched $50 locally assembled smartphones
Kenyan smartphones, Neon Smarta and Neon Ultra, will be locally assembled and sold by telcos Safaricom and Faiba. Kenya has launched Neon Smarta, and Neon Ultra, two locally assembled smartphones, and the devices are now available to customers at a retail price of $50 (KES 7,500), $10 above its earlier proposed price. The smartphones were developed through a joint venture between Safaricom and Faiba, along with the assembly partner, East Africa Device Assembly Kenya Limited (EADAK). “This assembly plant will support the government’s agenda to enhance digital inclusion in the country. We have been able to achieve affordability through a collaborative approach that comprises industry partnership and favourable government policies,” Joshua Chepkwony, chairman of EADAK, said. With an expected production volume of 21,000 phones monthly, the smartphones are a part of the government’s digital literacy program, which has trained 300,000 people in 2023. Part of a broader digital transformation agenda will also see the government expand fiber connectivity to previously inaccessible areas. Low-cost smartphones are not entirely new to Kenyans. Safaricom has for a long time sold budget devices, including Neon smartphones. A few weeks ago, the Neon Smarta and Neon Ultra appeared on Safaricom’s e-commerce platform, Masoko, at KES 7,000 ($47) and KES 11,000 ($73) respectively. These are the same devices launched today but cost an extra KES 500 ($3.3). The Smarta is the smaller of the duo at 5 inches, compared to the Ultra’s 6.5-inch display. Both have 2 GB of RAM, 32 GB internal storage, and support 4G. Customers who buy a unit from Safaricom will get a single SIM variant because the telco does not sell dual-SIM devices. HMD Global, which manufactures Nokia-branded devices, had also promised to start assembling its devices in Kenya to address high smartphone prices. However, TechCabal could not get any updates about the launch from HMD Global, Nairobi.
Read More- October 30 2023
MTN Nigeria’s revenue rose by 21.76% to ₦1.77 trillion in nine months of 2023
MTN Nigeria will increase investments in data revenue after the telecommunication giant saw a slump in its profit after tax for the first nine months of 2023. While the telco’s revenue grew by 21.76% to ₦1.77 trillion in the first nine months of 2023, profits declined by 45.22% to ₦148 billion. MTN Nigeria’s CEO, Karl Toriola, said tough operating conditions and a persistent increase in inflation affected consumer spending. Other macroeconomic issues like removal of the fuel subsidy, and a currency devaluation were also mentioned. Nigeria’s 2023 Finance Act also introduced VAT on tower leases effective September 2023. Key takeaways MTN added 2 million subscribers in 9M 2023 Active mobile money (MoMo PSB) wallets increased by 53.1% to 3.6 million FinTech revenue dwindled by 5.6% Going forward, Toriola said the telco would expand their quota of 4G and 5G data subscribers. “We plan to roll out capex during Q4 to reach 83% 4G and 10% 5G population coverage by year end. In addition, we will leverage the additional 2.6GHz spectrum to enhance network capacity. This will help us sustain growth in data traffic and further drive our Own the Home strategy by leveraging the 5G fixed wireless access devices, mobile broadband solutions, and fibre-to-the-home connectivity,” he said in the earnings report. Toriola said leasing MTN’s 2,500 network sites to American Towers Corp. (ATC) was part of a move to ensure profitability in the light of challenging operating conditions. Even though he admitted an additional 12,000 sites were under the management of IHS Towers, the CEO pledged to explore ways to optimise network costs in line with their “expense efficiency programme aimed at improving operating margins.” Three things are top of mind for Toriola, they include the network, MoMo PSB acceleration, and operational efficiency. Mobile services The telco’s financial statement also reported that its services revenue grew by 21.4%, driven by voice revenue growth of 10.6% and data revenue growth of 36.4%. The telco added two million mobile subscribers to take its tally in nine months to 77.6 million. Active data users grew by 3.6 million. Active mobile money (MoMo PSB) wallets increased by 53.1% to 3.6 million, powered by 293,000 MoMo agents, and 197,000 merchants in its ecosystem. TechCabal had recently reported that the MoMo service still requires more adoption. Nonetheless, its digital revenue arm saw a 55.4% increase to 24 billion while its FinTech revenue dwindled by 5.6%.
Read More- October 30 2023
Airtel Africa’s revenue recovers from naira devaluation slump, jumps by 19.7%
Airtel Africa grew its revenue in constant currency terms by 19.7%. The company also grew its customer base to 147.7 million. Airtel Africa grew its revenue in constant currency terms by 19.7% for the half-year ended 30 September 2023, according to the company’s financial statements published on the Nigerian Exchange Group (NGX) on Monday. This is an indication that the company is recovering from the naira devaluation in June that led to a $151 million loss in the first quarter of 2023. Despite this growth in revenue, the company reported a loss after tax of $13 million, driven by a foreign exchange loss of $471 million recorded before tax. It also reported a $317m loss after tax due to the naira devaluation. Airtel classified this impact as an exceptional item. Key takeaways Airtel grew its constant currency revenue by 19.7% in the period under review. The telco recorded a loss after tax of $13 million. Airtel grew its total customer base by 9.7% to 147.7 million. “As reported in July 2023, our results for the first quarter were significantly impacted by the changes to the FX market in Nigeria, introduced by the Central Bank. Whilst the changes are required for the long-term benefit of the Nigerian economy, the immediate impact of the naira devaluation continues to weigh on our reported financial performance in the period,” Airtel Africa’s CEO, Olusegun Ogunsanya said of the financial performance. The company said all its segments delivered double-digit constant currency revenue growth despite the impact of the currency devaluation. Mobile services revenue was up 18.3%, thanks to an 11.5% growth in voice revenue and a 28.1% growth in data revenue. Airtel’s mobile money revenue also grew by 30.9% in constant currency. Airtel grew its total customer base by 9.7% to 147.7 million. Airtel’s data customers rose by 23% to 59.8 million, while its mobile money customers grew by 23.1% to 36.5 million. With its operating performance, the company hopes to grow its presence across its 14 markets on the continent. In August, TechCabal reported that the company is planning to list shares on the Uganda Securities Exchange. The telco intends to sell 20% of its wholly-owned subsidiary in Uganda, Airtel Uganda Limited.
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- October 30 2023
A clash between Nigerian banks and neobanks highlights financial industry’s complicated fraud problems
Fraud risks are rising in Nigeria’s financial system and are forcing commercial banks to devise stringent measures to rein it in, multiple industry sources told TechCabal. This follows a recent TechCabal report that Fidelity Bank, which holds ₦3.1 trillion ($3.9 billion) in consumer deposits, had restricted fund transfers to several challenger banks, including Kuda Bank, OPay, Moniepoint and PalmPay. With millions of customers across digital apps and offline payment channels, these four neobanks have become customer favorites and have entrenched themselves in the financial system in the past four years. But to win over customers, they have relied on flexible account verification processes while emphasising their push to improve financial inclusion in the country. These verification processes are at the heart of a clash between these neobanks and some of Nigeria’s biggest legacy banks. Last week, Fidelity Bank blocked transfers to neobanks over lax anti-fraud and customer verification standards, sources with knowledge of the matter told TechCabal. The restrictions remained for two weeks, those sources said. News of the restrictions polarised users on social media with speculation that the bank was trying to slow down competition. The restrictions have since been removed by Friday, Oct. 27, bank customers said. Fidelity Bank did not respond to TechCabal’s request for comments regarding these actions. Key Takeaways Fraud is a growing problem in Nigeria’s financial system. Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud since 2020. Relaxed transaction rules and flexible customer verification standards are making it easier for scammers to target victims. Nigeria’s financial system struggles with information sharing and lacks coordination on financial fraud investigations by local law enforcement agencies. But Fidelity is not the only bank concerned about fraud related to neobanks. At least two other major Nigerian banks have had internal conversations about blocking these upstarts from their list of financial services for consumer fund transfers, two financial services insiders, who asked for anonymity so they could speak freely, told TechCabal. Media reports have highlighted the scale of fraud challenges in the country. This week, BusinessDay reported that Fidelity Bank lost ₦2 billion ($2.5 million) in three attacks. Court documents posted on social media and verified by TechCabal showed that Access Bank, Nigeria’s largest bank by consumer deposits, filed a lawsuit in June to recover ₦3 billion ($3.8 million) that was fraudulently withdrawn. In July, the bank filed a separate lawsuit to recover an additional ₦5 billion ($6.3 million) illegally transferred from its coffers by scammers. Fintech startups have also been impacted. In March, Flutterwave, Africa’s most valuable startup, reportedly lost ₦2.9 billion ($3.7 million) to a cyber attack — the fintech continues to deny the incident. The mobile money service of Nigerian telecoms company MTN also lost over ₦10.5 billion ($13.3 million) in 2022 to unauthorized transfers caused by a glitch one month after it re-launched as a payment service bank. Overall, Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud cases since 2020, according to the Financial Institutions Training Centre (FITC), a financial research and advocacy organization operated by the Central Bank of Nigeria (CBN). During this period, the industry lost around 15.4% or ₦24.4 billion ($30.9 million) to grafts, including fraudulent activity across point of sales devices, internet banking, ATMs, mobile apps, and malicious digital loan activities. Fraud has long been a concern in Nigeria, Africa’s largest economy. Currency devaluations and large transaction volumes in developed markets like the US have meant that Nigerian-based scammers have historically targeted foreign companies, but that’s changing. As the value of electronic payments in Nigeria has grown to ₦387.1 trillion ($490.7 billion) in 2022, up from ₦38.2 trillion ($48.4 billion) in 2016, scammers have increased their focus on the local market. That local market is mostly a mix of fintech startups and banking industry players working to improve financial inclusion. As part of the financial inclusion drive, transaction rules have been relaxed, and customer verification standards are now more flexible. Industry experts worry that this trend exposes customers and the industry to higher risks. Phishing has become widespread, with fake social media handles posing as verified handles of local banks to collect customer information and fraudulently move monies from their accounts. It has forced GTBank, Nigeria’s most profitable bank, to fix a banner at the top of its website warning customers to “be mindful” of sites impersonating its brand. Two sources at traditional banks suggested that the verification and identity management process at banks and digital challengers is inadequate, making them susceptible to bad actors. Between April and June 2023, scammers created and operated several bank accounts, which defrauded the industry ₦5.5 billion ($6.9 million) in fraudulent loans, according to an FITC report. A 2022 KPMG Nigeria study found that only 30% of local banks have fully implemented KYC and anti-fraud measures. “Banks do not investigate sudden inflows or outflows against accounts without prior notice. When issues become frauds, the banks claim not to be able to reach customers,” a KYC expert told TechCabal. The country’s financial system continues to struggle with issues around information sharing, international collaborations and lack of coordination on financial fraud investigations by local law enforcement agencies, said the Financial Action Task Force (FATF), the Paris-based global anti-fraud watchdog group. In February, FATF placed Nigeria on its grey list over “identified strategic deficiencies.” Although the country has moved swiftly to fix some of these deficiencies, Muhammed Jiya, a director at the Nigerian Financial Intelligence Unit (NFIU), warned that Nigeria could be placed on the FATF blacklist by January 2025. The black list risks cutting Nigeria from the global financial system, making it difficult for the West African country to do business with other economies or access international financing, Jiya explained on an industry webinar in March. Policing fraud continues to face obstacles due to the uncooperative nature of several companies, industry sources explained. Traditional banks tend to work closely with one another to curtail illicit fund transfers and suspected accounts while fund recovery processes proceed. Startups are yet
Read More- October 30 2023
Bolt Kenya drops booking charges as it waits on licence renewal update from NTSA
Bolt’s operating licence update will be determined today. To appeal for a favourable outcome, Bolt has dropped booking charges. Bolt Kenya will get an update on the status of its operating licence renewal from the National Transport and Safety Authority (NTSA) after the exercise was halted a few days ago. “The licence renewal process is currently in progress with constant engagement and collaboration with the National Transport and Safety Authority, and it is expected to be finalised by Monday, October 30, 2023, as per letter by NTSA to Bolt,” Bolt Kenya said in a statement. A contentious issue in the licence renewal process is an “illegal” 5% booking fee which Bolt has now suspended. In November 2022, Bolt and Uber introduced booking fees after Kenya’s Ministry of Transport directed all e-cab companies to reduce their commission to 18%, slightly lower than their standard 20% charge. The booking fees, which are paid by customers, helped the taxi-hailing companies circumvent the reduced percentage. Per Bolt, a booking fee is for “covering support and enhanced technological features that ensures an even more efficient service on our platform.” Uber charges an even higher amount and defends it as: “A maximum possible booking fee of 11% is charged which is separate from the fare calculation above. A portion of the booking fee covers taxes, such as VAT. Uber is required by law to charge drivers VAT on the service fee. Therefore, to avoid reducing driver earnings, this booking fee is used to cover the VAT and is remitted to the KRA.” The NTSA also has concerns related to driver and rider safety. While the taxi app is incredibly popular in Kenya, customers have accused its driver partners of sexual harassment and assault. The NTSA asked Bolt to give details about how it would address these concerns as part of its licence renewal agreement.
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- October 30 2023
TechCabal Daily – Kenyan ride-hailing drivers threaten strike
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning TC Daily is running feedback sessions to help us create a better product for our readers in 2024! We’re looking for feedback on the content, the design, and the overall user experience of TC Daily. Your feedback will help us make TC Daily more informative, engaging, and useful for everyone. Schedule a 15-minute meeting with our team to share your feedback. Click here to schedule a meeting. P.S. If you can’t schedule a meeting, we welcome you to respond to all TC Daily editions with your thoughts and questions. You can choose to reply to this email or shoot me your response at timi@bigcabal.com. In today’s edition Fidelity Bank reinstates neobanks Kenyan drivers don’t want Bolt and Uber reinstated yet Airbnb launches $500,000 fund to support tourism in Africa Social commerce in MEA to reach $41.9 billion by 2029 The World Wide Web3 Events Fintech Fidelity Bank reinstates neobanks GIF source: Tenor Nigerian commercial bank, Fidelity Bank, has quashed its qualms with neobanks. Last Friday, sources confirmed that the bank reinstated customer transfers to OPay, Moniepoint, Palmpay and Kuda. ICYMI: This comes a week after customers noticed that several neobanks were no longer listed on the list of approved financial institutions in the Fidelity Bank app. While Fidelity, at the time, claimed that the removal was due to ongoing upgrades, other sources stated that it was due to KYC violations from the neobanks. Last week, sources at the neobanks said that they had been in contact with the commercial bank to resolve all concerns. However, the reinstatement was also due to one regulator, the Nigeria Interbank Settlement System (NIBSS), expressing displeasure at Fidelity’s move. The big picture: All through October, the Nigerian tech ecosystem has been battling KYC issues with neobanks. Earlier in the month, OPay was accused of opening accounts for users without permission. The neobank denied the charge, stating that all existing accounts were either created on OPay or any of its now-defunct verticals including OKash, ORide and OFood. This explanation, however, isn’t stopping Nigeria’s data protection bulldog, the NDPC, which has launched an investigation into the neobank. 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. Mobility Kenyan drivers don’t want Bolt and Uber reinstated yet Image source: YungNollywood Drivers of ride-hailing platforms in Kenya are taking advantage of the situation. On Saturday, the drivers urged the National Transport and Safety Authority (NTSA) not to renew the licences of ride-hailing platforms Bolt and Uber until the companies act on submitted complaints. The rearview mirror: Earlier this month, the NTSA declined Bolt and Uber’s requests to renew their operating licences. According to the regulator, the ride-hailing platforms were charging illegal booking fees and higher commission rates than the NTSA benchmark allows. While the companies have stated that the booking fees are used to cover taxes and “support or technological features”—in Bolt’s case—the regulator is still not satisfied. The drivers of the platforms are now urging the regulator to ensure that the companies are complying with all requirements of the Transport Network Companies, Drivers, Passengers and Vehicle Owners Regulations, 2022 before they are reinstated. This includes: The requirement that Bolt be registered as a corporate company in Kenya. The removal of the “illegal” 11% and 5% additional fees Uber and Bolt—respectively—charge drivers. Verification of every passenger that registers on the companies’ apps. Fair hearing and institution of notice periods for the removal, deactivation or suspension of drivers. The drivers have given the NTSA seven days to ensure that the companies comply with all regulations, or face a nationwide strike. A steep ride: We don’t think the strike will be effective. So far, these ride-hailing companies have not taken driver complaints as seriously as they probably should. Across the continent, drivers in Kenya, Nigeria, South Africa and even Tanzania are either striking or have gone on strikes for conditions that are still unfulfilled—or partially fulfilled. Whether it’s a demand for a reduction in commission rates or more safety measures, Bolt and Uber have always given the same response; they consider these drivers as contractors and not employees and are not necessarily responsible for their welfare or their actions. Also, these companies don’t joke with their commissions. In 2022, when Tanzania enforced a maximum commission rate of 15% for all ride-hailing platforms, Uber promptly suspended its operations in the country while Bolt bolted to its corporate clients. Less than a year later, the country reinstated a 25% commission rate that brought Uber and Bolt speeding back. While Kenya admittedly has a larger market than Tanzania and is taking a stronger stance with international trade, it remains to be seen how the country will respond to these new demands. Tourism Airbnb launches $500,000 fund to support tourism Image source: AptanTech We may be getting new tourism hotspots soon. Last week, at the Africa Travel Summit in Johannesburg, South Africa, international marketplace Airbnb launched a $500,000 fund geared towards supporting tourism in Africa. Per Velma Corcoran, the company’s regional lead for MEA, the fund will be used to help governments, entrepreneurs and tourism organisations identify and unlock new tourism opportunities across different communities in Africa. The funds will also be dispersed via awards and grants given to local stakeholders. The company will also give access to the City Portal to 10 more African countries, including South Africa. This portal is a new tool for local governments and tourism organisations to learn about Airbnb in their communities and find ways to boost tourism. More for entrepreneurs: Airbnb is also expanding its Entrepreneurship Academy to five new countries in the next two years, following its success in South Africa and Kenya. The Academy is a skills development programme that helps people from diverse and underrepresented communities learn how to become successful Airbnb hosts, in partnership with local organisations. Zoom
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- October 27 2023
USSD for Zenith, Polaris, First & Union Banks 2023
USSD codes are a convenient and quick way to access banking services on the go. We highlighted USSD codes for MTN network in South Africa recently. Here, we’ll highlight the USSD codes for some Nigerian such as Zenith Bank, Polaris Bank, First Bank, and Union Bank. Zenith Bank USSD codes Zenith Bank offers a range of services through USSD codes stemming from the *996#. For example, see the below: To check your account balance, simply dial *966*00#. For airtime top-up, use *966*Amount*Mobile Number#. For mobile transfers, dial *966*Amount*Recipient’s Account Number#. These USSD codes provide Zenith Bank customers with easy access to their accounts and quick transactions. Polaris Bank USSD Polaris Bank, formerly Skye Bank, also has USSD codes for its customers’ convenience. They stem from the *883#. See examples below: To check your account balance, dial *833*6#. For funds transfer, use *833*Amount*Account Number#. Like Zenith’s, Polaris Bank’s USSD codes services ensure that you can manage your finances without the need for an internet connection. First Bank USSD codes First Bank, one of the oldest and most trusted banks in Nigeria, provides various USSD codes for its customers. The foundation code for this bank is *894#. Use examples are as follows: To check your account balance, dial *894*00#. For airtime top-up, use *894*Amount*Mobile Number#. For funds transfer, dial *894*Amount*Account Number#. Union Bank Union Bank offers a range of USSD codes to cater to its customers’ needs and they all stem from *826#. See examples of its subsidiaries below: To check your account balance, dial *826*4#. For airtime top-up, use *826*Amount*Mobile Number#. When you need to transfer funds, dial *826*2*Amount*Account Number#. Like others, Union Bank’s USSD services are designed for simplicity and accessibility. Final thoughts USSD codes have revolutionised the banking system in Nigeria. The offering of a hassle-free way to access essential services without the need for internet connectivity. In other words, the USSD codes provided by Zenith Bank, Polaris Bank, First Bank, and Union Bank are powerful tools that put control over your finances at your fingertips. With these codes, you can conveniently and securely manage your banking needs, ensuring that you’re always in charge of your financial affairs, no matter where you are in the country.
Read More- October 27 2023
Breaking: Fidelity Bank restores transfers to OPay, Moniepoint, and Palmpay
Fidelity Bank has restored transfers to neobanks OPay, Palmpay, Kuda, and Moniepoint a few weeks after it blocked them due to rising fraud and customer verification concerns. Fidelity Bank has reinstated customer transfers to neobanks like OPay, Moniepoint, Palmpay, and Kuda, sources at the neobanks have confirmed. TechCabal reported that the bank blocked customer transfers to the affected neobanks two weeks ago over rising fraud and customer verification concerns. “We have been in talks with them [Fidelity], so we knew when they were going to restore us,” a source at one of the affected neobanks told TechCabal. The reinstatement of transfers comes after a regulator, the Nigeria Inter-Bank Settlement System (NIBSS), expressed its displeasure with Fidelity Bank’s decision to block transfers to these banks, one source close to the matter said. Several customers first noticed that these neobanks were no longer listed on the Fidelity Bank app’s list of approved financial institutions. OPay denied being affected by the restrictions, despite customer complaints. A source at Moniepoint confirmed the restriction while Sofia Zab, Palmpay’s Chief Marketing Officer, told TechCabal that the neobank’s removal was not due to any perceived issues with PalmPay but due to a necessary system upgrade on Fidelity Bank’s side. Neobanks have become increasingly popular and helpful after a policy-driven cash crunch, making them a payment choice. Almost instant transaction speeds and lower fees make these neobanks darlings to merchants and vendors in the country, helping them receive customer payments and scaling their businesses. Blocking transfers to these neobanks meant Fidelity Bank lost revenue from transaction fees.
Read More- October 27 2023
South Africa’s new drone, Milkor 380 makes successful first flight
This article was contributed to TechCabal by Bonface Orucho via bird story agency. The Milkor 380, boasting an impressive 18.6-meter wingspan and a maximum takeoff weight of 1300 kg, achieved its inaugural flight on September 19, according to a story published in DefenceWeb on October 10, in what the website called a “giant milestone”. “This makes South Africa among a handful of countries globally to have successfully developed and flown a UAV of this size,” the DefenceWeb reports. This first flight “is a significant achievement for Milkor and the South African Defence Industry (SADI),” Daniel du Plessis, the Marketing and Communications Director at Milkor, stated. The Milkor 380 project, initiated in 2018, has been actively conducting taxi testing throughout this year. This UAV is fully manufactured in South Africa at the Milkor facility in Cape Town, and is equipped with cutting-edge technology that provides unique advantages to the military. Specifically designed for long-endurance intelligence, surveillance, target acquisition, and reconnaissance missions, it can carry an impressive 210 kg of external payload, including various weapons and sensors. The aircraft is powered by a four-stroke, four-cylinder turbocharged Rotax 915iS engine, giving it a service ceiling of nearly 10,000 meters, a maximum speed of 250 km/h, and a cruising speed of 150 km/h. The deployment of the Milkor 380 is expected to significantly bolster the capacity and capabilities of law enforcement units, defence teams, and border patrol units in South Africa. As the country takes the lead in utilising this technology, there is a growing anticipation of further rollouts. In Africa, there has been a noticeable rise in the deployment of unmanned drones for surveillance by insurgents, particularly in regions like the Democratic Republic of the Congo (DRC) and Mozambique’s Cabo Delgado Province. This trend has prompted military strategies to incorporate UAVs into active operations, primarily for surveillance. The African Defence Forum reports that Nigeria, Cameroon, Kenya, Djibouti, the DRC, Mozambique, and South Africa are the largest military deploying countries of this technology. Nigeria, for instance, recently acquired the Wing Loong II from China, following its two-year operation of the ADCOM Yabhon Flash-20 unmanned aerial vehicle (UAV) made in the United Arab Emirates. Other African nations, including Botswana, Côte d’Ivoire, Sudan, and Zambia have also integrated mid-sized drones into their military fleets, as indicated by PAX, a research firm. In 2022, the UN Counter-Terrorism Committee adopted the Delhi Declaration to counter the use of new and emerging technologies for terrorist purposes, including unmanned aerial systems. The committee highlighted the importance of “furthering down the supply chain by focusing on players such as retailers and distributors.” “This will enhance their record-keeping of sales of sensitive goods and multiple application technologies used in the construction of UAS, so that suspicious consignments and sales can be more easily detected,” said Jonah Leff, the Director of Conflict Armament Research. The launch of the Milkor 380 is expected to elevate South Africa’s UAV industry to new heights, given its remarkable technological advancements and capabilities. Notably, five units of the UAV for domestic use are already in the pipeline. An increase in African defence budget allocations is facilitating governments to easily deploy these technologies in a bid to revamp their domestic military capabilities. For example, Nigeria has significantly increased its military budget allocations, with a 56% rise between 2021 and 2022, aiming to counter and potentially eliminate Islamic extremist groups within the country. The Stockholm International Peace Research Institute monitoring global peace issues reports that military expenditure in Africa has grown by an average of 2.5% between 2012 and 2021, reaching US$20.1 billion. Flight trials and sensor integration will continue throughout 2023, with the first public demonstrations of the Milkor 380 anticipated during the African Aerospace and Defense Exhibition, scheduled for September 2024.
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- October 27 2023
56% of earners pay black tax every month, according to Piggyvest 2023 savings report.
Fintech company, Piggyvest released a savings report for 2023. Across two months, the company surveyed about a thousand Nigerians from different backgrounds, age groups, and genders to learn about their money habits. Since its launch in 2016, Piggyvest has been the most popular savings and investment app in West Africa. The company now has 4.5 million users and has paid out over ₦1.1 trillion ($1.42 billion) to users. The report covers various aspects of personal finance like borrowing, saving, and spending habits among others. According to the company’s CMO, Joshua Chibueze, this is the first of what is expected to be an annual tradition. Here are the five interesting things we learned from the report: 1. Food is the largest personal expense for most Nigerians. Piggyvest report Respondents were asked to share their largest personal expense and 87% of all respondents disclosed that they spend most of their income on food and groceries. This is followed closely by utility bills which was the second largest expense. Within the past year, poor government policies have sent food inflation in Nigeria rocketing to 26.7%, a 7.34% increase from the previous year’s 19.34%. 2. Black tax remains a challenge for the majority of income earners. Piggyvest report According to the report, 56% of income earners pay black tax every month, compared to the 27% who only pay occasionally. To provide more perspective, 71% of respondents earn about ₦249,000, with only 29% earning above ₦250,000. According to one of Piggyvest’s respondents, 70% of her earnings have been sent home to her mom since she started working. “My black tax kept increasing as my salary increased,” she shared. 3. “Japa” is the third most common savings goal on Piggyvest Piggyvest report Nigeria has witnessed a mass exodus of young people in the past three years, and that doesn’t seem to be stopping soon. After rent and education, the third most common reason for saving according to respondents is to leave the country. When asked about their major plans, 49% of respondents said it was to relocate to a new country. Of the 49%, 57% were Gen-Z (below 26) while 49% were millennials. 4. Majority of the population wants to establish businesses Piggyvest report 58% of the respondents are saving to start their own businesses in the next five years. Interestingly, unlike other saving plans like relocating or retirement funds, this one is ubiquitous to every age group. Small and medium businesses are the backbone of Nigeria’s economy as they contribute almost half to the country’s GDP. There are about 40 million SMEs in the country so far, with 67% of them owned by young people above the age of 40. 5. Lending apps are the second most common destination for loans With the high inflation rate that has rocked the Nigerian economy in the last eight years, it is not surprising that a good number of Nigerians have to borrow to complement their livelihoods. According to the report, one in three people is currently in debt, with Generation X and millennials being the most likely to be in debt. While 43% owe their family members or friends, 26% are in debt to a loan app, which is more than the 24% who owe a bank. While there have been concerns raised about the ethics of loan apps in Nigeria, they remain one of the most accessible means of credit in the country.
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