- October 27 2023
How the Meta Ray-Ban smart glasses can help curb vices in Africa
Technology constantly shapes our lives, and innovation sometimes holds the key to addressing societal challenges. One such innovation is the Meta Ray-Ban smart glasses, which, while primarily designed for capturing life’s moments and enhancing social media experiences, can also play a significant role in curbing vices prevalent in Africa, such as sexual abuse, police brutality, extortion, and more. Let’s explore how these glasses can be a powerful tool in promoting safety and accountability in the region. Capturing evidence with a 12MP camera One of the most valuable features of Meta Ray-Ban smart glasses is the powerful 12 MP ultra-wide camera. This camera’s high-quality photo and video capabilities can serve as a discreet tool for documenting and exposing incidents of police brutality and other injustices. The glasses empower users to capture real-time evidence, reducing the ability of wrongdoers to act with impunity. Hands-free communication for reporting The glasses also offer a hands-free communication feature that allows users to make calls and send messages using voice commands. This feature can be invaluable in situations where individuals need to discreetly report instances of extortion, harassment, or sexual abuse. With the ability to contact authorities or trusted individuals without drawing attention to themselves, victims can seek help when they need it most. Meta AI for Information and Assistance Meta AI integration provides users with a personal assistant that can offer information and control features using voice commands. This can be especially useful for those seeking information on their legal rights, emergency services, or guidance on how to deal with abusive situations. The AI can help users access the right resources quickly and discreetly. Open-ear audio for safety and awareness The discreet open-ear speakers in the smart glasses enhance audio quality without isolating the wearer from their surroundings. This feature ensures that individuals remain aware of their environment, a critical aspect of personal safety in regions where vigilance is necessary to avoid threats and vices. One major advantage of the Ray-ban Meta Smart glasses One remarkable advantage of Ray-Ban Meta smart glasses is their compatibility with prescription lenses. If you require prescription eyewear, you can easily incorporate this essential feature into your Meta glasses. There are two convenient options for obtaining Ray-Ban Meta smart glasses with prescription lenses: you can order a complete pair directly from Ray-Ban.com, or you can visit participating LensCrafters stores to have prescription lenses added. It’s worth noting that for warranty purposes, it is recommended to have prescription lenses added at certified LensCrafters locations. This outstanding feature ensures that the Meta glasses can cater to your visual needs, security concerns, and your tech-savvy lifestyle. What you need to operate the Ray-Ban Meta Smart glasses To set up and use your Ray-Ban Meta smart glasses, ensure you have the following prerequisites in place: 1. Compatible smartphone You’ll need a smartphone with a recently released operating system. For Android users, this means Android 10 or above, and for iOS enthusiasts, iOS 14.4 and above. Don’t forget to enable location services on your smartphone. For a comprehensive list of compatible devices, refer to the official documentation. 2. Wireless internet access A reliable wireless internet connection is essential to unlock the full potential of your Meta smart glasses. It ensures seamless connectivity and access to various features. 3. USB-C charging cable and plug While the glasses come with their own charging cable, you may need a USB-C charging cable and plug if you prefer charging from a power outlet. Make sure you have these handy to keep your glasses powered up. 4. Valid meta account To make the most of your Meta experience, you’ll need a valid Meta account. Ensure that you have your account set up and ready to go. 5. Meta view app The Meta View app is your gateway to unlocking the capabilities of your smart glasses. You can download it from your device’s app store. Install the app to enable seamless communication between your glasses and smartphone. Where to buy the Meta Ray-Ban glasses The smart eyewear isn’t yet made available for sale in Africa. However, you can purchase the Ray-Ban Meta smart glasses in the United States, Canada, the United Kingdom, Ireland, Austria, Belgium, France, Italy, Spain, Germany, Finland, Norway, Denmark, Sweden and Australia, through certified Meta retailers and the official Meta website. They are also available at Ray-Ban stores and certified dealers, both online and in-store. There are several styles available for the glasses, and the variants also mean they have different prices. But you’ll get one between $275-$400. Final thoughts on the Meta Ray-Ban smart glasses The only downside to these smart glasses is the inability to work independently of a smartphone. Nevertheless, the Meta Ray-Ban smart glasses, with its impressive features, aren’t just about fashion-tech, but a tool that can empower individuals in Africa to tackle prevalent vices head-on. By facilitating discreet communication, capturing evidence, and providing access to information, these glasses can contribute to a safer and more accountable society.
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- October 27 2023
TechCabal Daily – Ugandan traders to fight Facebook ban
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Inflation is eating everything up—especially everyone’s competitive salaries. In Nigeria, inflation is at 24% and in Ghana, it’s at a whopping 40%. The prices of everyday items are rising faster than anyone can keep up with. Can fintech solutions help? Join us today at 11 AM (WAT) for a discussion with Timi Odueso, senior editor at TechCabal, and fintech experts Seçkin Çağlın, Emre Ertan, Peter Onu and Yasmine Mohamed Henna on how to use technology to protect your money from inflation and build a secure financial future. Register now. In today’s edition Why Patricia’s trustee withdrew interest Ugandan traders want to sue the government Botswana wants to incorporate tech into its diamond industry UK’s online safety bill becomes law Funding tracker The World Wide Web3 Job Opening Startups Patricia’s trustee withdraws interest Patricia’s CEO, Hanu Fejiro Patricia is planning to refund customers’ funds even with its escrow trustee, DLM Trust, is backing out. The crypto firm had earlier partnered with DLM Trust to disburse $2 million in customer funds that it lost to a hack.DLM, however, backed out of the deal, citing “multiple breaches in the terms and conditions of agreement and trust.” A source close to the situation attributes the DLM Trust withdrawal to the recent media backlash. The withdrawal announcement was made barely 24 hours after Patricia announced the partnership. A blindsided withdrawal: Per Patricia, DLM Trust’s withdrawal was not previously communicated to the crypto firm. Patricia told TechCabal that it observed all due processes, including fulfilling its financial commitments to consummate the contractual agreement. Zoom out: It remains to be seen whether Patricia is on the lookout for a new escrow trustee. The firm now has a much bigger task in convincing its customers that they would get their funds back. 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. Social media Ugandan traders threaten to sue government over Facebook closure Uganda’s Facebook shutdown is threatening its SMEs. And now, a group of traders are threatening to sue the Uganda Communications Commission (UCC) if it does not reopen Facebook within two weeks. Why? The notice states that the traders have lost approximately 3,874,000 clients who were active Facebook subscribers in Uganda at the time of the closure, along with 2.9 billion potential clients in the global market. Per Luyimbazi Nalukoola, the lawyer representing the traders, the continued closure of Facebook has resulted in significant financial losses for its members, estimated at around UGX 66 billion ($17.5 million), it also extends to their supply chain, affecting 650 boda bodas, 88 lorries and pickups, and 180 taxis. ICYMI: Facebook shutdown a network of accounts linked to Uganda’s information ministry in January 2021, accusing them of “coordinated inauthentic behavior” in the public debate ahead of the country’s 2021 presidential election. The Ugandan government responded by shutting down all social media sites and blocked access to the internet on January 13, 2021, one day before the presidential elections. However, it restored access to the internet and other social media platforms on January 18, 2021, but Facebook remained blocked. Ugandans now use VPNs to access Facebook, while many have stopped using the platform altogether. The big picture: Social commerce in Africa and the Middle East is projected to reach $41.9 billion by 2028, and already, 67% of traders across many African countries are using social media for their businesses. Platforms like Facebook help traders sell more, so it’s understandable why these Ugandan traders are ready to fight. But will the Museveni-led governement—which has often been accused of using oppressive means to stifle opposition—settle this amicable? The evolution of agency banking in Africa In this longform Decode Fintech piece, Paystack explores agent networks in Africa, how they converge with SMEs, and what the future of agency banking means for how money moves across the continent. Read the blogpost. Economy Botswana to leverage technology to boost diamond industry President Mokgweetsi Masisi of Botswana Botswana is betting on tech to advance its diamond industry. The country’s president, Mokgweetsi Masisi, at the ongoing FACETS Conference in Botswana emphasised the need for diamond-producing nations like Botswana to incorporate technology into the sector to foster sustainability. A silver diamond bullet: Masisi said the use of innovations such as drone-assisted surveying to advanced water management systems could help preserve the world for generations to come. The President also said the use of blockchain technology for diamond tracing could could make the diamond supply chain more transparent. Zoom out: President Masisi’s speech shows the country’s vision in scaling its Diamond’s industry. Botswana is the world’s largest diamond producer by value—it produces over 25% of the world’s diamonds by value—and its diamond industry accounts for over 30% of its GDP. The government in March 2023 bought a 24% Stake in HB Antwerp, a diamond cutting and technology company based in Antwerp, Belgium. The company houses some of the finest diamond processing technology including an automated diamond polishing robot, a blockchain-based diamond tracker, and a stereo microscope for diamond observation. Regulation UK Online Safety Bill becomes law Tech firms in the UK will have to take more responsibility for the content on their platform. In the UK, the government has passed an Online Safety Bill that places immense responsibility on tech giants to ensure children’s safety in the digital world. What does the Act say? Social media platforms must now take proactive measures to prevent illegal and harmful content, including content promoting self-harm, terrorism, and revenge pornography, from appearing on their sites. They must also ensure that age limits are enforced and that children are protected from accessing harmful and age-inappropriate content. Furthermore, they must be more transparent about the risks and dangers posed to children on their sites and provide parents and children with clear and accessible ways to report problems online when they do arise.
Read More- October 26 2023
Investors ask for logical valuations from Nigerian startups
On the second day of the NITDA Digital Conference investors asked for logical valuations and more local involvement in Nigeria’s VC industry. On Wednesday, at the NITDA Digital Conference, Kashifu Abdullahi, the director general of NITDA, shared that the tech ministry is using a Massachusetts Institute of Technology research framework to determine how to collaborate with the private sector. “Our major strategy is resetting our mindset and what I mean by resetting mindset is that we need to remove the dichotomy or demarcation between the government and private sector,” Abdullahi said. Abdullahi also referenced how the current tech minister, Dr. Bosun Tijani, comes from the private sector. “In an ecosystem, we need to have collective ownership,” he said. Nigeria’s tech ministry has been on an increased acknowledgement drive in the months following Bosun Tijani’s appointment. Since the minister’s appointment in August, the ministry has announced a plan to train 3 million tech talents and a ₦5 million artificial intelligence research grant for 45 startups. Both programmes are organised by NITDA and Abdullahi shared the agency’s plans for these incentives. “We intend to place 1.5 million (fellows) in the local ecosystem, and [for the other] 1.5 million, give them the opportunity to live in Nigeria and work for international organisations or the global ecosystem,” Abdullahi said. Investors ask for logical valuations and increased local participation At a panel session at the conference, Janade Du Plessis, the managing partner of Launch Africa Ventures, a prolific VC firm in Africa, advised Nigerian startups to base their valuations on “logic”. He added that founders should not base their valuations on Nigeria’s population but rather on “business ratios.” “If you split Nigeria out across the entire continent in our portfolio, the average valuation is $5.5 million. When you add Nigeria, that goes up to $12 million,” Du Plessis said. “My advice to founders is: what are you basing that on and have a logical argument when you talk to investors. Whether it be revenue multiples or you have a certain path for your LTV. I often see that in this ecosystem, it seems to be a train to have a high valuation,” he added. Satesh Melwani, an investor in African startups, said that there needs to be more local investment in Nigeria’s VC industry. He said this can help the Nigerian tech ecosystem survive the global VC downturn. “I think that there has to be a real education for Nigerian investors to get them [to invest in Nigerian startups],” he said. Melwani also advised startups to make proper corporate governance a solid part of their strategy to raise money, as investors expect more information from startups. “The market is evolving and changing to a situation where people are expecting real corporate governance.”
Read More- October 26 2023
SA startup WhereIsMyTransport is shutting down, cites lack of funds
SA mobility startup WhereIsMyTransport is shutting down after failing to raise new funding. South African mobility startup WhereIsMyTransport is shutting down, citing an inability to raise new funding. Founded in 2016 Devin De Fries, the startup raised over $27 million in funding and had 140 employees. “Having failed to raise our round, we’ve stopped operations. Thank you to the investors who backed us along the way – without you, our work would not have been possible. Thank you to the team who gave the best of themselves to support our mission,” wrote De Fries. WhereIsMyTransport mapped formal and informal public transport networks and used the data to improve the public transport experience, claiming to make commuting safe and accessible. The startup licenced some of its data to governments. South African mobility startup WhereIsMyTransport raises $14.5million for expansion In May 2022, the startup announced that it had mapped 50 cities across Africa, Latin America, Southeast Europe, and Asia. Some of its clients included the World Bank, which used its data to examine access to job opportunities via public transport in 12 African cities. The startup was also an alumnus of the now-defunct Naspers Foundry, having raised $3 million from the fund towards its $14.5 million Series A extension. Its other investors included Cathay AfricInvest Innovation Fund, Japan’s SBI Investment, Wuri Ventures, Capria Ventures, Nedbank, Global Innovation Fund, Goodwell Investments, Google and Toyota Tsusho.
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- October 26 2023
Updated SRD R350 payment dates for October 2023
In an effort to provide clarity and assistance to clients, the South African Social Security Agency (SASSA) has released the updated payment dates for October 2023 for those approved for the R350 SRD SASSA payment. The SASSA body understands the importance of timely and predictable payments for their clients, and thus, are committed to keeping them informed about the latest developments. New SRD SASSA payment dates Payments for clients who have been approved for the month of October 2023 will be processed from October 25 to October 31, 2023, for the R350 SRD SASSA payment. SASSA has streamlined its payment schedule to occur during this specific week, ensuring that recipients can anticipate their funds with confidence. This approach is designed to improve the efficiency of the payment process and make it more convenient for beneficiaries. All SRD clients are to stay informed and monitor their payment status diligently for the R350 SRD SASSA payment. You can do so by visiting the SRD website, where you will find the exact date when your payment will be reflected in your bank account. The website portal provides you with real-time updates and ensures that you are well-prepared for the arrival of your funds. Note to SRD SASSA beneficiaries It’s important to note that after the processing of payments from October 25 to October 31, it may take approximately 2-3 business days for the funds of the R350 SRD SASSA payment to reflect in your bank account. Factors such as your banking institution and other logistical considerations can impact the exact timing of fund availability. Therefore, SASSA advises clients to plan accordingly and not be alarmed if the funds do not appear in their accounts immediately after the processing period. Final thoughts These updated payment dates for October 2023 are part of SASSA’s ongoing effort to provide clarity, predictability, and reliability in their services for the R350 SRD SASSA payment. SASSA remains dedicated to serving their clients with the utmost professionalism and care. For further information and inquiries about the R350 SRD SASSA payment, please visit the SASSA website or contact their helpline for assistance.
Read More- October 26 2023
Nigerian Fintech Week Day 2: How failure drives innovation in Nigerian fintech
Written by Stephen Agwaibor In the keynote address on the second day of the Nigerian Fintech Week, the message was clear: despite challenges, failure is a “learning opportunity” in the fintech sector. The keynote speaker, ‘Deremi Atanda, MD of Remita, emphasised the importance of failing fast and viewing it as an opportunity for rapid learning and innovation. He highlighted the need to embrace experimentation, foster a risk-tolerant culture, and reframe failure as a chance to learn. Atanda reinforced his point, stating, “Today’s big names leveraged their failures. Remita, once a failed project, now processes over $50 billion and millions of transactions, thanks to our tier-one licence from a failed project in 2005, our bid for the pension project.” He emphasised the capacity to innovate despite setbacks, urging fintech companies to accept their failures, learn from them, listen to feedback, assess market conditions, and build resilience. Reimagining AI for the future of payments In another session, Premier Oiwoh, MD and CEO of the Nigeria Inter-Bank Settlement System (NIBSS), discussed the future of payments with AI. Nigeria’s progress in areas like mobile penetration (around 89%) and a 64% financial inclusion rate has led to growth in e-commerce, with a forecast of digital payments reaching $24 billion by 2027. To make payments seamless and enhance open banking inclusivity, Oiwoh stressed that AI will play a pivotal role. Aiwoh outlined AI’s applications in payments, including improving security and fraud protection, AML features, providing credit and virtual loans, algorithmic trading, process automation, and personalised customer experiences with humanoid cast services. However, challenges in AI adoption exist, such as the desire for real human interactions, risks of malicious actors exploiting AI systems, and data quality concerns. To solve these challenges, Oiwoh noted, requires multi-factor authentication, improved regulations, continuous AI training, and efficient data warehousing. Aiwoh emphasised that data should complement AI, not compete with it. The fireside session, led by Tiwa Osazuwa of AELEX, discussed AI regulatory frameworks in Nigeria. While some guardrails like the Nigeria Data Protection Act (NDPA) exist, there is a need for more comprehensive regulation regarding intellectual property, data protection, automation, and ethical issues related to the use of AI. The panel highlighted the immense potential of AI but stressed the importance of oversight to prevent misuse. Another takeaway point from this discussion was that it’s still early days, with a call to action for African tech enthusiasts foraying into the AI to not just dwell on the downstream but aim higher as there’s still opportunity for Africa to position itself as a leader in this fast-growing niche. Other matters relating to generative AI and presentations highlighting AI’s role in the creative economy—such as the creation of music—were on display, providing a glimpse into the endless possibilities available with AI that extend beyond fintech. Other highlights In a session on economic inclusion and fintech’s role in bridging the gap, led by Funsho Oyelohunnu, CEO of Horizonpay, embedded finance was highlighted as one way to integrate financial services into non-financial sectors, fostering economic inclusion. By embedding features like payments, lending, rent, insurance, and savings for underserved populations, more people can access services previously out of reach. They noted that trust issues in traditional banking still contribute to a high unbanked population despite mobile phone ownership of 81% of adults population. Fintech platforms were tasked with education and awareness creation, developing diverse products for marginalised groups, and instituting aggregator structures in remote areas. Partnerships with regulators to onboard unbanked individuals and trust-building through safety nets to reduce charges for low-income earners were recommended. The conference also touched on fintech’s future roadmap, featuring input from consulting firms like McKinsey, Deloitte, KPMG, and EY in a fireside session led by Jameelah Sharrief-Ayedun, CEO of CreditRegistry. The state of VC funding on the continent was discussed, with a forecast of reduced funding in the near to medium term due to economic challenges, policy flexibility, the Silicon Valley Bank’s crash, and its impact on the fintech ecosystem, all of which, they revealed, contributed to a 49% dip in funding year on year. Despite these challenges, the panel expressed optimism, noting that pockets of fresh investment signal a positive long-term outlook, hinging on efficiency, lean practices, and policy nudges to regulators to attract foreign direct inflows to Nigeria and the broader African continent.
Read More- October 26 2023
Botswana looking to technology to boost diamond industry, says president
Botswana is the largest diamond producer in the world. But with global advancement in innovation, President Masisi has called on diamond-producing nations to invest in technology to ensure the sustainability of the industry. The President of Botswana, Dr Mokgweetsi Masisi, has stated the need for diamond-producing nations to incorporate technology into the sector to foster sustainability. President Masisi was speaking at the FACETS Conference in Gaborone, Botswana. Botswana is the world’s largest diamond producer by value. The FACETS Conference was initiated by the Antwerp World Diamond Centre (AWDC) in 2022 to provide a platform for inclusive dialogue between industry players from across the value chain to address challenges and opportunities set to drive the industry in the future. Delivering his address, Masisi stated that diamond-producing nations should invest in research and development efforts that would minimise the impact of diamond mining on the environment. “From drone-assisted surveying to advanced water management systems, these innovations are not just investments; they are our commitment to preserving the natural world for generations to come,” he said. Additionally, to tackle the problem of conflict diamonds finding their way into markets, President Masisi stated the need to employ blockchain technology for diamond tracing. “Blockchain technology, with its immutable ledger, can provide consumers with the guarantee that their diamonds have been ethically sourced,” he added. “Emerging technologies, such as nanotechnology, [also] hold promise in diamond processing. Nanodiamonds, tiny diamond particles, have a range of applications from medical imaging to quantum computing.” Early this year, President Masisi’s administration announced plans to purchase a 24% stake in Belgium-headquartered diamond manufacturer HB Antwerp which describes itself as “Antwerp’s savoir-faire with the power of technology to create a whole new ecosystem for the natural diamond trade”. Some of its proprietary technologies include an automated diamond polishing robot, a blockchain-based diamond tracker, and a stereo microscope for diamond observation.
Read More- October 26 2023
Shipbubble wants to help Nigerian e-commerce deliver everything, everywhere, on time
Shipbubble is eliminating logistics problems for e-commerce in Nigeria while helping local businesses sell internationally with ease. As Nigeria’s small and medium-sized enterprises (SMEs) continue to grow, contributing about 48% of the GDP, Nigerian entrepreneurs face the pressing challenge of delivering goods to customers on time and well. The logistics challenges range from concrete problems like the absence of infrastructure to abstract ones like lack of trust, or tardiness on the part of delivery companies. Shipbubble, a logistics and e-commerce aggregation company, is solving this problem. Co-founded by Jordan Ajibola, the CEO, and Ayodeji Abon, the CTO, Shipbubble is creating a one-stop API integration that allows e-commerce businesses to harmonise all their logistics needs on one platform, eliminating the need for multiple logistics partners. The e-commerce industry is projected to reach $3.64 trillion in revenue by the end of 2023. Only $9.02 billion (0.24%) of that amount is projected to be in the Nigerian e-commerce space. With a pressing logistics problem, Nigeria may fall behind, or fail to boost revenue in the e-commerce sector. Ajibola and Abon sat with TechCabal at our office in Lagos to demonstrate how Shipbubble works. Ajibola was quick to mention that Shipbubble is helping companies “locate the perfect logistics partners based on cost, proximity, and performance, allowing for logistics partner assignment without the hassle of text messaging”. A 2021 World Bank report notes that the cost of moving goods (per unit distance) domestically in Nigeria is about 5.3 times higher than in the US. Meanwhile, Shipbubble claims its aggregated platform will allow traders to have options to choose from a wide range of affordable companies that have been vetted for quality service delivery by the company, cutting costs and earning trust in the process. This is in addition to creating a tracking page for each business, allowing traders and customers to follow the goods from start to finish accurately. Abon says an easier way to think of what Shipbubble is doing today is to think of Paystack and other payment aggregators, and how they helped e-commerce businesses to sell faster by supporting online stores with instant accounts where payments are validated within seconds. “Shipbubble is like that, but for logistics,” he says. Shipbubble’s 10,000 steps to expertise Ajibola and Abon built the Minimum Viable Product (MVP) in 2021, fully transitioning from an earlier version called GetDelivery to Shipbubble by May 2022. The founders then participated in the Startup Wise Guys accelerator program from October 2022 to March 2023, further honing their expertise. Shipbubble has since secured support from angel investors and venture capitalists, including Microtraction, a venture firm that invests in pre-seed startups. As of October 2023, ₦267 million worth of products have been shipped via Shipbubble. But they’re still far from their destination. One of the fundamental aspects of Shipbubble’s approach, according to Ajibola, is “helping businesses scale internationally and having more options”. To do this, they need to onboard more logistics companies internationally; this will need more time and more money. The founders are confident that their product will attract the right funding to scale and bring in more partners. Esther Ulueme, 28, a Nigerian entrepreneur spends her nighttime tracking orders and her daytime talking to clients for her skincare and perfumery brand, leaving her little space for adequate rest and to scale. Ulueme is optimistic about Shipbubble’s solution. “Putting logistics companies under an umbrella like Shipbubble’s will keep them in check,” she tells TechCabal over WhatsApp. “You won’t have to worry much because you’re sure the logistics companies under Shipbubble would have gone through checks and won’t tamper with or lose your product.” Abon assures business vendors like Ulueme that “[Shipbubble’s] streamlined approach means that entrepreneurs can set up e-commerce ventures with ease with Shipbubble, and Shipbubble will handle everything from inventory management to sales and distribution.” He is confident that this approach will help small businesses scale faster with fewer resources. Ulueme, who is keen on expanding globally, tells TechCabal that knowing that Shipbubble has logistics companies that can deliver outside Nigeria will help vendors sell internationally without stress.
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- October 26 2023
Investors not keen on funding northern Nigerian startups, new study reveals
The Nigerian tech ecosystem is one of the fastest growing in the world as more founders have built innovative solutions to some of the most pressing issues across various sectors from finance to agriculture, logistics and e-commerce, among others. Between 2015 and 2022, about 400 tech startups in the country raised a combined sum of over $2 billion. This is higher than funding raised in any other country in Africa. So far, the Nigerian tech ecosystem makes up about 30% of funded startups on the continent. While this growth is impressive, it has so far materialised mostly in Lagos state, southwest Nigeria, where most startups and corporate businesses are headquartered. Founders in other parts of the country struggle to build thriving startups like their counterparts in the southwest. This has been due to a variety of reasons, ranging from poor government policies to lack of capital. In October, TechTank Labs (TTL), a venture studio in Kano, released a report on the state of the tech ecosystem in northern Nigeria. The aim was to identify the challenges and opportunities that startups and stakeholders face in the region in order to provide actionable insights and recommendations for a more vibrant and sustainable ecosystem. Challenges facing startups in northern Nigeria Image credit: TT Labs Between 2017 and 2021, Nigeria’s population surged by 15.01 million, with the north alone contributing to 68.7% of this number. Current estimates place the population of northern Nigeria at approximately 128 million, 58% of the entire country’s populace. This population size offers startups opportunities to scale as there is already a large market available for products and services. Regardless, this has not been the case as the majority of startups in the region still struggle due to a number of challenges. Lack of access to funding stands out as the most pressing challenge for startups in northern Nigeria. There are not enough VCs in the region, and founders have a difficult time attracting funding from outside the region as investors are typically wary of investing in startups outside Lagos. Also, of all the startups surveyed, 46 reported a shortage of skilled workers. According to Maryam Shittu who is an executive at Nigeria Sovereign Investment Authority (NSA), the biggest challenges facing the tech ecosystem in the north are closely tied to the availability of digital talent and funding. “Without skilled talent and the necessary financial backing, it’s difficult for the ecosystem to grow and compete on a national, let alone global, scale. This is reflected in our investment activities; we have not yet invested in any startups from the north-east, northwest, or north-central regions,” she shared. Idris Ayo Bello, the founder of Loftylnc Capital, shared that the company has a portfolio, Afropreneurs Fund 3, which has so far invested $500,000 into northern Nigeria. Opportunities for startups in northern Nigeria For the report, TTL surveyed 188 startups across diverse niches including agriculture, health, education, and finance. Of the startups sampled, 15% generated over ₦5 million ($6,200) in the last fiscal year, with some exceeding ₦500 million ($628,000) and even ₦1 billion ($1.2 million). The most profitable sectors in the region are fintech, edtech and agritech, with over ₦500 million ($628,000) in revenue. While the majority of these startups are currently profitable, only 5.9% of founders surveyed reported having access to grants or VC funding. So far, there are 39 key ecosystem entities operating in northern Nigeria, including seven VC firms, seven incubators, and 25 innovation hubs spread across different states, with notable concentrations in Kano, Abuja, and Kaduna. These organisations, however, still have funding problems as they do not have enough for all startups in the 19 states that form the region. VC firms and tech hubs in northern Nigeria 1. Agriculture and Manufacturing Agricultural activities in Nigeria are more widespread in the north, due to land availability and favourable soil and climate conditions. The north has more smallholder farmers than any other part of the country, which presents a notable opportunity for startups to leverage technology to enhance agricultural practices, streamline supply chains, or improve food processing. Investing in agri-tech solutions that address local challenges can yield significant returns. According to the report, some of the opportunities exist in areas like: – Precision agriculture – Remote sensing – Agricultural drones – Smart irrigation systems – Crop insurance and agricultural extension services 2. Edtech With the global shift towards online education, edtech startups in northern Nigeria have the potential to reshape the educational landscape. Investing in platforms that offer localised content, teacher training, or innovative learning tools can be highly beneficial. Similar to the agricultural sector, the edtech space also has an outlier with over X1 billion in revenue. 3. Fintech Despite its large population, northern Nigeria has the lowest financial inclusion rate in the country, with only 34% and 24% of adults in the north-east and north-west, respectively, having access to bank accounts. There is an increasing need for more innovative tech-enabled financial solutions in this region. So far, fintech startups in the region have aimed to bridge the financial inclusion gap, providing services like mobile banking, peer-to-peer lending, and digital payments. Some of these startups, like Sudo, have done revenues as high as ₦500 million ($628,000), according to the report. Northern Nigeria has a strong informal economy which is also an opportunity for startups and investors. A Central Bank of Nigeria (CBN) survey in 2021 revealed that the region had the highest rate of cash transactions in the country, with over 70% of all POS transactions paid in cash, compared to 55% for the rest of the country. Other opportunities in the financial space include: – mobile payments – microfinance – digital insurance solutions – investment platforms – blockchain technology applications The tech ecosystem in northern Nigeria has the potential to become one of the most burgeoning ecosystems in the country, but not without the active participation of all key stakeholders. There are huge gaps for government participation and investors to fill in building the ecosystem, and until
Read More- October 26 2023
Patricia insists on November repayment date after DLM Trust abruptly ends partnership
Patricia inisists it will repay customer funds after DLM Trust abruptly ended its partnership with the crypto company. Nigerian crypto company Patricia has said its plan to repay customer funds will proceed despite the withdrawal of its escrow trustee, DLM Trust. On Tuesday, Patricia announced that it had engaged DLM Trust to handle the repayment of $2 million in customer funds that it lost to a hack. One day after that announcement, the SEC-licensed trust company said it had ended all engagements with Patricia and would not be proceeding with the disbursement of refunds. The company cited “multiple breaches in the terms and conditions of agreement and trust.” According to a person with direct knowledge of the matter, DLM Trust abruptly withdrew from the partnership due to media backlash. Patricia told TechCabal it was shocked by DLM Trust’s sudden decision to terminate the partnership without prior notice. The crypto company maintained that it observed “all due processes, including fulfilling our financial commitments to consummate the contractual agreement.” “It is therefore astounding to us that not only have DLM Trustees chosen to renege on our agreement, but that they failed to issue us a notice or extend the basic courtesy of a prior discussion, in stark disregard for the clearly spelled termination clause in our contract. We not only categorically reject this false claim, but we also challenge DLM Trustees to substantiate the allegations,” Patricia said in the statement. DLM’s about-face comes two days before Patricia’s virtual town hall meeting to discuss the partnership with its customers. This turn of events means that Patricia will have a harder time convincing frustrated customers who want access to their money after the trading platform lost $2 million to a hack last year. Since April, customers have been unable to withdraw funds from the Patricia Plus app which triggered a bank run. Patricia scrambled to control the panic by freezing withdrawals, blocking customers from accessing their assets. The company’s attempt to salvage the situation was to unilaterally convert its customer assets to tokens, an action it took without users’ consent, which raised legal concerns. While Patricia has held town hall meetings and shared several plans around repaying customers, it has been met with skepticism. More recently, some customers started discussing plans to stage peaceful protests to demand refunds of their withheld funds.
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