Leatherback cofounder and CEO Ibrahim Ibitade steps down, Toni Campbell named interim CEO
The CEO and co-founder of cross-border payments startup Leatherback, Ibrahim Ibitade, has stepped down after five years at the helm, the company told TechCabal. “Under Ibitade’s guidance, Leatherback expanded its global presence and established itself as a trusted partner in cross-border financial services,” the company said in a statement. “The company is grateful for his dedication and wishes him the best in his future endeavours.” Leatherback did not share a reason for Ibitade’s exit. Toni Campbell, a managing partner at Kinfolk Venture Capital, has been named interim CEO. “I’m excited to lead Leatherback through this pivotal moment,” said Campbell. “We have the opportunity to redefine global financial solutions, and our mission remains clear: to empower seamless movement of money across borders, while strengthening trust and delivering exceptional value to our customers.” Adedayo Amzat, Group Managing Director and CEO of Zedcrest Group, Leatherback’s lead investor, will join the company as a non-executive director. “With this experienced leadership team, Leatherback is well-positioned to continue its journey as a top player in global financial services, making cross-border payments borderless and more accessible for all,” the statement added. Along with a crop of homegrown cross-border apps, Leatherback had begun pitching itself to African startups as an alternative to Mercury. “With Community Federal Savings Bank, one of our local partner banks in America, we spent two years demonstrating that we have the standard KYC and KYB processes and transaction monitoring process, giving them enough comfort,” the company told TechCabal in July.
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👨🏿🚀TechCabal Daily – The cost of banking
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday! Here’s to the TC Daily reader that gave us a headline suggestion. We see you, Afeez! Apple could stop producing the Vision Pro next month. The device which retails at $3,500 has seen less demand and suppliers have stopped manufacturing some of the components critical to the device. Apple hinted earlier this year that it was making a new and cheaper model which could be set for release by the end of 2025. Nigeria’s biggest banks will spend ₦82 billion on core banking software Nigeria drops charges against Binance executive BasiGo raises $41.5 million The World Wide Web3 Opportunities Banking Nigeria’s biggest banks will spend $50 million on core banking software Image Source: TechCabal “Your organisation is just a vessel to deliver maximum value to shareholders,” goes a joke that I enjoy. Very few companies understand this like Nigerian banks, as they continue to crank out eye-popping profits in an economic downturn. Profits aren’t the only trend in banking. If you use a tier-1 bank (First Bank, UBA, GTBank, Access Bank, Zenith), you may have experienced hair-pulling moments in the last few months. Almost like the banks had a conference and decided to make our lives miserable, several banks coincidentally decided to change their core banking software around the same time. As we’ve said in this article, these changes are big deals from a technical standpoint. We also don’t need to tell you how badly timed they are, given that this is salary week. Instead, we’ll tell you how much these changes cost the banks. One person with direct knowledge of the cost told me tier-1 banks will spend at least $10 million yearly on these core banking software, implying an aggregate spend of $50 million (₦82 billion). That is a lot of billions. Yet, it’s a drop in the bucket for these uber-profitable banks. ₦82 billion is just 1% of the ₦8.52 trillion gross earnings reported by these five banks in H1 2024. However, technology costs go beyond core banking software. There are cloud costs, other storage costs, and a ton of expensive software to spend money on. According to their capital raise presentations, three of Nigeria’s biggest banks—GTCO, Access, and Zenith—already plan to spend up to ₦224.22 billion ($136 million) on technology upgrades. One word: wowza! Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Crypto Nigeria drops charges against Binance executive Image Source: Reuters After nine months in detention, Nigeria dropped all the charges against Tigran Gambaryan, a Binance executive arrested alongside his colleague Nadeem Anjarwalla in February. In one of the most bizarre episodes, Anjarwalla and Gambraryan were arrested after arriving in Abuja to resolve a fracas between Binance and the Nigerian government. While they were given assurances about their safety before travelling to Nigeria, they were arrested almost as soon as they landed, one publication said. In January, Nigeria decided crypto exchanges were the problem after its free float of the naira did not yield the intended results. While volatility was expected, the naira quickly dropped to ₦800 against the greenback. In a particularly tumultuous week in February, it dropped to ₦1,200. The Central Bank argued that Binance, one of the biggest crypto exchanges, encouraged currency manipulation and price fixing. It restricted access to their website and asked Nigeria-based crypto exchanges to delist the USD/Naira pair. While that seemed to work for a while, the naira has only continued its slide since May, trading at ₦1,700 against the dollar at the time of this newsletter. It cast the continued detention of Gambaryan, who was denied bail twice, as even more pointless. Not only was he merely a Binance representative who couldn’t be tried in place of his company, but it was clear Nigeria’s FX issues went deeper than crypto companies. At least two publications have shared that some behind-the-scenes diplomacy involving US Secretary of state Anthony Blinken made Gambaryan’s release possible. It took a while but I’m glad this particularly embarrassing episode is over. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Startups Kenya’s BasiGo raises $41.5 million in series A funding Image Source: TechCabal In yet another sign that electric vehicles are deepening their inroads into East Africa, BasiGo, the Kenyan electric bus maker, has announced a $41.5 million fundraise as part of its Series A round. $24 million of the amount raised is equity funding while $17.5 million is debt. BasiGo, which launched in 2021 allows commercial drivers to use its buses without needing to pay a huge lump sum upfront. Instead, it leases these buses to drivers who pay agreed sums when they hit certain mileage milestones. In 2023, BasiGo drivers covered over 540,000 miles with only 119 buses available, an average of 4,543 miles per driver. That level of stickiness has convinced investors that BasiGo is onto something, and new funding will help the company expand its fleet from 119 to 1,000 buses. Why is e-mobility working in Kenya? Availability of options and operational efficiency. When BasiGo first entered the Kenyan market, it imported electric buses from BYD, the Chinese EV giant. The idea was to study BYD’s technology and replicate it in Kenya. As it grew, it expanded its supplier base to include automakers like BLK, Zhongtong, and Higer. The culmination of its learnings from these bus-makers led to its E9 Kubwa buses which are now assembled at the KVM plant in Thika, Kenya. Additionally, due to the planned routes
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The brightest phone display in the world 2024
When it comes to the best Android phone in 2024, the Samsung Fold 6 stands out as a top contender but the Samsung flagship device is facing a ‘dare’ from Oppo’s former sub-brand RealMe. The RealMe GT 6 is packed with impressive specs, all while touted to offer at an astonishingly lower price than Samsung’s flagship Fold 6, making it a serious challenger in the market. Here’s a breakdown of how they stack up against each other and what sets them apart, considering the major specifications smartphone users look out for. Display: Realme GT 6 miles ahead The Realme GT 6 boasts an industry-leading 6000 nits ultra-bright display, more than double the Samsung Fold 6, which peaks at 2600 nits. This makes the Realme the best Android phone in 2024 for outdoor visibility and vibrant colour reproduction. Realme GT 6: 6.78-inch display, 6000 nits brightness, 120Hz refresh rate, 2160Hz PWM dimming, and a stunning 94.2% screen-to-body ratio. Samsung Fold 6: 7.6-inch foldable AMOLED, 2600 nits peak brightness, 120Hz refresh rate, HDR10+, offering flexibility but lagging in brightness. While Samsung’s foldable screen is innovative, Realme’s clarity and brightness dominate outdoor use and make indoor use more inducing. Power: Realme GT 6 vs Samsung Fold 6 Both phones run on Qualcomm’s cutting-edge Snapdragon processors, but the versions differ. Realme GT 6: Snapdragon 8s Gen 3 (4nm) chipset with a max CPU speed of 3.0GHz. Samsung Fold 6: Snapdragon 8 Gen 3 (4nm), a slightly more powerful 3.39GHz processor. In terms of raw power, the Fold 6 edges ahead. For gaming and high-intensity tasks, Samsung’s superior GPU and multi-core CPU configuration perform slightly better. However, the Realme GT 6 still delivers top-tier performance for its price, making it an excellent contender for the best Android phone in 2024. Cameras: Photography for the professional Both phones come equipped with impressive camera arrays. Yet, depending on your needs, one may suit you better than the other. Realme GT 6: 50MP triple camera setup with a Sony LYT-808 sensor, offering features like 4K video, night mode, and AI enhancements. 50MP main sensor 32MP front camera Samsung Fold 6: A triple-camera system with a 50MP main sensor, 12MP ultrawide, and 10MP telephoto for 3x optical zoom. 4MP under-display selfie camera 10MP cover selfie camera Samsung’s Fold 6 tops the camera chart with its 3x optical zoom, which offers greater versatility. The Realme GT 6 however, offers a solid 50MP sensor, and the Sony LYT-808 delivers sharp, dynamic shots. For selfie enthusiasts, the Realme GT 6’s 32MP front camera outperforms Samsung’s 10MP counterpart. Battery and charging: Speed vs Capacity The Realme GT 6 takes the lead in battery capacity and charging speed. Realme GT 6: 5500mAh battery with a 120W SuperVOOC charger that promises ultra-fast charging. Samsung Fold 6: 4400mAh battery with 25W wired charging and 15W wireless charging. Realme’s GT 6 is ideal for power users who need quick refuelling, making it the best Android phone in 2024 for heavy users. Samsung compensates with wireless charging, but it’s slower compared to Realme’s 120W charge. Build quality: Fold vs Flat Samsung Fold 6: A foldable design that unfolds into a tablet-sized screen. It’s perfect for multitasking, but comes with added bulk and a complex build that may worry those concerned about durability. Realme GT 6: Sleek, flat design with a robust aluminium frame. At 199g, it’s lighter than the Fold 6 and more pocket-friendly. The Fold 6 is ideal for productivity-focused users who want the versatility of a folding screen, while the Realme GT6 prioritises durability and traditional ergonomics. Software: Android 14 with individualised twists Both devices run Android 14, but they offer different UI experiences. Realme GT 6: Realme UI 5.0 offers a smooth, customisable interface, optimised for high-speed performance. Samsung Fold 6: One UI 6.1.1, designed with foldable screens in mind, offers unmatched multitasking, with enhanced productivity features. Samsung’s software is better optimised for larger, foldable screens, while Realme GT 6 focuses on delivering a fast and responsive experience on a traditional smartphone layout. Final thoughts on the best Android phone display 2024 Choosing between the Realme GT 6 and the Samsung Fold 6 depends on what you value most. For display brightness and battery life, the Realme GT 6 is a no-brainer. Its 6000-nit screen and 120W charging make it a powerhouse. If you prioritise multitasking and innovative design, the Samsung Fold 6 wins with its foldable screen and premium productivity features. In 2024, the competition for the best Android phone is intense, but both models stand out, each excelling in areas that matter most to different users. The phone is not yet made available in Nigerian stores, but RealMe is just entering and rolling in its products into the Nigerian market, and affordability for premium features is one of its catch.
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Nigeria’s biggest banks will spend at least ₦82 billion on core banking software
Since September 2024, at least four Nigerian commercial banks have changed their core banking applications. Costs and a need for customisation drove these technological changes. The frustrations of the process—millions of customers unable to access banking services—have been documented, but little has been said about the financial costs of these changes. On October 14, Guaranty Trust Bank told customers it finalised its core banking platform switch to Finacle, weeks after TechCabal first reported the technology change. That switch could cost the bank up to ₦25 billion ($15.3 million) in yearly licence fees, said one person familiar with the matter. Depending on the specifications of the core banking application, Nigerian commercial banks spend at least $10 million each year, the same person said. This suggests that the biggest Nigerian commercial banks—First Bank, UBA, GTBank, Access Bank, and Zenith—will spend $50 million (₦82 billion) annually on their core banking applications. These core banking software costs will amount to 1% of the FUGAZ banks’ half-year 2024 revenues. According to their financial statements, the five banks reported ₦8.52 trillion in gross earnings. With millions of customers to serve across hundreds of banking channels, the need to invest in technology is a no-brainer. Based on their capital raise presentations, three of Nigeria’s biggest banks will spend up to ₦224.22 billion ($136 million) on technology upgrades. GTCO, the holding company of Nigeria’s cost-efficiency leader in commercial banking, planned to spend ₦98.5 billion on technology infrastructure upgrades. Access Holdings, the parent company of Nigeria’s biggest banks by assets, will spend ₦68.62 billion to upgrade and develop technology its infrastructure. Zenith Bank Plc, Nigeria’s largest lender by market capitalisation, will spend ₦57 billion on technology infrastructure. These technology costs cover the core banking applications, customer relationship management (CRM) software, cloud storage, digital banking channels, risk management systems, ATM networks, database management systems, fraud detection systems, electronic document management systems (EDMS), among others. While tier-1 banks can take these costs on the chin, tier-2 banks are keen to manage costs and find avenues for profits. In September 2024, Sterling Bank, a tier-2 Nigerian bank with a market capitalization of ₦115.16 billion, switched to SEABaaS, a new custom-built core banking application. It hopes to recoup some of the building costs by selling SEABaaS to other banks in the near future. The lender previously used T24 built by Geneva-headquartered Temenos AG. Cost considerations drove that switch, two people with direct knowledge of the matter said. Commercial banks often rely on different modules of the core banking software built to their specifications but that service is expensive. These modules include account opening, transaction processing, loan management, and risk assessment. Changing a core banking application also requires several months of planning and internal approvals from a bank’s top management. One person with direct knowledge of the matter said Sterling Bank first discussed the possibility of changing from T24 in 2022 and it took at least seven months before a new core banking application was built. GTBank’s switch to Finacle also began in the fourth quarter of 2023. The process involves setting up a change management plan including a rollback strategy, a series of tests of the new core banking application in different environments, and navigating the bureaucracy of the bank’s leadership, one person familiar with the matter said. “You’d need to get approval from all the different heads of the units in the bank before going live [with the new core banking application]. Sometimes, it turns into a vote,” that person said. It also meant longer working hours for the technology team. Data migration is the most critical part of a core banking application. As one bank engineer described it, “billions of data including customer and transaction details are migrated to the new platform and you can’t afford to mess it up.” The bank cleans and reformats existing data to ensure compatibility with the new system. Banks operate large and complex datasets with several millions of customers and transactions, that process could take weeks and often result in extended downtimes that leave millions of customers unable to access banking services. Since the banks cannot share extensive details of their core banking changes, they risk losing customer trust. For now, banks will need to do more than issuing statements to pacify aggrieved customers
Read MoreNigeria drops charges against Binance executive Tigran Gambryan after months of lobbying
Nigeria’s Federal Government has unexpectedly dropped charges against Tigran Gambryan, a Binance executive arrested in February 2024 and initially charged with tax evasion and money laundering. While the tax evasion charge was dropped, Gambryan and another Binance executive, Nadeem Anjarwalla, were charged with money laundering and illegal currency speculation. However, the Economic and Financial Crimes Commission (EFCC), which was the prosecuting body, dropped those charges this morning, Premium Times reports. “Announcing the withdrawal of the charges, the lawyer said Mr Gambaryan, a United States citizen, was merely an employee of Binance, whose activities he was being prosecuted for,” a Premium Times report said Gambryan and Nadeem Anjarwalla were arrested in February 2024 shortly after their arrival into Nigeria for a meeting with government officials. That meeting was supposed to defuse tensions between Nigeria and Binance after the country claimed the crypto company was responsible for FX volatility after the decision to float the naira. While the naira pared back some of the losses it made against the USD in April, it has since gone back on a slide. While Nadeem jumped bailed in Abuja earlier in the year, Gambryan continued to be held despite pressure from the US government and lobbying from Binance. US lawmakers wrote to the Nigerian government and visited Gambryan, a US citizen in prison. Sixteen American lawmakers accused Nigerian authorities of holding the American citizen hostage and on June 6, Axios reported that a group of former prosecutors and federal agents in the US wrote to US Secretary of State Anthony Blinken, urging him to “step up” efforts to secure Gambaryan’s release. Yet, Nigeria appeared reluctant to budge. Bail applications for Gambryan were rejected twice, even as his health continued to deteriorate. “We found him suffering from the conditions there, as he has malaria and double pneumonia, and he reports that he has lost significant weight. Even worse, he’s being denied access to adequate medical attention,” one lawmaker wrote on X. US lawmakers visit detained Binance executive in Kuje prison
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🚀Entering Tech #77: Old School Tech, New School Impact
Old school tech was cool, and so was Augustine Ugi 23 || October || 2024 View in Browser Brought to you by Issue #77 Old School TechNew School Impact Share this newsletter Greetings ET people Few grass-to-grace stories in tech will make your heart skip with joy like this one. For this edition, we spoke with Ugi Augustine Ugi, a big shot solutions architect partnering with the Cross River state government to build the future of tech in the state. The interview ran for nearly two hours and it didn’t feel like a bore. If you’ve ever wondered what it was like to be a tech bro in the early 2000s—when access to learning was limited, and entry-level courses were expensive—and then go on to build one of the top computer training facilities in Cross River State, you’re about to find out. Emmanuel Nwosu & Timi Odueso Old school tech and where it began “I see myself as an old-school techie who had to understand how modern technology works to compete. Building websites, for example, was done differently ten years ago.” Those were the words Ugi Augustine would use to end the nearly two-hour interview in which he walked me through glimpses of his large life. Born in Obudu and raised in Calabar, Cross River State, Ugi was always curious about how things worked. A career in medicine had appealed to him and his family, but tech won him over, thanks to a lab technician who spurred his interest. Ugi Augustine Ugi MTN had built an IT lab in his high school and one fateful day, this lab technician came around to do some maintenance job on the servers. Ugi, being the lab prefect, had access to the technician and watched closely as the technician worked and answered his barrage of questions, explaining how the systems functioned and what they were used for. “I asked a lot of questions about what those servers were. He tried to explain but I don’t think I understood him.” That short conversation left an indelible impression on Ugi. It wouldn’t take long before he abandoned his dream of medicine to pursue tech. *Newsletter continues after break #HerMoneyHerPower The She Tank & BellaNaija’s #HerMoneyHerPower campaign has sparked a national conversation, and we’re here for it! PwC Nigeria says closing the gender equality gap could increase Nigeria’s GDP to $229 billion by 2025. A stronger Nigerian economy starts with women’s economic power. Learn more here. From Calabar to Middlesex Ugi’s first foray into tech was through a tech-ish adventure. In 2006, shortly after finishing high school, he found an e-commerce course that taught how to sell goods online. The fee was ₦200,000 but a scholarship reduced it to ₦140,000 ((fun little trivia: ₦140,000 in 2006 is about ₦ 1.1 million today). Yet, that amount was still too high for Ugi to pay for his tech dreams. Open courses were not available then, which made it harder to learn for free online. “My parents had a combined monthly salary of ₦6,000 ($47 in 2006; Nigeria’s minimum wage at the time was ₦5,500.) Paying for a ₦140,000 course was a no-no. They only wanted me to go to university.” Ugi (top left) with his parents and siblings Yet, Ugi did something remarkable—his GOAT story was using his dad’s phone to win ₦20,000 on the Who Wants to Be A Millionaire TV game show. He gave his dad ₦5,000 from his winnings and used the rest as a down payment for the course. He later sold computer software apps, earning enough to pay the remaining fees. He finally got another opportunity to study Software Development at the National Institute of Information Technology (NIIT), a computer training school in many parts of Nigeria. Ugi completed his software development program at NIIT before joining Hot-Minet, an IT services company in Calabar, for three years as an intern. In 2012, he found his way to Middlesex University in London, UK, to study Business Systems and IT, sponsoring his studies from his own pocket. The whole time he was at Hot-Minet, Ugi had been working on tech projects on the side and had come into some money. Ugi at Middlesex University, UK When Ugi returned to Nigeria, he started several businesses, including GTCO Calscan, an agency that provides software development, design, and marketing services. He later left to start Nugi Technologies, which eventually stuck. *Newsletter continues after break On building global tech talents Ugi started Nugi Technologies, a computer training and tech service provider in Calabar, in 2014 with a clear goal—to create opportunities for young Africans in tech. “If you place Nigerian engineers side-by-side with those from India, the Nigerian engineers will likely win. They don’t have more skilled engineers in India than in Nigeria, we’re just bad at developing our talents,” he said. Take it from a man who has spent a better part of his career working with engineers and clients from all over the world. His own journey into tech wasn’t straightforward, no thanks to the lack of access to open courses that techies in this era enjoy. You can get started with learning almost anything online for free without paying a dime. Old-school tech bros didn’t have this luxury. Ugi’s philosophy is to invest in people, which is why Nugitech started sponsoring its top students for international studies on the condition they return to work for the company. For Ugi, he sees the work he does as building tech talents that can stand toe-to-toe against furnished Ivy League CVs and work at the best companies. His fondest example, Emmanuel Etti—who used to work at Nugitech and was its first CTO—is now a Lead Software Engineer at global tech giant IBM. Emmanuel Etti before IBM stardom “I see myself as a door opener for others because I found it difficult to get through doors early in my career.” Ugi also talks about his work as a solutions architect in Cross River State—one of his company’s clients—to build the country’s biggest tech
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BasiGo raised $41.5 million to put electric buses on the road
BasiGo, a Kenya-based electric bus startup founded in 2021, has closed a $24 million Series A equity round and an additional $17.5 million in debt funding. The round was led by Africa50, a pan-African infrastructure investor, the British International Investment (BII), and the U.S. Development Finance Corporation (DFC). Other investors in the equity round included Novastar Ventures, CFAO Kenya, Mobility54, and SBI Investments. The loan includes a $10 million facility from DFC to support BasiGo’s operations in Kenya and a $7.5 million facility from BII to help BasiGo expand its electric bus services in Rwanda. BasiGo was launched in Kenya in 2021 by Jonathan Green and Jit Bhattacharya after raising $1 million in pre-seed funding to manufacture eclectic buses in Kenya and put those buses on the road in Nairobi as commuter vehicles, popularly referred to as matatu. As of March 2024, BasiGo electric buses had transported over 4 million passengers, reducing greenhouse gas emissions by 1,175 tonnes. The funding comes seven months after the Kenyan government launched a national e-mobility draft policy to promote the local manufacturing and assembly of electric vehicles. BasiGo will use the funding to grow its fleet of electric buses from 119 to 1,000 in Kenya and Rwanda over the next three years to compete with Roam Motors, which raised $24 million in February 2024. “With BII’s support to expand our e-bus model in Rwanda, we are ready to deliver hundreds of modern, emissions-free electric buses across East Africa,” said Jit Bhattacharya, CEO of BasiGo. The funding will also help scale up its e-bus assembly line and expand its pay-as-you-go model—a financing product that allows customers to lease BasiGo buses to cut high upfront costs—to new bus types. Its E9 Kubwa model can cost up to KES 7.5 million ($58,000). Ordinary buses used for mass transit in the cities usually cost a little over KES 5 million ($37,000). BasiGo CEO Jit Bhattacharya and Dr. (Eng.) Joseph Siror, Kenya Power Managing Director and Chief Executive BasiGo’s strategy is to tap into Nairobi’s Matatu culture, where small buses run by Savings and Credit Co-operatives (SACCOs) move millions daily. BasiGo has partnered with SACCOs, including Super Metro and Citi Shuttle, to introduce their buses into Kenyan roads. In 2022, it raised $4.3 million in a seed round, followed by $6.6 million later that year and $5 million in debt from BII. In March 2023, BasiGo raised $3 million in equity from CFAO and its venture capital arm, Mobility54. Roam Motors, BasiGo have a long way edge out diesel buses in Nairobi
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👨🏿🚀TechCabal Daily – One plus one equals one
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! Last Sunday, SpaceX made headlines and history for catching the Starship rocket, a reusable rocket booster with mechanical arms. Yesterday, Anthropic released a new AI model that can control your PC. The firm released an upgraded version of its Claude 3.5 Sonnet model that can understand and interact with any desktop app. The new “Computer User” AI model—still in its beta stage—will be able to perform research, answer emails, and handle other back-office jobs independently. How cool is that? MainOne completes integration with Equinix What went wrong with GT’s core banking migration? Ethiopia’s historic IPO The World Wide Web3 Opportunities M&A MainOne completes integration with Equinix Image Source: The Gazette NGR Mergers and acquisitions are big deals (pun intended). So, when MainOne, the first private company to land a submarine cable and build a tier III data centre, was acquired by Equinix on April 5, 2022, for $320 million, it hogged the headlines. An exit for an infrastructure business proved that Nigeria’s tech ecosystem was finally getting the attention it deserved. For competitors, it was a wake-up call—Equinix, with an $84 billion market capitalisation and 260 data centres globally, was now in Nigeria. For MainOne employees, there may have been some anxiety about their jobs initially—redundancies are common in mergers and acquisitions. But two years on, with the post-merger integration completed, employees will receive pay bumps in March 2025 after signing new contracts. Equinix is also expanding its operations in Nigeria, increasing the number of data centres from two to five. Three new data centres are currently under construction, and the company plans to grow its fibre cable network in Nigeria’s South-South region. Some changes came with the integration. MDXi, the unit that manages data centres, will now be called Equinix, while MainOne, which handles submarine cables and connectivity, will be rebranded as MainOne, Solutions by Equinix. Equinix is already expanding into other African countries, such as South Africa. How far is the company willing to go in its African foray? Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Banking What went wrong with GT’s core banking migration? Image Source: TechCabal On Monday, October 14, GTBank told its customers that they could resume banking services after its tech team and an engineering team from Infosys spent the previous weekend migrating data from Basis, its previous core banking application, to Finacle, its new application built by Infosys. Yet, life is what happens when you’re busy making other plans. If you have spent time online, you’ll know GTBank customers could not complete transactions, received wrong credit and debit alerts, and incorrect account balances. The core of the problem was a problem integrating its channels with its new core banking application Finacle. Core banking applications (CBAs) manage transactions, customer accounts, regulatory compliance, fraud detection, and generate reports for the bank so any issues with the CBA directly affect customers. “Nobody can perform a banking transaction without channels,” a consultant for Temenos, a leading CBA, told me. Think of the CBA as an island and channels are like bridges that connect customers to that island. Customers received erroneous alerts due to a data migration issue at GTBank. The bank switched systems from Basis to Finacle on Friday, but transactions continued over the weekend. This created a backlog of alerts that were processed the following week, leading to the errors. Read more about the switch. Issue USD and Euro accounts with Fincra Whether you run an online marketplace, a remittance fintech, a payroll, a freelance platform or a cross-border payment app, Fincra’s multicurrency account API allows you to instantly create accounts in USD and EUR for customers without the stress of setting up a local account. Get started today. Economy Ethiopia’s historic IPO Image Source: TechCabal Since coming to power in 2018, Ethiopian Prime Minister Abiy Ahmed has pushed ambitious economic reforms to open up the Horn of Africa, often considered one of the last closed economies on the African continent. In July, the country floated its currency and entered a $3.4 billion IMF programme, which Ahmed described as “the pain of surgery, endured for healing.” Part of Ahmed’s financial sector reforms have been to open the country’s financial sector to the entry of foreign banks and the launch of a securities exchange. After almost five years of planning, the Ethiopian Securities Exchange (ESX) is expected to go live, with Ethio Telecom as the first company to list. The planned IPO has fallen short of the promise to allow the flow of foreign capital after the government limited the participation of diaspora residents and foreign nationals. The government plans to raise $255 million by selling 10% of the telco giant through Ethiopian Investment Holdings (EIH). However, the decision to restrict diaspora and foreign investors from Ethio Telecom’s IPO could slow the country’s development of open capital markets. EIH, the Ethiopian sovereign wealth fund, also plans to list 10 of its biggest investments, including the Ethiopian Shipping and Logistics Services and Ethiopian Insurance Corporation. It is unclear if the regulators will allow foreigners to buy a stake in the subsequent sale of state-owned firms. Introducing Pay with Pocket on Paystack Checkout Paystack merchants in Nigeria can now accept payments from PocketApp’s 2 million+ customers. Learn more → CRYPTO TRACKER The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $67,149.02 – 0.33% + 5.17% Ether $2,614.62 – 0-87% – 1.70% AI Companions $0.101 + 6.27% + 8.59% Solana $165.59 – 0.74% + 12.87% * Data as of 06:00 AM WAT, October 23, 2024. Opportunities Nearly 200 startups, including those from Nigeria, are vying for top honours in the world’s largest pitch competition, Supernova Challenge 2.0. With a $200,000 prize
Read MoreWhy GTBank has struggled with its switch to Finacle
On the morning of October 14, GTBank, a Nigerian bank with a market cap of ₦ 1.5 trillion, completed its switch to Finacle, its new core banking platform, a move that was a year in the making. A key part of the process of moving from its previous platform Basis involved GTBank’s tech team and engineers from Infosys, the Indian IT company that built Finacle, spending the previous weekend migrating customer data. While the bank told its 32.8 million retail customers that they could now make transactions on October 14, the reality for customers was failed transfers and erroneous debit and credit alerts. Many customers complained on social media—those complaints have continued this week—even as the bank failed to share further updates since Wednesday. Switching a core banking application takes several steps, but moving data and integrating channels are the most difficult. While the data migration was successful, integrating the bank’s channels (cards, online banking, and APIs) into Finacle was more difficult than the bank anticipated, one person with direct knowledge of the process said. this country is actually making me go crazy. It’s been FIVE entire days & GTBank still hasn’t addressed/resolved this issue or even bothered to communicate with their customers. This level of negligence is beyond frustrating & completely unacceptable. — BAD. (@lohiii_) October 18, 2024 Despite round-the-clock efforts, the teams have not fully integrated all the channels into Finacle. An engineer at GTBank told TechCabal that the integration would be completed in the coming weeks but failed to give a definite timeline. funny how gtbank’s online victory laps about the “successful” core banking update is very much divorced from the reality of its customers. — Ezra ‘God’ Olubi (@0x) October 15, 2024 GTBank did not respond to a request for comments. “Integrating channels into a new core banking platform is one of the trickiest parts of a core banking switch, especially for a bank like GT with many channels. Nobody can perform a banking transaction without channels,” a consultant for Temenos, one of the world’s largest core banking applications, told TechCabal. “Some banks turn off all channels [during a core banking switch] for a seamless migration, but I guess GTBank could not afford to stop working,” the consultant added. GTBank finalising change to new core banking platform That theory may explain why GTBank did not restrict customer access to its banking services during the process. Instead, the bank allowed customers to transact without receiving debit or credit alerts during the data migration, which used data from the evening of Friday, October 11, a person with direct knowledge of the process told TechCabal. Customers who processed transactions received the alerts only after the migration to Finacle was completed. Many GTBank users on X posted about erroneous transaction alerts the week after the migration. This GTBank randomly crediting people is crazy because I saw 64k credit alert but it didn’t reflect in my balance. — Tobussy (@_jhadiin) October 16, 2024 GTBank’s struggles highlight the complexities of massive technological changes and show how expensive and time-consuming they can get. The planning before an actual switch begins can take up to one year, and banks can pay as much as ₦25 billion annually for software licenses. Core banking consultants and engineers like the Infosys team typically get paid $50 daily besides accommodation, plane tickets, feeding, and the switching fee. “No cost was spared,” one person involved in the process told TechCabal. Since the weekend of October 11, GTBank has accommodated its core banking team and Infosys engineers in hotels close to its Victoria Island headquarters. These teams are still in the process of integrating the bank’s various channels, even after working through the weekend and into the following week. In one instance of exhaustion, an engineer left his team for a nap during the migration process, only to be woken up within 20 minutes by his colleagues who urgently needed his assistance. Given the unknown timeline for successful integration, GTBank customers may need to brace for more frustration, especially as salary week approaches, when transaction volumes typically spike.
Read MoreMadica backs Nigerian clean energy startup Earthbond with $200,000
Earthbond, a Nigerian startup that connects small businesses that want to buy solar solutions to solution providers, has raised a $200,000 pre-seed funding from Madica, an Africa-focused early-stage investment firm. This funding will help Earthbond onboard more small and medium businesses (SMBs), the company said in a statement. The startup claims it has audited the solar power needs of over 100 businesses in Lagos in deals that could be worth $1 million. Over 1,800 SMBs have joined Earthbond’s waitlist, showing demand for energy transition as fuel prices rose 40% in September. Founded in 2023 by Chidalu Onyenso, Earthbond helps businesses determine how much solar power they need and provides financing options to go solar. It connects these businesses with solar solution providers, such as solar panel installers, loan providers, and available loan payment options. Business owners only need to fill in details of their registered businesses and operating hours on a form on the startup’s website. Earthbond claims it has partnered with four microfinance banks to provide businesses with flexible repayment plans of up to 48 months. Small businesses are the backbone of Nigeria’s economy, but they are heavily burdened by unreliable power supply and the high costs of running diesel and petrol generators. While solar power offers cleaner energy solutions, the high installation costs have deterred many businesses from adopting it. Earthbond’s financing option will be useful for business owners keen to adopt clean energy without pressuring their pockets. “Leading the charge of energy transition is no easy feat and we are glad to be joined by renowned investors who share our passion and drive,” said Chidalu Onyenso, Earthbond’s CEO. The startup also plans to tap into the climate tech industry by helping businesses track their carbon emissions, offering them discounts based on how much carbon they save. This will incentivise businesses to choose the provider. Earthbond will enter Nigeria’s renewable energy market, joining players like Rensource Energy, M-KOPA and Arnegy in the race to boost Nigeria’s installed solar capacity from 3.13 gigawatts (GW) to 5.01 gigawatts (GW) by 2029. Madica will provide a structured program to help Earthbond revamp its marketing, onboard more businesses, provide loans in partnership with more banks, and build payment tools for its customers. “Earthbond has tremendous potential to drive an equitable clean energy future and positively impact Africa. We remain devoted in our quest to support underrepresented founders,” said Emmanuel Adegboye, head of Madica.
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