- October 6 2023
TechCabal Daily – Zambia gets Starlink
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF We’re five days away from The Moonshot Conference where Africa’s most audacious thinkers and builders will share insights and celebrate innovation on the continent from October 11–12. Here are five of the Moonshot events I’m personally looking forward to: The Welcome Mixer on October 10 where we’ll get to network with 200 industry leaders. TC Battlefield on October 11 where African startups will pitch for $3,200. The future of content panel with Jola Ayeye, FK Abudu, and Koromone Asabe-Yobaere. How to build and monetise as a content Creator with Fisayo Fosudo, Adetutu Laditan, and Eniola Olanrewaju. The Keynote Speech by Nigeria’s minister of communications, innovation, and digital economy Bosun Tijani. Don’t miss out. Buy your tickets for Moonshot Conference here, and get a 25% discount with our Independence flash sales. In today’s edition Dangote backs $500 million Africa-focused fund Opay denies data privacy allegations Google selects 12 Africans startups for AI programme Zambia gets Starlink Funding Tracker The World Wide Web3 Job openings Funding Africa’s wealthiest man and US billionaire investors back $500 million Africa-focused fund Africa’s richest man: Aliko Dangote. Aliko Dangote, Africas richest man, has teamed up with US billionaire investors to back a $500 million Africa-focused fund. The investors, Alterra Capital Partners, an Africa-focused private equity firm, has ambitious plans to raise up to $500 million in the coming months and has already secured $140 million in its initial closing. Other investors: Alterra’s fund has also attracted investment from notable institutions including Standard Bank Group Ltd., International Finance Corp., Norfund AS, Deutsche Investitions- und Entwicklungsgesellschaft GmbH, and Allianz SE’s AfricaGrow fund. The firm’s investment strategy is centred around critical sectors, including telecommunications, technology, logistics, healthcare, consumer services, and retail. Alterra Capital Partners, which assumed responsibility for Carlyle’s assets related to sub-Saharan Africa during the height of the Covid-19 pandemic in mid-2020, is spearheaded by a team of seasoned investors who have achieved six successful company exits, returning $600 million to investors. Per Bloomberg, the firm has invested approximately $1 billion across 23 companies in Africa, indicating a significant track record in the region. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. Fintech Opay deny claims of opening account for people without consent Gif Source: Tenor Chinese-backed fintech Opay has denied claims that it opened accounts for customers without their consent. The Nigerian fintech, on Tuesday, started an internal investigation on the matter. Zoom in: The allegation of these accounts began earlier this week when a user shared on X that he and other members of his family had Opay accounts without ever opening one. The tweet quickly went viral with more people claiming they also had already existing Opay accounts without their knowledge. Opay has, however, denied such allegations claiming that the complaints via social media have been checked and resolved. “It is also important to note that OPay has never created nor does it operate any account on behalf of any individual,” OPay said in its statement to TechCabal. One theory is that users might have had these accounts through OPay former superapp offerings—ORide, OFood or OKash—which were powered by the Opay wallet. However, several users insist they never used any of those services. Zoom out: The Nigerian consumer protection body is currently investigating the case of these phantom accounts and requires Opay to provide explanations for the phantom accounts Accept payments fast with the Paystack Virtual Terminal Paystack Virtual Terminal helps businesses accept blazing fast in-person payments at scale, with ZERO hardware costs. Enjoy instant transfer confirmations via WhatsApp, multiple in-person payment channels, and more. Learn more. Innovation Google unveils startups for its Africa AI First accelerator programme The 11 African Startups for the inaugural Google Africa AI First Accelerator programme Google has introduced its inaugural Africa AI First accelerator programme. According to Google, eleven startups were selected to address Africa’s challenges and broader global issues. These startups will undergo a 10-week accelerator journey, gaining access to Google’s AI expertise, receiving $350,000 in Google Cloud Credits, benefiting from mentorship, technical guidance, and extensive networking opportunities. The selected startups are; Avalon Health (South Africa), Chatbots Africa (Ghana), Dial Afrika Inc (Kenya), Famasi Africa (Nigeria), Fastagger Inc (Kenya), Garri Logistics (Ethiopia), Izifin (Nigeria), Lengo AI (Senegal), Logistify AI (Uganda), Telliscope (Ethiopia) and Vzy (Nigeria). Zoom out: Google’s support for African startups dates back to 2017, and the company has collectively helped raise $263 million and create over 2,800 job opportunities. Internet Starlink is live in Zambia Image source: Telecom Review Africa Zambia has become the latest to join a growing queue of countries with access to Starlink, SpaceX’s satellite-based internet service. Starlink got its operating licence for Zambia in June. Paratus Zambia, a telecom operator, will handle its distribution in the country. Per Starlink’s website, it costs 10,744 Zambian kwacha ($505) for Starlink’s hardware, and 507 Zambian kwacha ($24) for the monthly subscription. Zambians will enjoy download speeds of up to 120mb/s on the internet service. Since its launch on the continent in January, Starlink has expanded to 6 African countries—Mozambique, Rwanda, Mauritius, Sierra Leone and Nigeria—with Zambia being the latest addition. However, Africa’s largest internet-consuming nation, South Africa is yet to join this list. ICYMI: Starlink’s launch in South Africa has been stalled due to the internet provider’s refusal to give up a 30% stake of its equity to the country. In a bid to a get the licence required to run in the country, Starlink requires a IECS and IECNS licence which requires that it gives up 30% of its equity to a “historically disadvantaged group”. Zoom out: Starlink’s launch in Zambia scores a win for the service adoption on the continent as it has faced several regulatory hurdles. The service is set to launch in 19 more African
Read More
- October 5 2023
Starlink goes live in Zambia
The country becomes the sixth in Africa to have access to the service. Starlink has officially launched in Zambia today, October 5. The company initially engaged with the country’s government in September 2022, and following a year of ticking off regulatory and technical boxes, it has gone live. The service got its operating licence in June, and its distribution in the country will be handled by Paratus Zambia. “Starlink is now live in Zambia,” tweeted the country’s president Hakainde Hichilema. “Access to technology and information is no longer a luxury for our people. A great step, as we work towards affordable digital access for all.” According to the Starlink website, the service will cost 10,744 Zambian kwacha ($505) for the hardware and 507 Zambian kwacha ($24) for the monthly subscription. Data by UK research firm Cable shows that Zambia has the fourth most expensive data prices in Africa. On average Zambia’s data was priced at US$8.01 for one gigabyte, with the cheapest pegged at US$0.45, while the most expensive one was at US$45.33. Zambia becomes the sixth African country that Starlink has launched in. The others are Mozambique, Rwanda, Mauritius, Sierra Leone and Nigeria. In Zimbabwe, the government has announced that it is in the process of vetting the company’s application for an operating license. Zimbabwe confirms Starlink has applied for operating licence Despite making strides on the continent, the service is still facing pushback in South Africa where its importation and usage have been banned. According to the country’s competition regulations, the service’s South Africa subsidiary must allocate 30% ownership to historically disadvantaged groups, a provision the company seems to be pushing back against. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- October 5 2023
How startups are trying to address SA’s healthcare access gap
Healthcare startups in South Africa are playing their part in helping to address the inequality in the country’s healthcare sector. As the world’s most unequal country, South Africa’s lopsided wealth distribution has created a two-tiered healthcare system whose inequality mirrors that of apartheid, a system supposedly replaced by democracy 29 years ago. On the one hand, there is a mostly dilapidated public healthcare system servicing 85% of the population, and on the other hand is a world-class private healthcare system which ranks as the best on the continent. To access efficient healthcare in private institutions, employed middle-class South Africans rely on medical aid schemes which subsidise around 90% of medical expenses. Despite this advantage, medical aid costs have surged in South Africa over the years, with coverage now costing an average of over R2,000 ($102). This has forced more people into the public healthcare system which already services unemployed inhabitants who make up 33% of the country’s population. Additionally, it is characterised by understaffing, dilapidated infrastructure, and constant medical supplies shortages. In June, South Africa’s national assembly passed the National Health Insurance (NHI) act which seeks to provide universal access to quality healthcare in the country. However, according to academics, until the NHI gets to a point where it can fulfil its mandate, technology innovators still have a large role to play in plugging the current gap. “Healthcare and services promoting health as a resource in South Africa are ripe for systemic innovation that capitalises on resource scarcity,” writes Katusha de Villiers, senior project manager at Bertha Centre for Social Innovation and Entrepreneurship. “The work of social innovation provides an opportunity to develop transformative and systemic solutions that move the system as a whole closer to achieving health equity.” To that end, there are numerous startups in the country, which are innovating for healthcare equity in the southern Africa nation. Role of startups in the quest for healthcare equity One of those startups is Welo Health founded by Zanele Matome in 2020, which offers on-demand health services by connecting healthcare providers with patients via a model Matome refers to as “Uber for health.” “Our core product comprises a B2B model which allows employees who are sick at home to use our app to match with a nurse,” Matome told TechCabal. “The nurse can choose to accept the appointment and attend to the patient, after which they upload information on their dashboard which is shared with patient and insurer.” To accommodate unemployed and uninsured South Africans, the company had a B2C product which enabled delivery of medication to users. According to Matome, the service brought much needed convenience and dignity to users of the public healthcare system, but as the company pivoted to a B2B model, it slowed its focus on the product. However, after realising the need of such a service, especially in underprivileged communities, the company will be doubling down on the product after it raises its Series A round. “For people who use public healthcare facilities, you have to wake up at 5 a.m. to queue at the clinic and have nurses shouting at you the whole day. There’s no dignity in the whole process,” she said. “ So this product addresses that pain point by offering delivery services on behalf of users. It is already live for our B2B clients, but after we secure funding we will also roll it out again to the B2C market.” The company, which has so far raised $72,000 in grant funding from AlphaCode Incubate and the Bill & Melinda Gates Foundation-backed Investing in Innovation Africa (i3) initiative, claims that its B2B product offering bring in over R500,000 ($27,000) of monthly recurring revenue. As the company looks to relaunch the B2C offering amidst a significant demand, they will be hoping to see how much its social impact will contribute to the company’s bottomline. Pocket Couch is another healthtech startup addressing the need for equitable access to healthcare in South Africa. Founded in 2019 by Onkgopotse Khumalo, the company enables users to better manage their mental health. Via a mobile app, users can access therapists and mental health care experts, screening, and tracking tools as well as content specific to whatever kind of support the user might be looking for. “The whole idea started with the intention of making mental health care as accessible as possible, especially in communities where accessibility is hard,” Khumalo told TechCabal. “ We address the issues of cost, convenience and removal of stigma around mental health.” Although Pocket Couch mainly works with enterprise clients to provide its services to their employees, it appreciates its role in catering for the rest of the population. To that end, it is engaged in various ways to ensure accessibility to mental health services in a country where 30% of the population has experienced a mental disorder in their lifetime. One of those ways is engaging in advocacy work to urge the government to contribute more towards mental healthcare in the country. According to data by the National Health Institute, the South African government spends only 5% of its healthcare budget on mental healthcare projects. This comes down to $140 dollars per capita of the uninsured population in a year. In comparison, the healthcare spend in the private sector is $1,400 per capita annually, a 900% difference. “The government’s spend on mental healthcare is low compared to the vastness of the problem so we are actively engaged in policy advocacy which we hope will pave the way for efficient legislation,” Khumalo added. Additionally, the startup is increasing the participation of social workers and community-based leaders in administering care. According to Khumalo, this helps reduce the cost of administrative care which will widen the net of people able to access their services. Women’s healthcare is another area rife with access inequalities in South Africa. According to data from Statistics South Africa, only 18% of women have medical aid to access healthcare services they cannot find in public facilities. Additionally, women of colour in
Read More
- October 5 2023
The leading African tech moves from September 2023
1. Funding: Q3 brings in the lowest funding of the year In September 2023, 22 African tech startups raised $116.7 million across 22 fully disclosed* raises. Compared to August 2023’s $243.7 million total raise, this represents a 52.11% decrease. This also represents a significant YoY decrease—about 69.6%—from September 2022 when African startups raised $383.4 million. With this, September marks the month with the second-lowest funding following March’s $66 million raise. In total, Q3 saw African startups raise $492.6 million across 67 fully disclosed deals. It’s a decline from Q2’s $877 million total raise, and an even sharper drop from Q1’s $1.3 billion. So far, African startups have raised $2.57 billion. Per region, Southern African startups made a surprising appearance in first place with $69 million in raises, about 59.1% of the total funding. This is mostly led by energy startup Wetility’s $48 million raise. West Africa comes second with $26.1 million, East Africa with $20.2 million, and North Africa with $1.4 million. Image source: Timi Odueso/TechCabal Per sector, the top three sectors for September 2023 are energy with $60 million (51.41%)—led by the Wetility raise and Kenya’s SunCulture’s $12 million raise, fintech with $27.5 million (23.56%), and retail/e-commerce with $11.6 million (9.94%). Image source: Timi Odueso/TechCabal The top five disclosed deals of the month are: South African energy startup Wetility’s $48 million debt and equity round. Kenyan energy startup SunCulture’s $12 million syndicated debt facility. Ghanaian agritech Complete Farmer’s 10.4 million pre-Series A round. Zambian fintech Lupiya’s $8.25 million Series A funding. South African retail startup Rentoza’s $6 million raise. *Note: This data is inclusive only of funding deals announced in September 2023. Raises are often announced later than when the deals are actually made. This data also excludes estimated grants from accelerators. 2. Investments: Enza Capital launches a $58 million fund In September, Kenyan-based venture firm, Enza Capital, raised $58 million to support startups on the continent. The VC company, which invests from first cheque, is also kickstarting a new shared ownership model that allows startup founders the ability to own part of the firm. Enza capital has allocated 10% of its carry pool to founders. Another VC firm, P1 Ventures, also closed a $25 million fund which it plans to invest in African businesses across fintech, SaaS, AI and healthtech ventures. 3. M&As: Risevest acquires Chaka, WhoGoHost acquires SendChamp Q3 also ended with a few acquisitions. First, earlier in the month, Nigerian cloud infrastructure company WhoGoHost acquired SendChamp, a cloud communications startup, for an undisclosed amount. Much later, Nigerian trading startup Risevest announced its acquisition of digital trading startup Chaka for an undisclosed sum. 4. Shutdowns: 54gene shuts down Last month, TechCabal also confirmed that Nigerian genomics startup 54gene is shutting down. The news was confirmed by ex-CEO Ron Chiarello. The startup, which raised $54 million since its founding in 2019, struggles through several leadership changes and impulsive spending habits. Meanwhile, founder and ex-CEO Dr. Abasi Ene-Onong launched a new genomics startup, Syndicate Bio, in the same month. 5. Sendy goes into administration, PayDay searches for a buyer September saw Kenyan logistics startup Sendy enter into administration—an independent person, Peter Kahi, will take control of the company until it can resolve its financial crisis. This comes after the company, which was reportedly burning $1 million per month in operating costs, failed to find a buyer. Meanwhile, Nigerian fintech startup PayDay also confirmed its search for a buyer in September. The company, which raised $3 million in March 2023, faced a series of challenges including contentious salary increases, impulsive management choices and faulty infrastructure. 6. Economy: Kenya joins PAPSS In September, Kenya became the tenth African country to join the Pan-African Payments and Settlement System (PAPSS). Trade secretary Moses Kuria made the announcement noting that the Central Bank of Kenya (CBK) had signed the agreement and completed all the necessary formalities. So far, the service—which is used by nine central banks—has reportedly saved African companies $5 billion in transaction charges. 7. Layoffs: mPharma lays off 150 staff One year on, and layoffs are still occurring in the tech space. In September, Ghanaian healthtech mPharma announced that it had laid off 150 employees—including 40 from its Nigerian team. Per CEO Gregory Rockson, the layoff are—unsurprisingly—due “macroeconomic conditions driven by the devaluation of the naira”. This comes 19 months after the startup raised $35 million in a Series D round. 8. Economy: Sama to provide 2,100 Kenyans with AI jobs Months after Meta cut ties with it, Kenyan content moderation firm Sama is taking a new turn. In September, the company announced a pivot from content moderation into artificial intelligence (AI). Per Kenya’s cabinet trade secretary Moses Kuria, the company was set to hire 2,100 Kenyans to work in several AI-focused teams including machine learning, and business process outsourcing (BPO). 9. Social Media: Kenya is still going after TikTok While Sama might not be interested in moderating content anymore, several other Kenyan players are. September saw Kenyan officials with a renewed drive to ban TikTok…or at least parts of it. The Kenyan Film Classification Board (KFCB) reportedly requested that TikTok disable its Live feature in the country in a meeting with TikTok CEO Shou Zi Chew. The meeting was held with the Kenyan president to discuss a petition to ban TikTok earlier received by the Kenyan Parliament. Meanwhile, similar petitions to ban TikTok have surfaced in Uganda and Egypt. 10. Global News: TikTok fined $370 million in the EU Looks like the social media company is fighting fires everywhere. In the European Union, TikTok was fined €345 million ($370 million) for violating privacy laws relating to the processing of children’s personal data. Per Ireland’s Data Protection Commissioner, TikTok committed a number of breaches between July and December 2020 including non-verification of age for underage users, and setting visibility for under-16 accounts to “public” by default. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- October 4 2023
Entering Tech #42: Building a career in content marketing
And where you can learn content marketing too. 04 || October || 2023 View in Browser Brought to you by Issue #42 Building a contentmarketing career Share this newsletter Greetings ET people Today’s edition of #EnteringTech is brought to you by our sister publication Zikoko, specifically Boluwatife Oni who graciously licensed her content to me in exchange for just one litre of ice cream. Side note: I would have done it for two. Anyway, we’ve spent the past two editions of #EnteringTech talking about marketing talents and whether they should or shouldn’t be the generalists everyone wants them to be. If you missed those, find them here and here. In today’s edition, we’ll focus on one of the marketing careers, content marketing, and how you can build a career in it too. Oh, and we’ve got a special gift for all student readers further on. by Timi Odueso & Boluwatife Oni. Tech trivia Some tech trivia to get the brain juices flowing. What is the name of the first person to ever post a video on YouTube? What is the name of the most popular content marketing platform in the world? Who is a content marketer? Google will likely answer this question in a number of ways, but in summary, a content marketer is a storyteller. You remember that one kid in school who’d narrate movies and season films during break time to a crowd of attentive listeners? That’s kinda like what a content marketer does. They identify, create and distribute engaging content to attract a target audience and get them to interact with the products or services that a business offers. Content marketers employ various processes like market research, content strategy, copywriting and search engine optimization to convert prospects into customers. It’s a bit similar to copywriting, but they’re not exactly the same thing. Copywriting is more direct and is written to persuade, sell or trigger immediate action. But content marketing involves content that provides long-term value and is a gradual attempt to build relationships with the target audience and generate leads for the business. A content marketer knows when to apply copywriting, but their entire content strategy isn’t designed to only produce short-term results. Content marketing is also sometimes considered to be digital marketing, but while they work hand-in-hand, there are slight differences in the sense that while all content marketing is digital marketing, not all digital marketing can be said to be content marketing. In content marketing, providing information to build trust is a major component of marketing. In digital marketing, online promotion is the main strategy. This involves pay-per-click advertising, like some of those (slightly annoying) unskippable ads on YouTube and other social media marketing efforts. In summary, many of the strategies in digital marketing don’t include informational content, which is central to content marketing. What skills do you need? Writing is a key skill in content marketing. Remember, you’re telling a story, so you’ll need to know the most compelling and engaging way to tell it. Search Engine Optimisation (SEO) is also necessary to help you push the content you create higher in search engine results pages. Other must-have skills include content strategy and management, social media content creation, analytics and social listening. A degree in marketing is beneficial, but not a strict requirement. You can always take content marketing courses and explore freelance or entry-level content marking opportunities to build your skills and experience. What kind of tasks do content marketers have? The day to day of a content marketer’s life may contain any or all of the following—depending on whether their line manager believes they deserve rest or not. Content Planning and Strategy: Review content marketing strategy and goals. Conduct keyword research to identify content opportunities. Plan content topics and themes. Content Creation: Write blog posts, articles, social media updates, or other types of content. Edit and proofread content for accuracy and quality. Create visual content like infographics or images if necessary. Collaborate with graphic designers, video producers, or other content creators. SEO Optimisation: Optimise content for search engines by incorporating relevant keywords. Ensure proper meta tags, headers, and formatting are used. Implement internal and external linking strategies. Content Promotion: Share content on social media platforms. Schedule and manage content distribution using social media management tools. Engage with the audience, respond to comments, and address questions. Email Marketing: Create and send email campaigns to subscribers. Segment email lists for targeted messaging. Analyze email campaign performance and make adjustments. Analytics and Reporting: Monitor website and content performance using analytics tools (e.g., Google Analytics). Track key metrics such as traffic, engagement, and conversions. Generate reports to assess the effectiveness of content efforts. Content Optimization: A/B test headlines, images, and calls to action to improve content performance. Update and refresh evergreen content to keep it relevant. Conduct content audits to identify areas for improvement. Content Collaboration: Coordinate with other team members, such as designers, SEO specialists, and social media managers. Attend meetings to discuss content strategy and progress. Research and Learning: Stay up-to-date with industry trends and best practices. Research competitors’ content strategies. Attend webinars, read industry blogs, and participate in relevant courses. Content Ideation and Brainstorming: Brainstorm new content ideas and formats. Collaborate with team members to generate fresh and innovative concepts. Content Management: Use content management systems (CMS) to upload, format, and publish content. Ensure content is organized and tagged correctly for easy retrieval. Attend the Moonshot Conference Calling all students Are you curious about how to enter tech, expand your professional network and push boundaries? Join us for a game-changing experience at Moonshot by TechCabal in Lagos from October 11 – 12. Get your tickets now Learn content marketing If you’re interested in trying your hand at content marketing, here are a list of resources. Content Marketing Foundations on LinkedIn Learning Price: Free Duration: 1 hour Tools Needed: Internet + phone Level: Beginner Get Course Content Marketing Certification Course by HubSpot Price: Free Duration: 6 hours Tools Needed: Internet + phone or laptop
Read More
- October 4 2023
Exclusive: OPay denies opening accounts for customers without their consent
OPay has denied claims on social media that the fintech opened accounts for people without their consent. The fintech startup OPay has denied claims that it opened accounts for customers without their consent following an internal investigation into the matter, which began on Tuesday. The fintech began its inquiry after customers on social media said their phone numbers were linked to OPay accounts that they didn’t open. The Nigerian Consumer Protection Commission said it began investigating the matter this week. Nigeria’s Data Protection Commission told TechCabal that OPay has been served an investigation notice. “Some 24 hours ago, we got information that there were active accounts/wallets on our OPay app, which the owners alleged had been created without their knowledge and consent,” said Adekunle Adeyemi, the company’s Head of Marketing. “Based on our investigation, we discovered that these accounts were indeed opened by the owners at different points, but generally between 2019/2020.” The allegations around the accounts began on the social media platform X. “I just checked now, and I have an Opay account, same with every member of my family,” wrote one X user. “None of us has ever opened an Opay account. How’s this even legal?” The tweet went viral, and more people claimed that although they had never opened OPay accounts, they also found that their phone numbers were linked to existing OPay wallets. Five people told TechCabal that they also realised this week that they have OPay accounts. “At least four of the complaints received via social media have been checked, and all four of them have been contacted to resolve the concerns raised,” OPay said in its statement to TechCabal. “It is also important to note that OPay has never created nor does it operate any account on behalf of any individual.” One working theory is that customers may have opened these accounts in 2019 and 2020 to use OPay’s verticals at the time, such as ORide, OFood or OKash–OPay’s wallets powered all of those verticals and have since been shut down. But at least two users insist they never used any of OPay’s services. “We would like to encourage any individual with similar concerns to contact us via any of our official channels,” said OPay. Despite OPay’s denial, there are still questions “The core is whether users were comprehensively informed and aware that their phone numbers could be used to set up a bank account,” said Ridwan Oloyede, a data privacy expert. “Transparent communication is pivotal, and it is vital to scrutinise the initial communication and onboarding processes to know if users were adequately informed about such practices.” OPay insists that its wallets can only be opened through the CBN-established registration process, which requires the input of an OTP authentication from the user’s phone to proceed. Data protection laws in Nigeria mandate organisations to clearly articulate their lawful basis for processing user data. “We’ve served them notice of investigation already, and it will be good to know their position,” said a legal enforcement lead for NDPC. “We already have complaints backed by evidence so it’s for them [OPay] to disprove the evidence if they have credible evidence.” *This is a developing story Meet the OPay Mafia Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- October 4 2023
After years of fighting the industry, SANTACO is entering ride-hailing
South Africa’s largest public transport association has entered the country’s ride-hailing market. It aims to challenge the dominance of Uber, Bolt, inDrive and others. After years of squabbling with the likes of Uber and Bolt, the South African Taxi Council (SANTACO) has reached a partnership agreement with three South African ride-hailing services. Through the agreement with Teksi Ride, Shuma and Yo!Taxi, members of SANTACO, who operate metered taxis and minibuses, will be able to offer ride-hailing services. Drivers on other platforms can sign up for the service after registering with SANTACO and drivers are also free to sign up for all the services concurrently. South Africa’s ride-hailing market is currently dominated by international players including Uber, Bold and inDrive. (Image source: Statista) A spokesperson for the association said they engaged the three platforms after conducting extensive due diligence to identify a partner for their ride-hailing play. Each platform has its established geographical strength, ensuring that SANTACO members everywhere can find rides. For example, Shuma’s stronghold is Durban while Yo!Taxi is mainly available in Johannesburg and Pretoria. “We identified that technology is part of every aspect of our lives and public transportation is no different, “ Sibongeseni Shange, SANTACO’s meter taxi deputy chairperson, told TechCabal. “With that in mind and the issue which currently plague ride-hailing in the country, we decided to enter that market.” inDrive in talks with regulators as Botswana taxi association calls for its ban One of the ride-hailing companies SANTACO has partnered with is Teksi Ride, founded in 2020 by Prince Pirikisi. SANTACO-registered drivers can sign up on Teksi Ride and find passengers. Teksi charges passengers R8.50 per kilometer and will take a 20% commission from drivers. Teksi will also also vet drivers and passengers to ensure safety. Given the amount of scrutiny Uber and Bolt have faced over lax safety measures, this is an important selling proposition. The company will also offer a panic button within vehicles as well as a 24-hour call center as safety incentives. “The safety measures that current players in the market have in place are so easy to bypass,” said Pirikisi “Additionally, these drivers are not answerable to any organisation which makes investigating criminal cases complex,” Pirikisi told TechCabal. SANTACO also cites the fact that drivers, passengers and law enforcement officials can easily reach out to the association in case of complaints and investigation as an important sell point of its ride-hailing service. Competing on innovation and convenience Per South African transport law, ride-hailing companies must at least have public transport operator licenses. The companies then lease these licences to drivers who use their platform–at least that’s how it should work in theory. In practice, most drivers on ride-hailing platforms don’t have these licences. SANTACO has argued for years that without these licences, drivers on ride-hailing platforms are operating illegally. There have been demonstrations that have sometimes turned violent, with protests earlier this year leading to the death of two Uber drivers in Johannesburg. SANTACO’s entry into ride-hailing will mean the association can focus on healthy competition. Shange claims that a significant number of drivers on other platforms have signed up on the SANTACO-backed ride-hailing platforms despite the fact that they’re still in the test phase. Another selling point from SANTACO is that by virtue of being members of the associations, despite being independent contractors, they would get membership amenities like car insurance and healthcare which incumbents do not offer. An interesting battle ahead Despite having been celebrated for their convenience and affordable pricing when they arrived in South Africa in the mid-2010s, international ride-hailing platforms have faced scrutiny in the country lately. They have been accused of operating illegally and driving metered taxis out of business; drivers have also argued that the commission they pay eats into most of their profits. South Africa’s Uber and Bolt Drivers go on a city-wide strike in Cape Town Yet SANTACO too is not without blemish. It has been accused of operating like a mafia by using its position as a representative of the country’s major public transport operators to bully competitors. As it enters the ride-hailing market and into direct competition with platforms it once wanted banned, it will be interesting to see how the ride-hailing competitive landscape evolves in South Africa. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- October 4 2023
Stears pivots into B2B market
Stears, a Nigerian data and intelligence company, is pivoting from its consumer-focused data solutions into an organisation-focused intelligence company with new offerings. Since its launch in 2017, Stears, a Nigerian data company, has evolved into an influential publication focused on data and information on Nigeria and its economy. With its analysis and unique offerings like a COVID-19 case monitoring platform and Nigeria’s first real-time election database, Stears represented a definitive source of information for Nigerians. But the company is now shifting its focus from consumers to organisations with its new B2B approach. According to Yvette Dimiri, the director at Stears, this change was driven by user feedback. “From the insights and data solutions being requested by our professional users, there seems to be a good fit there,” Dimiri said. “When we thought about, how do we produce these new insights and data solutions in a way that is good for the business? Of course, we’re still a business, it became very clear that we need to shift our model.” Backed by cumulative funding worth $4 million, the company will now offer organisations new intelligence solutions, including market sizing estimates, predictive forecasts, consumer indices, and comprehensive macroeconomic datasets. It hopes that with these new solutions, it will continue to attract global organisations operating or investing in the African continent. Stears says its customers include the United Nations Development Programme (UNDP), European Investment Bank, Infracredit, PZ Cussons, and Piggyvest. Funmi Ogunlesi, head of government affairs at Citibank Nigeria, said that Stears is her “secret weapon and go-to source of reliable data.” Nigerian media company, Stears raises $600,000 seed round funding Stears currently runs a subscription service for individuals and these subscriptions will continue to have access to Stears until their subscription expires. “We do believe that a number of our users who are professionals working in professional contexts and have always been champions of Stears will continue to champion the brand within those organisations,” Dimiri said. The company will also continue to publish articles, which have been the core of its intelligence solutions, and there will be no changes to the editorial team. Dimiri told TechCabal that this was possible because Stears had only hired analysts in the past two and a half years. Stears is backed by Luminate, a philanthropic organisation, that aims to fight misinformation in Africa. When asked if the company’s investors were on board with the pivot from providing individuals with information, Dimiri told TechCabal its investors were aligned with the pivot because Stears will continue to provide some free data solutions like the election database to the public. Stears will also continue to expand its presence on the continent with a primary focus on East and West Africa, according to Dimiri. She also told TechCabal that the pivot was not influenced by the company’s subscription model which she said the company was “really happy” with. Nigerian data and intelligence company Stears raises $3.3 million to solve Africa’s data dearth Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More
- October 4 2023
TechCabal Daily – Was South Africa hacked…again?
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Before Africa’s most audacious thinkers and builders share insights and celebrate innovation on the continent at the Moonshot Conference on October 11–12, we’re holding an ice-breaker—a Moonshot Welcome Mixer. To kickstart the Moonshot Conference 2023, TechCabal will bring together 200 founders, business leaders, executives, decision-makers, and government policymakers in Africa’s dynamic tech scene to mingle and network for the Moonshot Welcome Mixer on Tuesday, October 10, 2023. If you’d like to network and hang out with big tech leaders in Africa, register for the mixer here. In today’s edition Was South Africa’s security agency hacked? Kenya goes hard on crypto Kenya to launch nuclear plants by 2034 Meta’s plans for ad-free platforms The World Wide Web3 Opportunities Cybersecurity South Africa’s SSA suspected of being hacked by MI6 and CIA Image source: MyBroadband South Africa may be keeping a significant security breach under wraps. A breach? Yes. Per a report from Sunday World, the South Africa State Security Agency (SSA) believes it was the target of a coordinated cyber attack by foreign intelligence agencies such as the CIA and MI6 in August this year, a week before the BRICS Summit. As a result of the breach, a high-ranking official, Joe Mbhambhu, was reportedly forced to resign, despite not being directly responsible for the agency’s cyber unit. SSA director general Thembi Majola reportedly blamed him for the hacking. Additionally, internal sources suggest that the breach may have had inside assistance, potentially implicating individuals within the agency. The incident is reportedly considered a matter of “treason and espionage” by some officials. Impact on national security: The hackers allegedly gained access to internal email messages and a strategic management group on the communication platform, Telegram. While sources in the report suspect the CIA and MI6, no entity or group has claimed responsibility for the hacking. One source reportedly stated that the incident was concealed because it was embarrassing. Joe Mbhambhu declined to comment on the matter, while Thembi Majola stated that she was unaware of any hacking incident within the agency. Sources, including senior officials at the Agency, however insist that the hack happened. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. Regulation Kenya to develop stricter measures for crypto Image source: TechCabal Kenya is developing a “comprehensive oversight framework and policies on virtual assets and virtual assets service providers” in the country. A parliamentary committee has advised the country to develop a framework for virtual assets in the country. The development comes after the country suspended operations of Sam Altman’s crypto firm—Worldcoin. ICYMI: Earlier this year, Worldcoin scanned the irises of Kenyan residents in exchange for 25 World tokens ($41). However, this exchange of biometric data raised privacy concerns in the country. Experts believed that sensitive data collected from the scanned iris might land in the wrong hands. This led to a shutdown of Worldcoin’s operation in the country and an eventual raid on the company’s warehouse where data collection equipment was seized. Worldcoin’s episode has increased the Kenya government’s scrutiny of crypto asset providers in the country. Per Techcrunch, the parliamentary committee called on the country’s ICT regulator to disable Worldcoin’s presence in the country, including its physical locations and “blacklisting the IP addresses of related websites.” Zoom out: Kenya’s steep regulations on crypto assets providers come as no surprise as Cryptocurrencies are yet to be regulated in the country. The Central Bank of Kenya (CBK) warned against the use of virtual tokens in 2015, citing that they are highly volatile. Energy Kenya to launch nuclear plants by 2034 An image of South Africas nuclear power plant. Image source: The South African Kenya is gun-blazing with nuclear ambitions. The East African country is gearing up plans to launch its own nuclear plants by 2034. According to the acting CEO of the Nuclear Power and Energy Agency (NuPEA) Justus Wabuyabo, the country will start the construction of its first nuclear power plant in 2027, and will commission it in a 6-10 years window—2034. The plant will have a capacity of 1,000 megawatts (MW). Kenya’s plan to launch a nuclear plant is part of the country’s effort to diversify its energy generation. The plant will help boost Kenya’s power supply and reduce the reliance on thermal plants. According to Wabuyabo, the nuclear plans will be situated at either Kilifi or Kwale counties. Kenya’s goal to build a nuclear power plant stems from the anticipated rise in electricity demand as it aims to be a middle-income country by 2030. However, for Kenya to achieve its nuclear ambitions, it will need to upgrade its electricity transmission network to power the nuclear power plants. Zoom out: South Africa is currently the only country on the continent with a commercial nuclear plant which accounts for 7% of its energy generation. Kenya will join the league when it commissions its own plant in 2034. With its latest development, the East African country is catching up with the rest of the world in the wave of alternative energy sources and the fulfillment of zero carbon goals. Accept payments fast with the Paystack Virtual Terminal Paystack Virtual Terminal helps businesses accept blazing fast in-person payments at scale, with ZERO hardware costs. Enjoy instant transfer confirmations via WhatsApp, multiple in-person payment channels, and more. Learn more. Global News Meta to charge $10 per month for ad-free plan in Europe Image source: Zikoko Memes Meta is trying to adapt to evolving regulatory requirements in the European Union (EU). The parent company of Facebook may roll out an ad-free plan in the coming months, dubbed “subscription no ads” (SNA) for its social media giants, Facebook and Instagram in the EU. The plan would give EU users the choice between paying approximately €10 ($10) per month for ad-free
Read More
- October 3 2023
Starlink is offering users in Nigeria a 20% discount as it looks to expand reach
Starlink now costs 20% less for Nigerians as the company partners with Jumia to expand its reach. How far will a discount go in helping them acquire more users. Starlink, the satellite internet service owned by Elon Musk’s Space X, is slashing its price in Nigeria and expanding its distribution channels to acquire more users. The company is offering a 20% discount on its kit from ₦378,000 ($378) to ₦299,000 ($299). It has also partnered with Jumia, Nigeria’s most popular e-commerce platform. Per Wall Street Journal, while Starlink set sales targets of $12 billion in 2022, it only brought in $1.4 billion. Starlink, which expanded into Africa in 2023 with big plans to provide fast-speed internet to remote locations has faced more roadblocks than expected. The service which has a 100Mbps download speed is about ten times higher than the average download speed for mobile internet in sub-Saharan Africa where broadband penetration is still low, making it a great solution for the African market. Despite its potential for the continent, Starlink’s adoption across Africa has been faced with a number of challenges like affordability and regulatory concerns. In its first stop, Nigeria, the company has failed to capture a significant part of the market owing to its affordability problem with the kit costing significantly more than the average Nigerian can afford. About 70% of Nigerians suffer from poor internet speed, with the average quality of internet speed falling to 10.9% in 2023. However, the cost of Starlink rules it out as a solution for the majority of the population, even with a 20% discount, as the monthly salary of the average Nigerian is still below ₦124,000 ($124). Affordability isn’t its only barrier to its adoption as Starlink has also struggled with more regulatory roadblocks than expected in Africa. While it is not yet officially present in countries like South Africa as the government has banned the import, sale and usage of the service, thousands of South Africans have found ways to bypass regulatory hurdles and still access it. Similarly, Zimbabwe and Botswana have warned against the service, stating that the service is yet to complete the requisite licensing despite planning to launch in the country in Q3 2023. In August, the Senegalese government arrested five people for selling Starlink terminals without the required licence or authorisation. Some African countries like Rwanda on the other hand, have deployed the service to facilitate learning. In July, the country’s ICT Minister, Paula Ingabire, announced the launch of Starlink in 50 schools to provide students with access to more learning opportunities on the internet. This number is expected to increase to 500 by the end of 2024. The company has announced a partnership with e-commerce giant Jumia for the sales and distribution deal of the kits in Africa. Jumia is a strategic partner for Starlink as it is one of the most popular e-commerce platforms in the country with over 3.1 million active quarterly users. Jumia will exclusively distribute Starlink in Africa and its Chief Commercial Officer(CCO), Hisham El Gabry, believes that they have the needed experience in navigating the African retail and merchandise landscape. “The plan is to start selling through our sites and agents in Nigeria this month, and then Kenya,” he shared with Bloomberg. At the moment, the only countries in Africa where it is licensed to operate are Nigeria, Mauritius, Mozambique, Sierra Leone, Rwanda, and Kenya. It is set to be rolled out in more countries before the end of the year. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More