- October 31 2023
Bolt Kenya receives operating licence after meeting NTSA’s demands
Bolt Kenya’s operating licence has been renewed for the next year. This is after the e-taxi platform met some demands by a local transport authority. After fulfilling demands from the National Transport and Safety Authority (NTSA) and meeting other statutory licensing requirements, Bolt Kenya’s operating licence has been renewed for the next financial year. The development means Bolt Kenya has been cleared, as it has met three primary demands. First, it clarified to the NTSA the commission concerns, where it had been assumed that Bolt was charging drivers more than the stipulated 18%. “There was a misconception that Bolt was charging more than the stipulated 18% commission due to the booking fee. However, our commission structure strictly adheres to the stipulated regulatory requirement of capping at 18%,” Linda Ndungu, Country Manager, said in an email to TechCabal. Secondly, Bolt has dropped booking fees, which the NTSA called “illegal” since they are not included in the NTSA (Transport Network Companies, Owners, Drivers, and Passengers) Regulations, 2022. “The booking fee, which has now been suspended pending further clarification with NTSA around the interpretation of the regulation on this particular matter, was a service fee levied directly to passengers using our platform. Therefore, the booking fee did not in any way affect the drivers’ take-home earnings,” the country manager added. The 5% booking charge issue was controversial, and drivers rejected it because it was introduced after the state reduced the commission to a standard of 18%. While riders covered it, it still meant that Bolt’s earnings remained at 23%, which is higher than the initial 20% commission before the reduction. Lastly, Bolt has set up a driver engagement centre to “enhance its driver relations and address issues faced by drivers in their daily operations,” according to a statement from the company. This has been one of the most contentious issues, as Bolt drivers did not have access to a physical Kenyan office to voice their grievances. Bolt plans to expand its turf in the African market in 2024 with a €500 million investment. A fifth of that amount will be dedicated to the Kenyan market, where the company runs operations in 16 towns and cities with about 50,000 driver partners.
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- October 31 2023
Infoprive rebrands as Cybervergent, poised to revolutionise Africa’s tech sector with automated cybersecurity solutions
L-R: Business Lead, Platform Solutions, Cybervergent, Bamidele Obende; Customer Success Executive, Gbemisola Osunrinde, Cybervergent; President, FintechNGR, Ade Bajomo; Chief Executive Officer/Co-Founder, Cybervergent, Adetokunbo Omotosho and Gbolabo Awelewa, Chief Technology Officer, Cybervergent after the unveiling of Cybervergent, a pioneering technology company revolutionising the cybersecurity landscape in Africa, at the Nigeria Fintech Week 2023 on Tuesday, October 24, 2023, in Lagos. Leading cybersecurity company Infoprive has announced its rebrand at the just concluded Nigeria Fintech Week (NFW). The company formerly known as Infoprive will now be known as Cybervergent. As the world embraces digital advancements and internet accessibility grows across Africa, cybercrimes are on the rise as well. In recent times cybersecurity incidents have resulted in a loss estimated to be between $3.5 billion and $4 billion. Several banks and fintechs in Nigeria have also suffered cyber-attacks and telecoms giant MTN recently sued banks in Nigeria for losing $53 million from its mobile money service to fraud. This spate of cybercrimes is a result of the digital state of the modern world and it also calls for improvements in the cybersecurity industry. As threats in the digital landscape continue to evolve, cybersecurity companies must adapt and innovate to stay ahead of the curve. Taking this into account, Infoprive has evolved into Cybervergent to expand its security solutions to businesses and organisations. Formerly a security consulting, assessments, and remediation company, the company is now a pioneering technology company dedicated to revolutionising the cybersecurity landscape in Africa leveraging Artificial intelligence (AI) and machine learning (ML) for improved solutions. This innovative approach empowers businesses to fortify their digital assets, detect real-time threats, and respond swiftly to evolving cyber breaches. Cybervergent’s proprietary technology ensures seamless integration, allowing organisations to proactively protect their networks, data, and applications from malicious intrusions. CEO/Co-Founder, Cybervergent, Adetokunbo Omotosho, speaking on “Disrupting Digital Trust in Africa” Speaking at the NFW event, CEO and Co-founder, Adetokunbo Omotosho, emphasised the importance of maintaining digital trust by securing client data. This will allow fintechs to continue to innovate freely and scale. With increasing cybersecurity threats customers will lose faith in fintechs who do not fortify their systems. He also stated that this rebrand is a proactive step to forestall massive cybersecurity losses as the continent becomes the next growth frontier in adopting the Internet of Things and e-commerce. Cybervergent is a convergence of data privacy, security, and compliance in one automated platform. According to Adetokunbo, “Cybervergent represents not just a name change, it embodies the convergence of cutting-edge technology, visionary leadership, and our resolute commitment to safeguarding businesses in the digital age on the continent, starting from Nigeria, Africa’s largest economy. With our refreshed brand identity, Cybervergent is poised to evolve the cybersecurity landscape, offering a comprehensive suite of solutions designed to thwart cyber threats, streamline security operations, and enhance overall business resilience,” he adds. With this rebrand, Cybervergent repositions itself as a dynamic, all-in-one cybersecurity company set to transform the African cybersecurity and overall tech landscape. With its team of seasoned experts, the company will provide simplified, tailored, and automated solutions that ensure the protection of critical assets and data for businesses and organisations. This strategic rebrand aligns with the company’s unwavering commitment to pioneering the future of the continent’s cybersecurity through innovation, automation, and all-encompassing scaled solutions. To learn more and connect with Cybervergent visit the website here.
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- October 31 2023
TechCabal Daily – Kenya renews Bolt’s licence
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning This newsletter is brought to you by one sleep-deprived writer, and one sleep-deprived editor who stayed up to cover the Apple Event. Before we get into what the new MacBooks look like, you should know that Meta has launched ad-free versions of Instagram and Facebook. For €9.99 on web or €12.99 on mobile, you’ll get no ads across all Meta products. But this shouldn’t excite you unless you live in Europe where the service is exclusively available. Onto the new Apple sensations . In today’s edition Apple releases its M3 chip Kenyan regulator renews Bolt’s license Airtel Africa announces 19.7% increase in revenue MTN Nigeria’s revenues rises by 21.76% Kenya launches first phone assembly unit The World Wide Web3 Opportunities Big Tech Apple unveils new MacBook Pros with M3 chipset GIF source: Apple Today, Apple announced its latest MacBook Pro lineup, alongside its new M3 chipset, its latest chip for Macs. The new chips—M3, M3 pro and M3 Max—are the first chips for a personal computer built using a 3-nanometer technology. This means that they are smaller, more efficient, and more powerful than the previous M1 and M2 chips. MacBook Pro features: The new MacBook models include the 14-inch MacBook Pro with M3, and the 14- and 16-inch MacBook Pro with M3 Pro and M3 Max. All MacBook Pro models come with a Liquid Retina XDR display, a built-in 1080p camera, and an immersive six-speaker sound system, all supported by up to 22 hours of battery life. The release also includes macOS Sonoma, introducing a new high-performance mode in Screen Sharing that enables responsive remote access to another Mac so professionals can securely work on their content from anywhere. Pricing: The 14-inch MacBook Pro with M3 is priced at $1,599, while the 14‑inch MacBook Pro with M3 Pro costs $1,999, and the 16‑inch MacBook Pro is offered at $2,499. Additionally, the MacBook Pro models with M3 Pro and M3 Max come in a stunning new space black colour. Options for every user: The 14-inch MacBook Pro with M3 caters to a diverse audience, including students and entrepreneurs, the 14- and 16-inch MacBook Pro with M3 Pro is designed for users with more demanding workflows, such as coders, creatives, and researchers, and the 14- and 16-inch MacBook Pro with M3 Max is designed for extreme workflows, serving machine learning programmers, 3D artists, and video editors. Customers can start placing their orders for the new MacBook Pro today, with deliveries set to commence on November 7. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Mobility Kenya renews Bolt’s licence Image source: YungNollywood Bolt is driving to freedom in Kenya. Yesterday, the National Transport Safety Authority (NTSA) renewed the company’s operating licence weeks after it initially declined the ride-hailing platform’s request. Bolt had recently removed its problematic 5% booking fees in the country pending the NTSA’s decision. Why is the fee problematic? The regulator declined the initial request, stating that both Bolt and Uber were charging illegal booking fees which were contrary to Kenyan regulations. Bolt, in November 2022, introduced a 5% booking fee which it says “covers support and enhanced technological features that ensure an even more efficient service on our platform”. Uber also charges an 11% booking fee which it says is used for VAT. Initially, the NTSA didn’t appear too confident in these responses, and the regulators even received letters from drivers who threatened to strike unless the charges were removed. It appears that everything may have worked out as the company’s renewed licence indicates that the NTSA believes Bolt is adhering to Kenyan regulations. Zoom out: It may have worked out for the company, but riders in Kenya will be facing higher fares moving forward. The company recently announced a fare increase in response to Kenya’s rising fuel prices. The base fare was increased between KES70 ($0.46) and KES100 ($0.66) across the economy, base, boda, and XL categories. The minimum fare was also increased, with a range of KES200 ($1.33) and KES250 ($1.66) across the categories. Telecoms Airtel records 19.7% increase in revenue Image source: Airtel Airtel Africa reported a 19.7% increase in revenue in the first nine months of this year, according to its financial statements published on the Nigerian Exchange Group (NGX) on Monday. The result indicates that Airtel is bouncing back from a $151 million loss which it incurred in the first quarter of the year due to the naira devaluation. A mixed tale: Despite increasing revenue, the company lost $13 million after tax due to a $471 million foreign exchange loss, and a $317 million loss after tax due to the naira devaluation. Per the report, Airtel experienced double digits growth on its mobile services—data and voice—and its mobile money services. Airtel’s voice revenue grew by 11.5% and its data revenue grew by 28.1%, while its mobile money revenue grew by 30.9% in constant currency. Airtel’s customer base grew by 9.7% to 147.7 million, with data customers increasing by 23% to 59.8 million and mobile money customers growing by 23.1% to 36.5 million. Lights out: Airtel’s revenue increase shows a positive sign after the telecom battled a loss due to gruelling naira devaluation and inflation which affected consumer spending. The company is also planning to list shares on the Uganda Securities Exchange. The telco intends to sell 20% of its wholly-owned subsidiary in Uganda, Airtel Uganda Limited. The evolution of agency banking in Africa In this longform Decode Fintech piece, Paystack explores agent networks in Africa, how they converge with SMEs, and what the future of agency banking means for how money moves across the continent. Read the blogpost. Telecoms MTN Nigeria’s revenue rise by 21.76% Image source: MTN African telecoms are not giving in. MTN’s revenue in Nigeria also increased by 21.76% in the first nine months
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- October 31 2023
November 2023 SASSA payment for approved or appeals
The South African Social Security Agency (SASSA) has recently unveiled the payment details and dates for November 2023, ensuring that those in need of financial support are well-informed. Here’s what you need to know about the upcoming SASSA grant payment for November 2023: Older Person’s SASSA Grants payment Older Person’s Grants, which provide essential financial support to the elderly, will be disbursed starting from Thursday, 02 November 2023. This includes any grants linked to these accounts. Recipients can access their funds from this date, providing a welcome financial relief for senior citizens. Disability SASSA Grants payment For those receiving Disability Grants, the payment date is set for Friday, November 3, 2023. Similar to the Older Person’s Grants, this date also includes any grants linked to these accounts, ensuring that individuals with disabilities receive the financial assistance they depend on. Children’s SASSA Grants payments Families relying on Children’s Grants will see their payments deposited into their accounts from Monday, 06 November 2023. This assistance helps parents and guardians provide for their children’s basic needs, ensuring a brighter future for the next generation. Notice to all SASSA beneficiaries It’s important to note that there’s no need to rush to withdraw cash on the first day of payment. Once the money is in the account, it will remain there until it is needed, providing a degree of flexibility and convenience for recipients. SASSA is committed to supporting the well-being of South Africa’s citizens, especially in these challenging times. If you have any inquiries or require assistance, you can contact SASSA through the toll-free number 0800 60 10 11. Stay updated with the latest news and information from SASSA on their official website at [www.sassa.gov.za](http://www.sassa.gov.za) and their X (formerly Twitter) handle @OfficialSASSA. Final thoughts As the end of the year approaches, these SASSA grants offer vital financial support to those in need, emphasizing the importance of social welfare programs in sustaining and improving the quality of life for many individuals and families across South Africa.
Read More- October 30 2023
Is that fake news? Ask FactCheck Africa’s AI tool
FactCheck Africa has built an AI tool that allows people to verify news within seconds on a simple web page that’s translatable in five languages. Fake news in Nigeria affects election outcomes, security, and even banter among friends. Fake news has caused deaths during health emergencies like Ebola and misinformation leading to vaccine refusal as seen during the COVID-19 vaccination campaign. A civic society organisation (CSO), Brain Builders Youth Development Initiative (BBYDI), through its new project FactCheck Africa, has built an AI-powered tool called My AI Factcheck, to help Nigerians tackle fake news. The Global Director of BBYDI, Abideen Olasupo, told TechCabal in a virtual call that with their civic tech tool, My AI Factcheck, “we are covering disinformation and misinformation on governance and accountability, around climate change and SDGs.” Alamin Musa, who leads product development for BBYDI mentioned during the call that “FactCheck Africa uses AI and credible news sources to verify claims.” How exactly does that work? An ABC solution FactCheck Africa’s mission is clear: to empower individuals with the tools to distinguish fact from fiction. To achieve this, Musa said they “harness a synergy of artificial intelligence and reputable news sources. Combining Google’s fact-checking API with the GPT-4 model, FactCheck Africa ensures its arsenal is robust and technologically advanced.” At the core of FactCheck Africa’s solution lies a user-friendly web application. Users simply input a claim, and the AI engine springs into action. It combs the internet and scours top-tier news outlets to scrutinise the claim’s validity. The result? A resolute stamp of truth or an honest acknowledgement of uncertainty when the AI cannot provide a definitive answer. Transparency, they believe, is a cornerstone of trustworthy fact-checking. TechCabal tried out the tool with a popular fake news about the death of Muhammadu Buhari, Nigeria’s former President, and the result returned within seconds, showing two primary sources, 18 secondary sources, a sentiment analysis, and a fake news verdict. But it doesn’t stop there. The organisation pairs this technology with insights from trustworthy journalistic sources, creating a hybrid system designed for accuracy and reliability. While the solution seems a useful simple tool for people who can access it, there’s a concern for people who can’t access the internet for such a tool. To this, Olasupo explained that “FactCheck Africa is driven by a vision of accessibility. During the Nigerian elections, we did radio programs that reached more than ten million people. We’ll use the Radio to spread more fact-checks. We will also build USSD code solutions and provide a toll-free number where people can call us and our in-hour fact-checkers will verify news for the callers.” FactCheck Africa wants to ensure that anyone, from any background, can access fact-checking easily. One of the notable features of their FactChecking web tool is a translation feature including five languages: English, Hausa, Yoruba, Igbo, and French—languages predominantly spoken across West Africa. FactCheck Africa’s future At different times, BBYDI has set up projects to tackle misinformation and fake news. In 2020, BBYDI set up KnowCovid19Ng to educate Nigerians on COVID-19 misinformation. In the buildup to the 2023 general elections in Nigeria, the CSO started the Factcheck elections Ng project to validate claims from politicians to reduce the virality of fake news. When the elections ended and fake news did not stop, BBYDI, through what is now FactCheck Africa, started building the My AI Factcheck tool to house all their numerous projects under one solution for tackling fake news in Nigeria and West Africa. “Last month [September 2023], we went for the US West African Tech Challenge and I’m happy to tell you that we were finalists in the competition. The financial support we will be getting from them will help us to expand into other West African countries easily,” Olasupo told TechCabal. While Olasupo says they’re yet to know the exact amount, the competition promises $250,000 for finalists. One of FactCheck Africa’s plans for the grant is a new phase of media literacy which includes partnering with the Nigerian Union of Journalists body to reach more people, and a gamification model of their AI tool to onboard teenagers. “We are building a gamified fact-checking platform that puts players in the role of a fake news writer and encourages them to get as many followers as they can without losing credibility. Our research has shown that more kids will be interested in learning about how to counter misinformation and disinformation if it’s gamified rather than discussing it in classrooms,” Oladupo further explained. The civic tech tool’s future, while well-defined, will face several challenges, including adoption from users. However, the group is confident that their experience with civic advocacy gives them an edge in reaching people in different communities across Nigeria and West Africa.
Read More- October 30 2023
Kenya has launched $50 locally assembled smartphones
Kenyan smartphones, Neon Smarta and Neon Ultra, will be locally assembled and sold by telcos Safaricom and Faiba. Kenya has launched Neon Smarta, and Neon Ultra, two locally assembled smartphones, and the devices are now available to customers at a retail price of $50 (KES 7,500), $10 above its earlier proposed price. The smartphones were developed through a joint venture between Safaricom and Faiba, along with the assembly partner, East Africa Device Assembly Kenya Limited (EADAK). “This assembly plant will support the government’s agenda to enhance digital inclusion in the country. We have been able to achieve affordability through a collaborative approach that comprises industry partnership and favourable government policies,” Joshua Chepkwony, chairman of EADAK, said. With an expected production volume of 21,000 phones monthly, the smartphones are a part of the government’s digital literacy program, which has trained 300,000 people in 2023. Part of a broader digital transformation agenda will also see the government expand fiber connectivity to previously inaccessible areas. Low-cost smartphones are not entirely new to Kenyans. Safaricom has for a long time sold budget devices, including Neon smartphones. A few weeks ago, the Neon Smarta and Neon Ultra appeared on Safaricom’s e-commerce platform, Masoko, at KES 7,000 ($47) and KES 11,000 ($73) respectively. These are the same devices launched today but cost an extra KES 500 ($3.3). The Smarta is the smaller of the duo at 5 inches, compared to the Ultra’s 6.5-inch display. Both have 2 GB of RAM, 32 GB internal storage, and support 4G. Customers who buy a unit from Safaricom will get a single SIM variant because the telco does not sell dual-SIM devices. HMD Global, which manufactures Nokia-branded devices, had also promised to start assembling its devices in Kenya to address high smartphone prices. However, TechCabal could not get any updates about the launch from HMD Global, Nairobi.
Read More- October 30 2023
MTN Nigeria’s revenue rose by 21.76% to ₦1.77 trillion in nine months of 2023
MTN Nigeria will increase investments in data revenue after the telecommunication giant saw a slump in its profit after tax for the first nine months of 2023. While the telco’s revenue grew by 21.76% to ₦1.77 trillion in the first nine months of 2023, profits declined by 45.22% to ₦148 billion. MTN Nigeria’s CEO, Karl Toriola, said tough operating conditions and a persistent increase in inflation affected consumer spending. Other macroeconomic issues like removal of the fuel subsidy, and a currency devaluation were also mentioned. Nigeria’s 2023 Finance Act also introduced VAT on tower leases effective September 2023. Key takeaways MTN added 2 million subscribers in 9M 2023 Active mobile money (MoMo PSB) wallets increased by 53.1% to 3.6 million FinTech revenue dwindled by 5.6% Going forward, Toriola said the telco would expand their quota of 4G and 5G data subscribers. “We plan to roll out capex during Q4 to reach 83% 4G and 10% 5G population coverage by year end. In addition, we will leverage the additional 2.6GHz spectrum to enhance network capacity. This will help us sustain growth in data traffic and further drive our Own the Home strategy by leveraging the 5G fixed wireless access devices, mobile broadband solutions, and fibre-to-the-home connectivity,” he said in the earnings report. Toriola said leasing MTN’s 2,500 network sites to American Towers Corp. (ATC) was part of a move to ensure profitability in the light of challenging operating conditions. Even though he admitted an additional 12,000 sites were under the management of IHS Towers, the CEO pledged to explore ways to optimise network costs in line with their “expense efficiency programme aimed at improving operating margins.” Three things are top of mind for Toriola, they include the network, MoMo PSB acceleration, and operational efficiency. Mobile services The telco’s financial statement also reported that its services revenue grew by 21.4%, driven by voice revenue growth of 10.6% and data revenue growth of 36.4%. The telco added two million mobile subscribers to take its tally in nine months to 77.6 million. Active data users grew by 3.6 million. Active mobile money (MoMo PSB) wallets increased by 53.1% to 3.6 million, powered by 293,000 MoMo agents, and 197,000 merchants in its ecosystem. TechCabal had recently reported that the MoMo service still requires more adoption. Nonetheless, its digital revenue arm saw a 55.4% increase to 24 billion while its FinTech revenue dwindled by 5.6%.
Read More- October 30 2023
Airtel Africa’s revenue recovers from naira devaluation slump, jumps by 19.7%
Airtel Africa grew its revenue in constant currency terms by 19.7%. The company also grew its customer base to 147.7 million. Airtel Africa grew its revenue in constant currency terms by 19.7% for the half-year ended 30 September 2023, according to the company’s financial statements published on the Nigerian Exchange Group (NGX) on Monday. This is an indication that the company is recovering from the naira devaluation in June that led to a $151 million loss in the first quarter of 2023. Despite this growth in revenue, the company reported a loss after tax of $13 million, driven by a foreign exchange loss of $471 million recorded before tax. It also reported a $317m loss after tax due to the naira devaluation. Airtel classified this impact as an exceptional item. Key takeaways Airtel grew its constant currency revenue by 19.7% in the period under review. The telco recorded a loss after tax of $13 million. Airtel grew its total customer base by 9.7% to 147.7 million. “As reported in July 2023, our results for the first quarter were significantly impacted by the changes to the FX market in Nigeria, introduced by the Central Bank. Whilst the changes are required for the long-term benefit of the Nigerian economy, the immediate impact of the naira devaluation continues to weigh on our reported financial performance in the period,” Airtel Africa’s CEO, Olusegun Ogunsanya said of the financial performance. The company said all its segments delivered double-digit constant currency revenue growth despite the impact of the currency devaluation. Mobile services revenue was up 18.3%, thanks to an 11.5% growth in voice revenue and a 28.1% growth in data revenue. Airtel’s mobile money revenue also grew by 30.9% in constant currency. Airtel grew its total customer base by 9.7% to 147.7 million. Airtel’s data customers rose by 23% to 59.8 million, while its mobile money customers grew by 23.1% to 36.5 million. With its operating performance, the company hopes to grow its presence across its 14 markets on the continent. In August, TechCabal reported that the company is planning to list shares on the Uganda Securities Exchange. The telco intends to sell 20% of its wholly-owned subsidiary in Uganda, Airtel Uganda Limited.
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- October 30 2023
A clash between Nigerian banks and neobanks highlights financial industry’s complicated fraud problems
Fraud risks are rising in Nigeria’s financial system and are forcing commercial banks to devise stringent measures to rein it in, multiple industry sources told TechCabal. This follows a recent TechCabal report that Fidelity Bank, which holds ₦3.1 trillion ($3.9 billion) in consumer deposits, had restricted fund transfers to several challenger banks, including Kuda Bank, OPay, Moniepoint and PalmPay. With millions of customers across digital apps and offline payment channels, these four neobanks have become customer favorites and have entrenched themselves in the financial system in the past four years. But to win over customers, they have relied on flexible account verification processes while emphasising their push to improve financial inclusion in the country. These verification processes are at the heart of a clash between these neobanks and some of Nigeria’s biggest legacy banks. Last week, Fidelity Bank blocked transfers to neobanks over lax anti-fraud and customer verification standards, sources with knowledge of the matter told TechCabal. The restrictions remained for two weeks, those sources said. News of the restrictions polarised users on social media with speculation that the bank was trying to slow down competition. The restrictions have since been removed by Friday, Oct. 27, bank customers said. Fidelity Bank did not respond to TechCabal’s request for comments regarding these actions. Key Takeaways Fraud is a growing problem in Nigeria’s financial system. Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud since 2020. Relaxed transaction rules and flexible customer verification standards are making it easier for scammers to target victims. Nigeria’s financial system struggles with information sharing and lacks coordination on financial fraud investigations by local law enforcement agencies. But Fidelity is not the only bank concerned about fraud related to neobanks. At least two other major Nigerian banks have had internal conversations about blocking these upstarts from their list of financial services for consumer fund transfers, two financial services insiders, who asked for anonymity so they could speak freely, told TechCabal. Media reports have highlighted the scale of fraud challenges in the country. This week, BusinessDay reported that Fidelity Bank lost ₦2 billion ($2.5 million) in three attacks. Court documents posted on social media and verified by TechCabal showed that Access Bank, Nigeria’s largest bank by consumer deposits, filed a lawsuit in June to recover ₦3 billion ($3.8 million) that was fraudulently withdrawn. In July, the bank filed a separate lawsuit to recover an additional ₦5 billion ($6.3 million) illegally transferred from its coffers by scammers. Fintech startups have also been impacted. In March, Flutterwave, Africa’s most valuable startup, reportedly lost ₦2.9 billion ($3.7 million) to a cyber attack — the fintech continues to deny the incident. The mobile money service of Nigerian telecoms company MTN also lost over ₦10.5 billion ($13.3 million) in 2022 to unauthorized transfers caused by a glitch one month after it re-launched as a payment service bank. Overall, Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud cases since 2020, according to the Financial Institutions Training Centre (FITC), a financial research and advocacy organization operated by the Central Bank of Nigeria (CBN). During this period, the industry lost around 15.4% or ₦24.4 billion ($30.9 million) to grafts, including fraudulent activity across point of sales devices, internet banking, ATMs, mobile apps, and malicious digital loan activities. Fraud has long been a concern in Nigeria, Africa’s largest economy. Currency devaluations and large transaction volumes in developed markets like the US have meant that Nigerian-based scammers have historically targeted foreign companies, but that’s changing. As the value of electronic payments in Nigeria has grown to ₦387.1 trillion ($490.7 billion) in 2022, up from ₦38.2 trillion ($48.4 billion) in 2016, scammers have increased their focus on the local market. That local market is mostly a mix of fintech startups and banking industry players working to improve financial inclusion. As part of the financial inclusion drive, transaction rules have been relaxed, and customer verification standards are now more flexible. Industry experts worry that this trend exposes customers and the industry to higher risks. Phishing has become widespread, with fake social media handles posing as verified handles of local banks to collect customer information and fraudulently move monies from their accounts. It has forced GTBank, Nigeria’s most profitable bank, to fix a banner at the top of its website warning customers to “be mindful” of sites impersonating its brand. Two sources at traditional banks suggested that the verification and identity management process at banks and digital challengers is inadequate, making them susceptible to bad actors. Between April and June 2023, scammers created and operated several bank accounts, which defrauded the industry ₦5.5 billion ($6.9 million) in fraudulent loans, according to an FITC report. A 2022 KPMG Nigeria study found that only 30% of local banks have fully implemented KYC and anti-fraud measures. “Banks do not investigate sudden inflows or outflows against accounts without prior notice. When issues become frauds, the banks claim not to be able to reach customers,” a KYC expert told TechCabal. The country’s financial system continues to struggle with issues around information sharing, international collaborations and lack of coordination on financial fraud investigations by local law enforcement agencies, said the Financial Action Task Force (FATF), the Paris-based global anti-fraud watchdog group. In February, FATF placed Nigeria on its grey list over “identified strategic deficiencies.” Although the country has moved swiftly to fix some of these deficiencies, Muhammed Jiya, a director at the Nigerian Financial Intelligence Unit (NFIU), warned that Nigeria could be placed on the FATF blacklist by January 2025. The black list risks cutting Nigeria from the global financial system, making it difficult for the West African country to do business with other economies or access international financing, Jiya explained on an industry webinar in March. Policing fraud continues to face obstacles due to the uncooperative nature of several companies, industry sources explained. Traditional banks tend to work closely with one another to curtail illicit fund transfers and suspected accounts while fund recovery processes proceed. Startups are yet
Read More- October 30 2023
Bolt Kenya drops booking charges as it waits on licence renewal update from NTSA
Bolt’s operating licence update will be determined today. To appeal for a favourable outcome, Bolt has dropped booking charges. Bolt Kenya will get an update on the status of its operating licence renewal from the National Transport and Safety Authority (NTSA) after the exercise was halted a few days ago. “The licence renewal process is currently in progress with constant engagement and collaboration with the National Transport and Safety Authority, and it is expected to be finalised by Monday, October 30, 2023, as per letter by NTSA to Bolt,” Bolt Kenya said in a statement. A contentious issue in the licence renewal process is an “illegal” 5% booking fee which Bolt has now suspended. In November 2022, Bolt and Uber introduced booking fees after Kenya’s Ministry of Transport directed all e-cab companies to reduce their commission to 18%, slightly lower than their standard 20% charge. The booking fees, which are paid by customers, helped the taxi-hailing companies circumvent the reduced percentage. Per Bolt, a booking fee is for “covering support and enhanced technological features that ensures an even more efficient service on our platform.” Uber charges an even higher amount and defends it as: “A maximum possible booking fee of 11% is charged which is separate from the fare calculation above. A portion of the booking fee covers taxes, such as VAT. Uber is required by law to charge drivers VAT on the service fee. Therefore, to avoid reducing driver earnings, this booking fee is used to cover the VAT and is remitted to the KRA.” The NTSA also has concerns related to driver and rider safety. While the taxi app is incredibly popular in Kenya, customers have accused its driver partners of sexual harassment and assault. The NTSA asked Bolt to give details about how it would address these concerns as part of its licence renewal agreement.
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