- September 13 2023
Stitch launches WigWag, a social commerce payments platform for SMEs
Stitch has launched a payments product called WigWag which will allow South African merchants to accept payments from local and international cards via a unique link sent by email/SMS. South African fintech startup Stitch has launched WigWag, a social commerce payment platform which would enable small businesses to accept digital payments via a unique payment link. “With WigWag, small and growing businesses can begin accepting local and international card payments in minutes, without the need for a website or developer resources. They simply need to send a unique payment link to customers in any chat or email,” the company said in a statement. While Stitch offers scalable custom payment solutions to large enterprises, WigWag will be focused more on small businesses. After registering for the services, merchants will generate a link for a customer with the amount to be paid and the expiry time of the link. The link can then be sent via email, SMS, WhatsApp or social media chat where the customer will click on it to make a payment. “We created WigWag specifically with these small business clients in mind. Now anyone can have access to reliable payments, powered by the Stitch API, and offer their customers a truly seamless experience,” said Danielle Laity, WigWag product manager at Stitch. Responding to a question from TechCabal on the charges associated with the product, Laity stated that WigWag will charge 2.95% of the amount that merchants get paid. For customers paying you with a non-South African card, WigWag will charge 3.4% of the purchase amount to supposedly cover the foreign exchange. Additionally, each payout will garner an R2 charge, all fees excluding VAT. According to data by Deloitte, 51% of surveyed SMEs indicated they had encountered strong interest from customers in making payments with a card, showing the potential of a solution like WigWag in facilitating such payments. SMEs make up 29% of all businesses in South Africa. Stitch emerged from stealth in February 2021 and expanded into Nigeria in October 2021. The firm raised $21 million in Series A funding in February 2022 to expand its payments API product.
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- September 13 2023
2023 Hustler Fund application full details
The Kenyan government introduced an innovative digital financial inclusion program known as the Biashara loan. This initiative is designed to empower micro-SMEs by granting them access to loans with remarkably low-interest rates. Here we outline the divisions of the Hustler Fund loan and how to go about your application. The Hustler fund Biashara loan application The Biashara loan is a key component of the larger Hustler Fund Personal Loan Product. It acts as a revolving fund, extending credit to both small businesses and individuals who lack collateral or a formal banking pedigree. The Biashara loan is divided into two segments: individual and group. The newly launched individual micro-enterprise loan product will provide loans ranging from KES 10,000 to KES 200,000 at an interest rate of 7%, calculated on a pro-rata or daily basis. Repayment terms for the loan are highly flexible, with options of 1, 3, 6, or 9 months, and a maximum term of one year. How to register for the Hustler Fund Biashara loan To register for the Biashara loan, prospective beneficiaries should dial *254# on their mobile phones. They will then need to select their business category (options include agriculture, trade, manufacturing, and service providers). Additionally, they must input their business registration number and the KRA pin associated with their business. Eligibility criteria for the Hustler Fund application To qualify for the Hustler Fund application for the Biashara loan, applicants must meet the following requirements: 1. Possess a valid Kenyan National ID. 2. Be a Kenyan citizen aged 18 years or older. 3. Maintain an active SIM card from any mobile network operator. 4. Hold a business number for a business that is registered with the Business Registration Service (BRS). 5. Possess a KRA pin linked to the registered business on the BRS. Final thoughts The Biashara loan provides adaptable loan limits and repayment durations tailored to each customer’s specific needs and capacity. Customers even have the option to increase their existing loans, provided they meet certain criteria. The introduction of the Biashara loan is expected to stimulate economic growth and generate job opportunities for countless Kenyan micro-SMEs operating across diverse markets.
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- September 13 2023
Entering Tech #40 – Sorry, but marketers are out of stock
Here’s the skill you need to succeed in the AI age. 13 || September || 2023 View in Browser Brought to you by Issue #40 Should marketers wear many hats? Share this newsletter Greetings ET people We’re back with new episodes of Entering Tech Shorts. In this week’s edition, Uchechukwu Azubuko, frontend engineer at OneLiquidity tells you what you need to know about getting started with frontend engineering. If you missed the last season, take a peek here. by Timi Odueso & Faith Omoniyi. Tech trivia Some tech trivia to get the brain juices flowing. What is the recommended character limit for a meta description tag in search engine optimization (SEO)? According to the Pareto Principle, what percentage of a company’s customers typically generate 80% of its revenue? A “marketer” of all trades In August, Milton Tutu, Chief Marketing Officer at Selar sparked conversations about how marketing talents take on multiple roles in tech startups and were often undercompensated. As expected, responses began to flood in under Tutu’s tweet, and the discussion rapidly spun into a debate between startup founders and marketing talents. While some argued that a startup’s budget might be a limiting factor to hiring sufficient marketing talents, others argued that marketing talents were not as important as product builders like software engineers—because you know, all products sell themselves. “I think people should learn how to stick to their budget. If your budget can only hire a social media manager then stick to that,” Tutu tweeted. “Milton, have you seen the economy?” tweeted Jude Dike, CEO of GetEquity. While Dike’s counter comment might blame the country’s stringent economy as a cover for not employing sufficient marketing talents, Tutu argues that it is not an adequate excuse. “Chief, is it only with marketing talents we look at the economy? What about engineers and product designers (technical talents)? Why don’t we hire one technical talent to do 3–4 different roles? “Stick to your budget and hire what you can afford. If it’s only a social media manager you can afford as a start, hire that and don’t try to give you a social media manager.” Reading through the comments under Tutu’s thread, another tweet popped up: It appears as though people are conflating different social media roles. So let’s get into it. What are the different roles under marketing and who should be responsible for what? The many hats of marketing What marketers think While the conversation on twitter took several turns, with several founders arguing against the motion, today’s #EnteringTech edition looks at the dynamics from the lens of content marketing leads. They give their best advice on what should be the norm and best practices in the marketing space. “Many early stage startup founders do not understand that content and marketing are different skills,” said Ama Udofa, content marketing lead at Vendease. “They are focused on sales. They don’t really understand that they are different skills. A lot of them don’t understand that building a content engine is long-term play; it’s about building the foundations, it’s about building the community, it’s about building an infrastructure for information so that as you grow and scale, your new users have a bank of information. Many of them are just focused on sales.” Image source: Zikoko Memes Damilare Fakorede, partner and brand and marketing at GrowthMax Africa is of the opinion that startups should have two marketing talents: a head of marketing and a community manager. The Head of Marketing would oversee a startup’s overall marketing strategy and direction, coordinate with other departments to align marketing efforts with business goals, and handle high-level decision-making for marketing campaigns. While the community manager on the other end should be someone skilled at building an engaged customer community deploying content that resonates with the startup’s core audience. This unique combo will drive a startup’s growth efficiently in the short and medium term. Mibiola Ifeoluwa, content lead at BrandEye, is of the opinion that handling multiple roles makes a startup’s marketing less efficient and overwhelms the talent. “One person should not handle more than three roles, especially based on expertise and based on the person’s strength,” she said. Micheal Inioluwa, marketing lead at Cowrywise agrees with this sentiment, “While starting small and working within their budget is understandable, startups should manage talent expectations and know that there’s a limit to how much deep work a marketer can do if they have to juggle five roles at the same time.” Image source: YungNollywood While Ama acknowledges that a startups budget might be an hindering factor to employee multiple marketing talents, he says that a startup should hire a generalists who can handle multiple tasks and be compensated duly. “If you’re going to hire one person to do three people’s jobs, I think you should pay three people’s salary,” he said. Damilare believes that there is talent for every budget and that the goal of every startup will be to find the best talent that matches the startup’s budget. In the next edition of #EnteringTech, we will bring you perspective from startup’s CEOs to understand how they are thinking about the subject matter. Tell us how we’re doing We’re always telling you what to do. It’s time to return the favour and teach us instead. Fill our survey and let us know what you think Ask a techie Q. I am a UX designer and a product designer. I recently started a UX course on Coursera and currently. When is the right time to start applying for internships and how should I position myself? I am already working on my portfolio and would love to know how best to put myself out to hiring managers for internship roles. Here are some tips on how to position yourself effectively for an internship: Start early. The timing for applying for internships can vary, but it’s generally a good idea to start thinking about them early, especially if you’re still in the early stages of your course. Develop a strong
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- September 13 2023
Veteran investor Olumide Soyombo launches memoir “Vantage”
One of Nigeria’s most prolific investors, Olumide Soyombo on Tuesday launched “Vantage”, a memoir of his early beginnings, foray into entrepreneurship and investing as well as key lessons from his business journey. In August, TechCabal reported that Olumide Soyombo, the co-founder of Bluechip Technologies and founder of Voltron Capital, announced his business memoir, “Vantage,” and on Tuesday, the book was formally launched at an event in Lagos. The memoir—divided into three parts—captures Soyombo’s early beginnings, his foray into entrepreneurship and investing, and lessons from his experience as a veteran in Africa’s tech ecosystem. Soyombo’s book follows an uncommon culture of Nigerian business leaders sharing the untold stories of their industry. In the book, Soyombo—one of Nigeria’s most prolific investors and earliest backers of some of the country’s notable startups, including Paystack and PiggyVest—answers questions about his business journey and pioneering role in the evolution of Nigeria’s tech ecosystem. Herbert Wigwe, Group CEO, The Access Corporation, in the foreword of the book, described “Vantage” as “the most important book so far written on the burgeoning tech space in Nigeria.” One key takeaway from Soyombo’s business journey is the role of mentorship in the success of businesses and their owners. In the book, he referenced a scathing email he received from his dad—and first investor—on the 11th of February, 2013, after he and his partner, Kazeem Tewogbade (Kaz) splurged on two Mercedes Benz E-Class cars. Two years later, Olumide sent a similar mail to the co-founders of PushCV—the company that later transitioned into PiggyVest—questioning their spending of the last $50k he invested in the company. “The idea is not to harvest your rewards in the beginning, especially when you know that with the prospects of your startup, the reward will come in droves,” Soyombo wrote in the book. At the book launch event, the Olumide Soyombo Education and Entrepreneurship Foundation was launched to place one million copies of “Vantage” in the hands of one million young Africans. The thinking with this knowledge-sharing is to nurture the next generation of business leaders and tech entrepreneurs on the continent. Soyombo said, “I am very optimistic about the future for investing in Africa. I believe that the best place to build is in Africa and in Nigeria.” Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- September 13 2023
TechCabal Daily-Sendy delivered, but at what cost?
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Have you see the new iPhones? They come in delicious candy tones. There is also a new Apple Watch, the Series 9, and it is faster and carbon-neutral! Also after 11 years, Apple has ditched the Lightning plug for a USB-C cable just as the EU has been asking it to do to reduce e-waste. In today’s edition Sendy’s firesale ignited by $1million monthly burn rate Nigeria restricts banks from utilising FX gains Kenya to implement digital ID program President Ruto plans to reduce corporate tax The World Wide Web3 Event: Inside Identity Opportunities Fintech Sendy’s firesale ignited by $1million monthly burn rate Sendy delivered, but at what cost? The Kenyan logistics startup which shut down operations last month, and is now seeking a buyer, was reportedly burning through a whopping $1 million every month. Image source: TechCabal A little back story: According to sources familiar with the comapny, the business took a nosedive when costs rose due to factors like iterative fuel price hikes from 2022 and the August 2022 Kenyan elections that had many people apprehensive. The sources explained that as a result, many manufacturers scaled down production, which meant fewer deliveries for Sendy. But they still had to cough up money for expensive fuel. As Sendy continued making deliveries at a loss, it was banking on a market correction and order volumes to return to normal. However, the fundraising environment worsened, forcing the company to lay off staff to extend its runway. There’s more. Sources also say that Sendy has undisclosed financial obligations that’s made it tricky for them to find a buyer. These obligations, which may have to be absorbed by the buyer, are a crucial reason why a sale has been complicated. Sendy has two main products; Sendy Transport and Sendy Fulfillment, but it seems what potential buyers are really after is Sendy’s nifty technology. According to a source, they’ve got top-notch software for booking and tracking transport vehicles. Zoom out: Wasoko and Sabi are among the companies rumoured to be interested in buying Sendy, but they have declined to comment regarding sendy at this time. In August, Sendy’s CEO, Mesh Alloys, initially said a deal would be closed in two weeks, but it’s all gone quiet on that front. 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. Banking Nigeria restricts banks from utilising FX gains Image source: Zikoko Memes Nigeria’s apex bank has restricted Deposit Money Banks (DMBs) from using gains gotten from foreign exchange (FX) revaluation for dividends and operational expenditures. Why? This move was implemented so as to “cushion any future movements in FX rates”, the CBN said in its directive dated September 11, 2023. What is forex revaluation? Forex revaluation gains occur when the value of a bank’s assets and liabilities, denominated in foreign currency, increases due to fluctuations in the exchange rate between the foreign currency and the local currency. The naira fell short of the dollar by almost 40% in June causing Nigerian banks to amass significant foreign-exchange gains. Zoom out: While many Nigerian banks have benefited from the forex revaluation gains, some of their customers bore the brunt. Several experts believe that Nigerian banks have nothing to lose by following the new CBN’s directive. They believe that not only will the banks keep their profits, they will also be better prepared for future economic shocks. Boost your startup growth Boost Your Startup Growth with Verified.Africa x GDG Lagos! Get up to $5,000 in free credits for real-time ID verification and seamless customer onboarding. Join our accelerator program, powered by Africa’s leading KYC provider, Verified.africa. Gain access to top-notch mentorship and a vibrant tech community at GDG Lagos, where developers, designers, and tech enthusiasts connect. Don’t miss out – Learn more now!” Policy Kenya to implement digital ID program Gif Source: Zikoko Memes The Kenyan government has allocated a budget of KES 1billion ($6.9 million) to introduce digital identification cards to its citizens. Per TechMoran, the Kenyan government will issue a Unique Personal Identifier (UPI) or Maisha Number to every Kenyan from birth. This number will serve as a primary identification credential for Kenyans. Kenyans will be given a two to three-year window to seamlessly transition to the new UPI system. Registration for the UPI is set to commence on September 29, 2023. The Kenyan government will also begin phasing out the existing second-generation ID card. Zoom out: Across Africa, identity systems are largely paper-based. The World Bank estimates that at least 500 million people in Sub-Saharan Africa lack proof of legal identification. Kenya joins a growing list of African countries—Lesotho, Mozambique, Tanzania, Uganda, Zambia and Zimbabwe—adopting digital identity cards. Policy President Ruto plans to reduce corporate tax Image source:TechCabal Kenya plans to cut corporate income tax (CIT) on earnings for resident firms to 25 percent from the current 30 percent. The country is trying to align with average international rates to attract foreign investors and increase tax obligation compliance with the businesses that are already in the country. a more competitive 25 percent. Side bar: Kenya’s tax rate is higher than the global average of 23 percent. Per Business Daily, 759,164 firms registered for corporation tax for the year ended June 2022, but only 84,428 paid the dues remitted quarterly. When will this happen? The reduction will come into effect from July 2024 and end in June 2027. However, this means that companies that already pay preferential tax rates as low as half the standard rate on profit will have to step up to the new 25%. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $25,933 + 2.99% – 11.94% Ether $1,597 + 2.74% – 13.72% BNB $211 + 2.69% – 12.18% Cardano $0.24 +
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- September 12 2023
Exclusive: How $1 million monthly burn rate forced Sendy to consider a firesale
Reduced order volumes and fuel price hikes meant Sendy was making deliveries at a loss, with a reported monthly burn rate of $1 million. Sendy, the end-to-end fulfillment platform, which shut down operations last month and is now seeking a buyer, was reportedly burning up to $1 million monthly at the height of its operations, a source familiar with the matter told TechCabal. Despite raising $20 million in January 2020 in a funding round led by Atlantica Ventures, Sendy began seeking buyers in August as costs continued to climb. One source told TechCabal that costs rose due to factors like iterative fuel price hikes from 2022 and the August 2022 Kenyan elections that had many people apprehensive. “Most manufacturers scaled down production,” the source said, asking not to be named as they’re not approved to speak on the issue. “It meant reduced volume for Sendy as they continued transporting at higher fuel costs.” Because the logistics industry relies on economies of scale, small volumes present challenges, including higher costs and longer delivery times. As Sendy continued making deliveries at a loss, it was banking on a market correction and order volumes to return to normal. “In situations like this, breaking even becomes a challenge, and you need funding to keep going,” the source explained. However, the fundraising environment worsened, forcing the company to lay off staff to extend its runway. One source described a company that was running on fumes. In July 2022, it cut its workforce by 10% and made deeper cuts in October 2022 before exiting its Nigerian business later in February 2023. While sources close to the situation said Sendy has outstanding obligations, TechCabal could not independently verify the amount involved. But those obligations, which may have to be absorbed by the buyer, are a crucial reason why a sale has been complicated. One publication reported that three buyers were in talks to buy Sendy. The startup has two products: Sendy Transport and Sendy Fulfillment. With Sendy Transport, businesses can find motorbikes and vans for transportation. Through Sendy Fulfillment, manufacturers were offered comprehensive services like pick, pack, ship, and warehousing. One source said the acquiring companies are primarily interested in Sendy’s proprietary technology. “Sendy has built great software to hail and track transport vehicles,” a source familiar with the talks told TechCabal. “The acquiring company can use the software to start a similar service that Sendy was running or use the software to run its fleet.” Wasoko, one of the companies reportedly in talks to buy, told TechCabal via email, “We cannot comment specifically regarding Sendy at this time; however, Wasoko continues to explore strategic opportunities to expand its capabilities across Africa.” Sabi, another company linked with the transaction, also declined to comment. Mesh Alloys, Sendy’s CEO, declined to comment on possible buyers in August but told TechCabal he expected a deal to be closed in two weeks. After the two-week period, Alloys did not respond to calls and messages from this publication. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- September 12 2023
Happy mothers in Kenya have LUCY to thank
This story was contributed to TechCabal by Lucy Githugo via bird story agency A pregnancy and newborn health app that was first launched in South America is helping Kenyan women experience positive outcomes for themselves and their babies. Deep in the hills of Kajiado, Kisii, and Migori counties in western Kenya, expectant mothers are rewriting the narratives of their pregnancy experiences. And they have LUCY to thank. On the morning of August 12 2023, in Kenya’s bustling border town of Namanga in Kajiado County, 27-year-old Ann Warenga delivered a newborn baby girl. To her joy, baby Ann, whom she named after herself, was born healthy and weighed 3.7 kilograms. Just a few kilometres away, 31-year-old Rebecca Nduta, three months pregnant, was excited about her pregnancy. The two mothers have markedly different testaments compared to their previous pregnancies. Warenga, a mother of two boys, acknowledged that all three of her pregnancies were unique but hastened to add that the latest was the smoothest and most relaxed—thanks to LUCY. “The knowledge I have gained through this app is something I genuinely never encountered during my pregnancies with my sons. LUCY has been so beneficial that I have not felt the need to visit the clinic even when I had moments of pregnancy anxiety,” Warenga shared. Nduta, who has one child, echoes similar sentiments with an emphasis on her improved pregnancy journey in her second pregnancy despite bad morning sickness. “The biggest challenge in my first trimester is the morning sickness. However, unlike my first pregnancy, right now I can overcome bad days faster and more effectively because LUCY gives me tips on how to tackle them,” Nduta disclosed. Not only for Warenga but for other expectant mothers in these rural areas, LUCY has emerged as an unexpected and invaluable companion during the most critical times, providing comfort, guidance and a supportive community for women on similar journeys but who often live deep in the countryside and are physically isolated. LUCY was launched in the area in April 2023, through a collaboration between Kenya-based Amref International University, and Health(e) Foundation, a global health e-learning platform which developed the app through a collaboration between the governments of the Netherlands and Suriname. Through a project dubbed “Tekeleza”, LUCY improves access to medical information and care for women in the area through an evidence-based digital solution. The app adheres to international guidelines and the national immunisation schedule, while being culturally sensitive to the needs of Kenyan women, communicating with them in their own language. Warenga and Nduta are just two of the expectant women in these three counties who have benefited from Tekelaza, which sees community health promoters trained by Amref International University conducting door-to-door household visits, organising gatherings, showcasing the app’s capabilities and highlighting its potential to transform the lives of expectant mothers in rural areas of Kenya. Abdiah Salah, a community health promoter in Namanga, said the response from expectant women had been overwhelmingly positive. “The community and women appreciate the reliable resource that guides (them) through pregnancy. The women also connect with a supportive community and as a result, we are seeing a more informed and engaged community of expectant mothers,” Salah said. Kajiado Community Health Assistant Officer Suzanne Marima, who doubles up as the head of health promoters in Kenya, expressed her enthusiasm about the project’s potential to revolutionise maternal and child healthcare. “This is a good project for the growth of the community. In the few months that we have been in the field educating women, we have noted a tremendous uptake of the use of the application. We ensure that when a woman has her first antenatal visit to the clinic, we sign her up on LUCY immediately,” Marima explained. To get started on LUCY, expectant women just tap their details into their smartphones. Thereafter, they interact with the navigation process of the app which includes health information, clinic visits calendar, mood tracker, and profile tabs. The information obtained from the app is based on the gestational age or the age of the newborn. After keying in the first day of her last menstrual period, LUCY automatically calculates a mother’s expected delivery date and provides daily information, through notifications, specific to her pregnancy. Tekeleza Project Manager, Priscilla Ngunju, said that at least 250 women in the area had already signed up and as sensitisation continues, the numbers are expected to go higher. “It was important to integrate the app to ensure that mothers were receiving credible information while at home. Currently, collection of data of user experience is ongoing and this will advise on the development of additional features in the next six months,” Ngunju noted. The Tekeleza project has also incorporated another mobile application known as Mjali. Community Health Promoters use Mjali to enrol mothers in “Linda Mama,” a free health insurance program covered by the Kenyan government to provide ante-natal, childbirth, and postnatal care for ease of monitoring of health outcomes. At the 2023 World Health Assembly in Geneva, Switzerland, Kenya was recognized for its exceptional performance in reproductive, maternal, newborn, child, and adolescent health. According to the 2022 Kenya Demographic Health survey, childhood deaths have been on a steady decline in the past ten years, with under-five deaths also seeing substantial reductions. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- September 12 2023
Next Wave: Africa is years away from adopting eco-friendly transportation
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner First published 10 September 2023 Legislators and electric vehicle (EV) manufacturers often do not disclose their motivations for promoting the climate change agenda in a continent that could face additional environmental problems should EVs be adopted at scale. Last week, the Africa Climate Summit was held in Nairobi, Kenya. The conference was attended by key delegates from African countries, international organisations, and the private sector. The summit was a significant event for Africa, as it was the first time African leaders had come together to discuss climate change on a continent-wide scale. It also served as a platform for multiple electric vehicle (EV) companies—including BasiGo, which serves Nairobi with 20 electric buses for public transport—to showcase their products. The argument is that vehicles powered by fossil fuels are bad for the environment, and there is a need to shift focus to EVs as they do not use an internal combustion engine (ICE). This makes EVs a clean and eco-friendly alternative to vehicles powered by petrol or diesel. But is that the case? Chart by TC Insights EVs are often seen as a solution to climate change but are not without problems. They still rely on a consumerist and car-based approach to transportation, which is not sustainable in the long run. Besides, producing electric cars can harm the environment, and EVs do not address the root causes of climate change. Carbon emissions from transport in Africa Africa has about 72 million vehicles, but only seven of its 54 countries are responsible for most of the greenhouse gas emissions from transportation. The emissions are growing at an alarming rate of 7% per year. This is due to poor fuel quality, old vehicles, and the lack of mandatory emission tests. More than half of African countries have quality worse than European fuel quality from 30 years ago. Assuming we don’t effectively tackle climate change and the air pollution generated by ICE vehicles, we’re facing some major issues: a widespread decline in animal and plant species, a surge in natural disasters, severe air pollution, depletion of water resources, and many other challenges. Given the substantial emissions coming from road vehicles, it’s clear that we must cut the dependence on diesel-powered engine vehicles. The solution often debated is the choice between electric vehicles and ICEs, but EVs alone might not provide a solution, given that they lack range. Partner Content: A tech group is empowering deaf kids in northern Nigeria And this is the primary problem… The major issue with electric cars is carbon lock-in. This occurs when notable investments are made in resources such as power plants or EVs, creating incentives to keep using them. Companies and governments are reluctant to switch to better solutions because of the hefty capital investments and associated opportunities. This puzzle extends to EV companies, who may not prioritise the most effective climate crisis solutions. Afterwards, moving away from temporary fixes like mass electric car retrofits is challenging. It is better to think beyond these partial measures to address the climate crisis. Instead of investing in massive electric car investments, Africa could allocate resources more effectively, such as building mass transit and promoting sustainable construction practices that enhance walkability and micro-mobility options. Breaking free from a vehicle-centric system is the real transformative thinking needed. Partner Message Unlock new opportunities for your business with Vesicash! With our secure, all-in-one and cost effective payment insfrastructure, you can seamlessly expand into emerging markets. Reach out to our dedicated team at info@vesicash.com Click here to learn more More problems exist Electric vehicles offer several advantages, such as being safe to operate indoors and having a greener footprint. However, they face three significant challenges. First, battery technology lags due to a historical setback in development. Lithium-ion batteries, common in electric cars, have limited energy density and pose safety risks in case of fires. Their production isn’t environmentally friendly, too, needing recycling to prevent pollution. Second, the African electrical power infrastructure lacks headroom, often relying on outdated and polluting energy sources. Electric vehicles draw substantial power, mostly during non-renewable energy peak periods, compromising their environmental benefits. Third, insufficient neighbourhood electrical capacity discourages the widespread use of electric vehicles, leading to business operational challenges. Consider the situation in South Africa, Africa’s most industrialised economy. This year, the country has experienced frequent power outages lasting 10 hours daily. At the start of the year, even though only half of the population is connected to the electrical grid, many neighbourhoods could only support their power needs for a maximum of six hours per day. Is this the same infrastructure that is set to sustain EVs for transportation? Commuters need to question the real reason for EVs push Legislators often avoid discussing that electric vehicles cannot fully address the environmental issues associated with transportation. On the other hand, EV manufacturers are eager to promote electric cars as a solution, advocating for tax credits and incentives to encourage their adoption, which translates to more sales. But the reality is that electric vehicles can functionally not resolve carbon emission problems quickly and gainfully. Besides, focusing on electric buses and cars as a primary mode of transportation is highly inefficient in terms of urban space, which is another vital aspect of the climate change problem. Partner Message In an increasingly interconnected world, the significance of identity cannot be overstated; it is a fundamental aspect for both developed and developing economies. To understand the intersection between digital identity and economic development, join us on Friday, September 15th, at 11 AM (WAT) for the 8th edition of Inside Identity. Register here to join the event To make electric vehicles truly eco-friendly, Africa needs advancements in solid-state batteries, increased green energy sources like nuclear or geothermal, and the expansion of micro-grid technologies. These features and technologies are crucial for alleviating the issues associated with climate change, but full implementation may take time. That’s not all: Africa needs a robust grid capable
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- September 12 2023
Vodacom to compete with Elon Musk’s Starlink
This article was contributed to TechCabal by Conrad Onyango via bird story agency. Vodacom Group is readying to introduce mobile satellite internet terminals—a service that would put the telco in direct competition with Starlink in a race to connect tens of millions of unserved and underserved mobile customers across Africa. The hope of getting hundreds of millions of users connected to high-speed mobile broadband in Africa’s remote and rural locations is inching closer, as competition in the satellite internet market intensifies. Vodacom recently entered into a space previously reserved for Elon Musk’s SpaceX-owned satellite internet provider, Starlink, through a partnership with tech giant, Amazon, according to South African online tech platform, Ventureburn. The move would allow Vodacom to extend 4G and 5G services in Africa via satellite. According to the tech platform, the partnership expands the South Africa-based telco portfolio to include serving individuals, residential places and businesses via customer terminals. This puts it in direct competition with Starlink, across a major section of its African footprint. Vodacom will leverage on Amazon’s constellation of 3,236 satellites in low earth orbit (LEO) to connect cellular antennas in “geographically dispersed locations” to its core telecom networks, under Amazon’s initiative, Project Kuiper. The South African-based telco said the partnership gives it the ability to offer 4G/5G services in more locations without the time and expense of building out fibre-based or fixed wireless links back to the core networks—shifting the war into a race for customer numbers. “Collaborating with Project Kuiper gives us an exciting new path to scale our efforts, using Amazon’s satellite constellation to quickly reach more customers across the African continent,” said Vodacom Group Chief Executive Officer, Shameel Joosub in a joint statement. Barely three months ago, Vodacom through its parent company Vodafone, disclosed plans for a direct-to-smartphone satellite service that connects mobile phones to a data service without a modem, in a partnership with Texas-based AST SpaceMobile. Starlink is also planning to venture into this space, having planned tests with T-Mobile in the US, and it is still unclear when or if the service will be expanded to Africa. GSMA’s State of Mobile Internet Connectivity 2022 shows the mobile coverage gap (areas not covered or connected) has reduced by more than 50% to 190 million people and usage (covered but not connected) by 14% to 680 million people over the last five years. Mobile broadband investments have helped the region improve its network quality, with the biggest improvement seen in narrowing of the gap between 3G and 4G coverage from 45% in 2017 to 25% in 2021. Despite these developments, Africa’s coverage gaps remain the largest in the world according to GSMA, due to slow growth in internet speeds and high cost of data, especially in the Sahara region. “Network quality continues to improve, but download speeds are yet to exceed 10Mbps … Sub-Saharan Africa is the only region where the cost of 1GB of data as a percentage of monthly GDP per capita exceeds 2%,” said GSMA in the report. The widest coverage gaps are in Central Africa, where 39% of the region’s population lives outside a mobile broadband coverage area, followed by West Africa (16%), East Africa (13%) and Southern Africa (12%). In March 2023, Amazon unveiled a set of satellite receivers under Project Kuiper, targeting tens of millions of customers with customer terminals that will cost less than US$500. Amazon’s smallest portable satellite terminal, offering speeds of up to 100Mbps, will be sold for US $100, while its standard customer terminal will go for less than US$400. Vodafone, Vodacom, and Project Kuiper have also announced exploring a provision for backup services in case of unexpected events as well as connectivity expansion for remote infrastructure, as they prepare to test two prototype satellites with select customers by the end of 2024. Vodacom operates in South Africa, Egypt, the Democratic Republic of Congo, Tanzania, Mozambique, Ethiopia and Sierra Leone, with more than 185 million customers. Starlink, with 1.5 million subscribers, offers—through its Roam and Residential subscriptions—a more expensive service, starting at US$600. The company’s satellite internet is available in Kenya, Nigeria, Rwanda and Mozambique. By year-end, the company is eyeing Chad, Mauritania, Angola, Namibia and Somalia. It is yet to get a licence to operate in South Africa. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More- September 12 2023
After completing a $5m debt raise, Lipa Later plans to raise $20m more
Kenyan fintech Lipa Later has secured $5 million in private debt issuance, but the company still wants to raise $20 million for expansion plans. Kenyan fintech firm Lipa Later Group has raised KES 500 million ($5 million) in a privately placed debt issuance. The startup will raise an additional KES 2 billion ($20 million) in equity and debt to fund its expansion plans in Kenya. It is currently crowdfunding $1.2 million in exchange for equity at a valuation of $30,000,000. The five-year-old company is trying to raise $25 million, the same figure it previously raised in equity and debt from investors like Founders Factory Africa Platform Capital and others. But it is doing so at a time when VC appetite for growth and late-stage startups is lower than it has ever been. Lipa Later declined to share specific information on its $5 million debt issuance. The details of the individuals who have contributed to its ongoing $1.34 million crowdfund are easily found on the crowdfunding platform Republic. In a press release seen by TechCabal, Eric Muli, the CEO and founder, said the funding, obtained from a diverse group of investors, will “enable us to enhance the infrastructure, making our financing solutions even more accessible and convenient for our customers”. Despite the discouraging VC funding scene, the five-year-old company is very optimistic about its future. “With the support of our stakeholders and investors, we are confident that we can achieve our goal of making financing more accessible and inclusive for all,” Muli said.
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