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September 12 2023

TechCabal Daily-FTSE downgrades Nigeria

In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning So many people are worried that AI is creating more problems than it can solve. Yesterday, Google, an investor in Open AI competitor—Anthropic—pledged $20 million for researchers and academic institutions to work together and ensure that AI is used for more good things than bad. In today’s edition FTSE downgrades Nigeria to unclassified market Flutterwave to digitise foreign exchange in Nigeria Mtn Momo downtime frustrates subscribers. Africa’s cybersecurity crisis The World Wide Web3 Event: Moonshot Conference Opportunities Economy Nigeria demoted to unclassified market status Down down the Naira. The Financial Times Stock Exchange (FTSE) has reclassified Nigeria from frontier market status to unclassified market status. The FTSE classifies countries based on different criteria including the size and liquidity of the stock market, the stability of the country’s political and economic environment, and the accessibility of the market to foreign investors. Gif source: Tenor What it means for Nigeria: Nigeria’s demotion to unclassified market status was due to persistent foreign exchange shortages in the country. The loss of frontier market status could stir more despair for investors. Nigeria relies on the export of crude oil for its foreign exchange earnings, however, this is not enough. Nigeria currently has a backlog of $10 billion unmet dollar demand from investors. In August the Naira plunged against the dollar to an all-time low trading at N950.00 per $1. The Nigeria government made several plans to get the Naira back on track including floating the naira and a publicised $3 billion AFREXIM loan to clear the FX backlog, all without yielding tangible results. Zoom out: Nigeria’s demotion could be upturned in the coming days as the FTSE says it will continue to monitor the country’s market and that once the FX backlog is cleared it will reexamine the country’s status. Last week, the country’s apex bank declared a plan to clear the country’s FX backlog in two weeks. The CBN also launched Swap, poised to be the silver bullet to Nigeria’s foreign exchange market market problems. By digitising the foreign exchange market both the shortage of FX cash and the lack of collaboration between participating institutions is resolved. 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 Flutterwave to digitise foreign exchange in Nigeria Image source: Flutterwave Flutterwave wants to make currency swapping a breeze in Nigeria. The Nigerian fintech company has launched Swap, a new product that aims to make the process of buying and selling foreign currency more seamless. The traditional way of buying and selling foreign currency in Nigeria is through Bureau de Changes (BDCs), but that has been very inefficient due to the scarcity of forex and skyrocketing exchange fees. It takes a village: Flutterwave is doing thiscollaboration with Wema Bank (a commercial bank), and Kadavra BDC (a bureau de change), with support from the Central Bank of Nigeria (CBN). How will it work? Nigerians will be able to buy and sell foreign currency online through Flutterwave’s web app. Currently, the product is only available to registered Nigerian users and only supports dollars, euros, and pounds. To use Swap, users must verify their identity and submit documentation online. This includes their bank verification number, a selfie, the reason they need FX, and supporting documentation. Once approved, users can input their account numbers and receive the money instantly. Swap will also be available for other banks via an Application Programming Interface (API). That is not all: Starting in October, Flutterwave will provide cards for Nigerians who need quick access to their Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Zoom out: The launch of Swap comes a week after the CBN acting governor mentioned that the central bank would resolve all foreign exchange (FX) backlog issues within two weeks. 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!” Fintech MTN MoMo Rwanda experiences downtime Gif Source:Tenor MoMo users in Rwanda experience hassles. On Sunday, September 10, MTN Rwanda sent out SMS to MoMo users in Rwanda indicating that its mobile money service would be off from 1am to 5am on Monday morning. Why? The disruption in service was due to a routine maintenance carried out by the telco. However, MTN MoMo service was yet to be restored several hours after the scheduled maintenance time. Who were affected? This affected several of its nearly 7 million subscribers who rely on MTN MoMo for day-to-day business transactions and payment of bills. A way out? MTN in an early tweet said its team of technicians are working hard to fully restore the service. By 3:37pm CAT, MTN tweeted that it had fully restored MoMo service in the country. Zoom out: The recent service disruption by MTN MoMo highlights the growing reliance of businesses and individuals on mobile money services like MTN MoMo for their daily transactions. It also sheds light on the challenges telecom companies face in maintaining seamless services for millions of subscribers in today’s digital economy. Cybersecurity Africa’s cybersecurity crisis Africa’s growing digital economy depends on digital tools like bank apps, e-commerce apps, and streaming platforms. However, this shift from physical to virtual comes with significant risks, including a rise in cybercrime. In 2022, internet users in Africa grew by 8.4%, reaching 570 million, yet cyber attacks have also increased. According to the African Union, cybercrime has been on the rise in Africa, particularly in financial fraud and identity theft. A recent report by Checkpoint revealed that organisations

September 11 2023

Your next keke might be electric; here’s the company making it happen

Qore, a company backed by Sterling bank, promotes eco-friendly transportation in Nigeria by converting gas-powered vehicles to electric vehicles. Nigeria’s transport sector is the biggest contributor to greenhouse gas emissions. But Qore, a renewable energy mobility company backed by Sterling Bank, wants to reduce emissions by converting light electric vehicles—motorcycles, tricycles and minibusses—to electric vehicles. These light EVs can go up to 60 km on a single charge. “It just requires us to remove existing oil guts and then basically replace them with the batteries and electric motors,” said Akin Akingbogun, head of the Mobility team at Qore. In Nigeria, motorcycles, tricycles and mini-buses are mainly used for passenger transport and deliveries. Qore recently launched a self-serve public charging station in Lagos. It provides battery swaps for its light EVs; users can exchange their depleted batteries for pre-charged ones at Qore stations and pay for recharging and using the battery. Light EVs can go up to 60 km on a single charge. Image source: Qore Mobility Qore is testing prototypes and will deploy 100 tricycles in Kano next month. “We’ve been trying to look at all the basic physical indices, like the range, the temperature and other relevant information,” Akingbogun told TechCabal. While electric vehicles are cheaper to maintain than gas-powered cars, conversion is expensive. Olabanjo Alimi, Group Head for Renewable Energy and Transportation at Sterling Bank, couldn’t share cost estimates for these conversions. “Giving a number for the price of converting each vehicle will be misleading.” Qore’s approach is to focus on a group of clients rather than individual clients. “The more of those numbers we have, the better it is for us to blend the numbers and have more reasonable costs. ” Alimi said. Tricycles and minibuses are easily converted to electric vehicles, according to Qore’s head of mobility. Image source: Qore Mobility Charging stations need electricity, and in a country where the electricity supply is unreliable, Qore’s workaround involves using a mix of renewable energy and grid electricity supply. “We have conversations with the [electricity] distribution companies that allow us to buy a volume of electricity as a primary source, and then we use renewable energy as a backup as much as possible,” he said. Qore recently launched a new electric vehicle (EV) charging station in Lagos. The facility can refuel two electric vehicles at a time. Image source: Qore Mobility Qore’s Financing Model While the electric vehicle market on the continent is estimated to reach $21.4 billion in value by 2027, short-term progress is slow. For companies like Qore, it’s all about playing the long game. “Anyone coming into the EV market right now knows it’s not something that you begin to make money off in the very early days.” Qore currently makes money from converting Internal Combustion Engines to EVs alongside revenue from users paying to recharge their batteries. Qore currently finances two-wheelers and three-wheelers for public transport has plans to add cars and public buses into its operations. “We can finance across the entire market segments. Going up all the way to the private users or the mass transit buses is a bit tricky because the amount of energy required to apply those buses is massive”.

September 11 2023

Interswitch announces support for Google Pay on its payment gateway

Interswitch introduces Google Pay support via its Interswitch Payment Gateway (IPG), allowing users to add cards and access global transactions. Payments company Interswitch has launched support for Google Pay on its payment gateway—the Interswitch Payment Gateway (IPG). Merchants and users in Nigeria can now add their debit and credit card details to the Google Wallet app to make online payments. Users can also pay with international cards or create virtual cards for payment at the checkout. In a press release published by the company, Muyiwa Asagba, Managing Director, Digital Commerce & Merchant Acquiring at Interswitch, said, “We are proud to align with Google Pay, as it exemplifies our commitment to delivering cutting-edge payment solutions that facilitate seamless transactions for businesses and their customers. By integrating Google Pay into our Payment Gateway, we are empowering businesses to harness the potential of a global customer base while ensuring secure and reliable payments.” The company also says that aside from the tokenisation which guards against fraud, the Google Wallet integration also has a “Find my device” function with which users can secure their financial information in the event of a lost or misplaced device. According to Jenny Cheng, Vice President and General Manager of Google Wallet, this service is available to users in over 70 countries and territories, enabling payments through their Android phones or Wear OS devices. “Users can simply add their debit and credit cards to the Google Wallet app and feel confident that their financial information is safe and secure when they’re making a purchase or catching a train,” she said. This comes nearly a year after Nigeria-based fintech Flutterwave integrated the digital wallet for both merchants and businesses to make payments across Africa. Tanzanian fintech startup Nala also integrated it into its suite of payment options in the same year, enabling payments from the US and UK into Africa.

September 11 2023

Unity Bank bucks banking trend, reports ₦38bn in losses for H1 2023

Unlike its banking peers, Unity Bank’s profits declined by N38 billion in H1 2023. Unity Bank recorded losses of ₦38.8 billion during the first half of 2023, down from a profit of ₦1.6 billion in H1 2022. A large part of those losses— ₦35.4 billion–were due to foreign exchange revaluation, according to its H1 2023 financials. Unity Bank’s financial performance contrasts its counterparts, Guaranty Trust Holding Company (GTCO), First Bank, Fidelity Bank and Stanbic IBTC, whose profits doubled in the same period. “We have a high foreign currency exposure. While other banks have foreign assets, we have foreign loans that would now require more naira to pay back given the Naira devaluation,” a source at the bank told TechCabal. CEO of Unity Bank Plc, Mrs. Tomi Somefun, blamed the bank’s poor financial position on the operating environment, which impacted the bank’s growth. “What we have is a market-driven impact which is adjustable envisaged from the positive economic outcomes of the government policies in the near term,” Somefun said in a statement the bank shared with TechCabal via email. Unity Bank’s financial position has been precarious since analysts from KPMG queried its full-year ended December 31, 2022. The lender’s total liabilities exceeded its total assets by ₦274.9 billion last year, and KPMG wrote a note regarding this situation in its books, highlighting it as a “growing concern.” While the bank managed to record ₦1.04 billion profit in the first quarter of 2023, its total liabilities continued to surpass its total assets in Q1 2023, sustaining the questions over its financial health. Plans to reach profitability Somefun said the bank plans to complete its recapitalization. Presently, the lender has shifted its focus to retail growth as it eyes profitability in the near term. The bank hopes to achieve that by expanding strategic partnerships and growing commercial banking business to develop new and sustainable income lines. For 2023, Unity Bank is projecting ₦135 million in profit and gross earnings of ₦20 billion. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!

September 11 2023

Breaking: Backed by CBN, Flutterwave’s new product Swap wants to solve Nigeria’s FX problems

Backed by the Central Bank of Nigeria (CBN), Flutterwave has launched Swap, an attempt to digitise the Nigerian foreign exchange (FX) market, in partnership with Wema Bank, the 10th biggest Nigerian bank by assets, and Kadavra BDC. Flutterwave has launched Swap, a new product that will digitise the process of getting foreign exchange for Nigerians with the backing of the CBN. The fintech is leveraging a partnership with Wema Bank, a commercial bank, and Kadavra BDC, a bureau de change (BDC), to provide liquidity and foreign exchange for the product. Mr Folashodun Shonubi, the acting governor of the CBN, told reporters at a press conference last week that Swap could solve two major problems facing Nigeria’s foreign exchange market: the lack of collaboration between institutions and the dependence on cash. “No new licenses were issued, and we believe (Swap) will help moderate the rates for the BDCs and at the same time differentiate BDCs from black market transactions,” Shonubi said. Flutterwave will leverage its International Money Transfer Operator license from the CBN to bring in the foreign currency, Kadavra will use its BDC license to sell it, and Wema Bank will support the entire process. Shonubi added that BDCs that refuse to go digital would be phased out of the system as the CBN tries to make the FX market cashless. “This helps us to differentiate between what is a regulated market, which is a BDC, as opposed to the ones which the central bank does not regulate.” He shared that the apex bank would monitor all transactions on Swap and unregulated foreign transactions would stop “because of what we’re doing here today.” The launch of Swap comes a week after the CBN acting governor said the apex bank would clear all FX backlogs within two weeks. While previous attempts to clear the backlog, such as a publicised $3billion AFREXIM loan, have not yielded any results, CBN is keeping its new plans to clear years’ worth of FX backlog close to its chest. A failure to clear these backlogs will keep significant demand flowing to the parallel market and limit the CBN’s ability to offer price stability. Flutterwave partners with IndusInd Bank to expand its remittance product into India “We understand the FX access challenges individuals and businesses face. Swap is our answer to those pain points, providing a seamless and efficient platform for currency exchange,” said Olugbenga Agboola, the CEO and co-founder of Flutterwave. Swap is only available on Flutterwave’s web app and for registered Nigerian users. Users can only access dollars, euros, and pounds with the product. Flutterwave will also issue cards from October for Nigerians who require swift access to Personal Travel Allowance (PTA) and Business Travel Allowance (BTA). Users must pass multiple identity verification phases and submit documentation online before accessing Swap. They would have to submit their bank verification number, a selfie, the reason they want to get FX, and documentation to support their reason. After submitting all the required information, users can input the account numbers they want the money deposited into and get it instantly. Swap will also be available via API for banks. Despite legal issues, Flutterwave moves closer to securing Kenyan operating licence Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!

September 11 2023

TechCabal Daily-No more TikTok Live in Kenya?

In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning! The sizzling tension of a boardroom brawl where MTN is fighting for greater control over IHS Tower, the company that runs its network sites, continues. MTN Nigeria has said that it will pass its tower operations from IHS Towers to a competitor, ATC Nigeria, by the year 2025. This could seriously affect IHS Tower’s revenue. Read our report about it. In today’s edition TikTok Live may be banned in Kenya Flutterwave expands to India Digital IDs are coming to Ethiopia The World Wide Web3 Event: The Moonshot Conference Job opportunities Social media TikTok Live may be banned in Kenya Image source: Zikoko memes Kenya is trying to kill TikTok Live. Remember that meeting where Kenyan President Ruto sat down with TikTok? Well, the Kenyan Film Classification Board (KFCB) also attended, and they urged TikTok to disable the live feature to stop the growing trend of content creators making explicit sexual content on TikTok Lives at night. ICYMI: Kenya’s House of Assembly received a petition from a concerned citizen calling for a TikTok ban due to the trend of explicit sexual content on the platform. But President Ruto believes an outright ban is not the solution, considering many Kenyans are building careers through content creation. Instead, he engaged in a dialogue with TikTok to enhance content moderation on the platform. So, the burning question is, will TikTok ban live broadcasts in the East African country? The company has yet to comment on whether they will take this suggestion seriously. The only outcome confirmed from the meeting is TikTok’s commitment to launch a hub in Kenya and hire content moderators to review posts on the app. Additionally, the KFCB recommended that TikTok should also take action against those who post explicit content by shutting down their accounts and preventing them from creating new ones through the blacklisting of their phone’s IMEI number. Zoom out: Beyond Kenya’s borders, petitions to ban TikTok have also surfaced in Uganda and Egypt for similar reasons—citing concerns about immorality and threats to the nation. TikTok has already faced bans in Senegal and Somalia. However, both citizens and experts smell a rat; they think that the respective governments are banning the platform to suppress public criticism of the government. 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 Flutterwave expands into India Image source: TechCabal Flutterwave is teaming up with India’s IndusInd Bank to launch its Send App remittance product right into the heart of India. But why IndusInd Bank, you ask? Well, this bank boasts an impressive 35 million customers. This strategic alliance is all about connecting Flutterwave which already has a firm footing in 30 African countries to the economic powerhouse that is India. Zoom: This news is about to catapult Flutterwave’s IPO plans into high gear. The company has been on a roll, securing a payment services license in Egypt in June and obtaining name approval for its remittance business in August. It’s now edging closer to acquiring a money remittance license from the Central Bank of Kenya. And let’s not forget the recent game-changing integration with the International Air Transport Association’s (IATA) Financial Gateway (IFG), enabling Africans to settle their airline fees in their local currencies. Ignite your startup growth Join the ranks of Ghana’s Oze, Senegal’s Kwely, and Tanzania’s Kilimo Fresh by becoming the next MEST Africa Challenge winner and secure $50,000 in equity investment for your tech startup. Apply by 9th October 2023. Apply today! Cybersecurity Digital IDs are coming to Ethiopia Image source: Zikoko Ethiopia has partnered with Madras Security Printers Private Limited to produce new digital IDs, known as Fayda, for its 120 million people. With a bid worth $300,000, they are all set to manufacture 1 million digital IDs. ICYMI: The government initiated Fayda ID enrollment last year, and since then, over 1.4 million Ethiopians have registered. Fayda IDs will incorporate biometric information, ensuring secure access to various public services and streamlined identity verification when opening new bank accounts. Notably, the National Bank of Ethiopia, the nation’s central bank, will use Fayda as the primary ID for banking operations. Zoom out: This ID system will rely on unique personal identifiers (UPI), using iris and facial biometrics along with fingerprint identification. It marks a significant leap forward, especially when compared to the previous administration’s Huduma Namba attempt in 2018. Moreover, other African nations are also transitioning to digital identification systems, with Kenya all set to launch a digital identity solution for its citizens this month. The digital future is upon us! Beyond Limits Fellowship For Founders Calling on all African startup founders! Elevate your entrepreneurship journey with the Beyond Limits Fellowship For Founders! Gain insider insights from tech moguls such as Dr. Juliet Ehimuan, Iyin Aboyeji, Biola Alabi, and more. Thrive with robust mentorship, collaborative connections, and a golden opportunity to share in a ₦10 million grant! Don’t just step, leap beyond limits! Apply now! Fellowship.beyondlimitsafrica.com Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $25,771 – 0.18% – 12.27% Ether $1,611 – 0.86% – 12.72% BNB $211 – 0.45% – 12.01% Cardano $0.25 – 0.08% – 16.50% * Data as of 05:56 AM WAT, September 11, 2023. Elevate your business with One Liquidity’s seamless integration. Choose from 10+ services to craft a custom solution. Join Obiex, Wewire, and others in providing trading, liquidity & compliance services. Start now with zero upfront fees. One integration. One solution. One Liquidity. Events The Moonshot Conference If you’re an international fan eager to be part of this incredible event, the time has come for you to secure your seat and get an exclusive discount. Be part of the gathering of the most audacious players in Africa’s tech ecosystem and get your

September 9 2023

Kenyan digital lender LipaLater is crowdfunding $1.2 million

Despite decreasing VC interest in growth-stage startups, 5-year-old Kenyan BNPL firm LipaLater says it is not crowdfunding $1.2 million for the money. Kenyan BNPL company LipaLater is crowdfunding $1.2 million at a $30,000,000 valuation months after acquiring Kenyan online marketplace SKY.Garden, which was going to shut down due to a failed funding round. The startup is accepting investments as low as $100 on the crowdfunding platform Republic. So far, it has raised $27,228 from 29 investors. However, the company says it is not crowdfunding out of necessity. Eric Muli, the founder and CEO of LipaLater, told TechCabal, “[To date, we have raised $25 million in a mix of debt and equity, and] we recently raised a significant amount of debt investment; we have adequate funding. This public crowdfund is to raise equity investments to improve our debt-to-equity ratio.” Companies in the banking sector typically have a high debt-to-equity ratio, but they try to make sure that their ratio does not significantly exceed those of others in their industry, as then they look risky to investors. Declining to comment on the new investment the company has received, Muli acknowledged that VC interest in growth and late-stage companies has been dipping since last year. The company itself acquired e-commerce platform, Sky.Garden when it was on the verge of closure due to a failed funding round. But Muli, who claims that LipaLater is profitable, insists that the startup’s investors are very optimistic about its trajectory. “A lot of investors have been burned by their investments in companies with inflated valuations, and consequently, they are coming down hard on other startups. However, we have priced our fundraisers very conservatively from the start, so that has not been a problem for us,” he said on a call with TechCabal. He declined to disclose the valuation at which the company previously raised from investors like Founders Factory, Platform Capital, Lateral Frontiers, Cauris Finance, GreenHouse Capital, Musha Ventures, SOSV, and others. Muli also said that the company is taking the crowd-funding route because it promises to be an easy way to achieve the goal. “Some friends have raised on the Republic successfully, and that is why we opted for it,” he explained. An East African Cleantech company, Mpower, which had previously raised $1 million in a seed round, is also crowdfunding on Republic. Months ago, MarketForce, a Kenyan e-commerce platform, announced that it was raising $1 million via crowdfunding platform WeFunder. Recently, AltSchool Africa, an edtech startup, announced that it was accepting investments as low as $500 from the public in exchange for equity in the edtech. As VC deals continue to shrink, we may see more startups explore alternative fundraising paths such as crowdfunding.

September 9 2023

Nigeria’s tech trio soars: NGX-listed Chams, eTranzact, and CWG stocks up by 169%

The share prices of Chams, eTranzact and CWG, Nigerian tech companies quoted on the NGX, are up over 169% this year. If you invested ₦1 million into Computer Warehouse Group (CWG) in January, your stake would be worth ₦5 million today. The share prices of three publicly-listed Nigerian tech companies — Chams, eTranzact and CWG — are up over 169% this year. While all three firms have seen minimal movements in their share prices over the previous five years, an uptick between April and July this year has caused their market value to double. Payments company eTranzact is up over 171.4%; Chams Holdings is trading at 350% higher than any time in the last few years before April; And Computer Warehouse Group (CWG) share price has jumped 169% since the start of the year. The growth coincides with a broader trading activity on the Nigerian Stock Exchange that has pushed the market to reach a new all-time high over the previous three months. Since the start of the year, share prices of Nigeria’s most valuable public equities have grown significantly, surpassing records from 2008. However, the stock market rally doesn’t reflect some economic realities in the country, as inflation has soared to 24%, while currency devaluation has negatively impacted companies in multiple industries. The performance of Chams, eTranzact and CWG suggests growing interest in tech equities on the Nigerian bourse. Overall, the technology and communications industry sector rose 41% year-on-year compared to Q2 2022, data from the National Bureau of Statistics (NBS) shows. Analysts speculate that the surge in tech stocks aligns with the general market trends. “It is a case of a rising tide lifting all boats,” Onome Ohwovoriole, an analyst with Money Africa, told TechCabal. The three firms represent an older cohort of Nigerian technology services dating back nearly 40 years. They are among the handful of technology companies trading on the bourse while younger startups chase higher valuations in the private market or posture they will list their equities abroad. eTranzact, a two-decade-old company that offers payment processing services to individuals, merchants, small businesses and large corporates, saw its 2022 revenue rise 157% to ₦1.17 billion. Chams, a 40-year-old firm recently transformed into a HoldCo, provides identity management and payment services to government entities and private companies in Nigeria. It reported an annual income of ₦5.2 billion for 2022 and net losses of ₦375 million. CWG, which operates fintech and cloud services, has seen its share price peak this year as company insiders increased their holdings. The company’s flagship products are technology infrastructure services and cloud software services. Despite the strong performances since April, analysts warn of market uncertainty and volatility. Ohwovoriole told TechCabal it is challenging to predict the market’s direction in the near term. Mayowa Badejo, a partner at 213 Capital Ltd, an investment and risk advisory firm, stressed that all three stocks represent high-risk-high return scenarios. “While their revenues have grown over the years, their earnings have nosedived greatly due to debt servicing. They also don’t pay dividends historically,” Badejo explained to TechCabal. The price-to-earnings valuation of Chams and CWG, a key performance metric monitored by investment researchers, shows that both companies are undervalued and cheap to buy, he believes. “eTranzact has good earnings and lower debt. It is profitable and undervalued compared to its fair value but expensive based on price to earnings. The only risk is that it appears to be overvalued now,” Badejo concluded. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!

September 9 2023

Your AI doctor will see you now

AI technology may improve efficiency in healthcare operations and help with faster diagnoses. However, a data challenge remains. An estimated 371,000 people die yearly from misdiagnoses, and 424,000 are permanently disabled. Data suggests that CT scans are misread close to 30% of the time, while X-rays are misread 3–5% of the time. AI can help reduce these numbers drastically and save more lives. Obi Igbokwe, CEO of WellNewMe, a healthcare and HMO company, explains that AI could play a role in imaging. “An AI can read large amounts of those images [X-rays and MRI scans] itself and churn out recommendations to the clinician that is looking at that picture,” Igbokwe tells TechCabal. As technology continues to reshape various industries, AI stands out as a powerful tool in healthcare, offering promising solutions to address long-standing healthcare challenges and improve patient outcomes. WellNewMe offers preventative healthcare to empower individuals to take proactive steps towards healthier lives. By incorporating AI into their systems, WellNewMe can gather comprehensive health profiles of users which include medical history, lifestyle choices, and genetic predispositions. Analysing this data would enable the startup to generate personalised recommendations—which may include dietary plans, exercise routines, and wellness strategies—for the user. Similarly, Charles Kamotho, CEO of Nairobi-based Daktari Africa recognises that AI can add value in recognising disease patterns from pre-existing data and thus come up with predictive models of best care. This is applicable in diagnostics, e.g. X-rays, as well as in therapeutics, to establish the best medicines for particular conditions. Kamotho explains how this comes into practical use in Africa, considering that it’s still in its early stages on the continent. He tells TechCabal that “wearables are increasingly collecting plenty of data which will contribute to improved AI use”, and despite their novelty, Daktari Africa has “shown the impact of telemedicine in managing hypertension even in rural communities”. While Daktari Africa and WellNewMe’s AI use depends on data gathering, it raises privacy concerns. “While companies we work with can view aggregated reports of their employees on the platform, they cannot view each individual’s reports, because it’s always private data. We’ve implemented security and privacy measures on [our] platform,” WellNewMe’s Igbokwe told TechCabal. Kamotho says that Daktari operates in “compliance with the HIPAA and with the Kenyan Data Protection Act”, and that their guiding principle in how data is handled is that “all data ultimately belongs to the patient”. Igbokwe says that WellNewMe have advisors that also advise them on [General Data Protection Regulation] GDPR as well as the HIPAA of the US “Because we are trying to make sure that our solution itself will benefit other climes as well,” he says. However, Victor Famubode, an AI expert, says poor quality of data poses a challenge in the use of AI in healthcare. “Most of the data in the healthcare sector is largely unstructured, which makes it a bit difficult to use. Health data can be highly fragmented, and it requires extra effort and tools to ensure these data can be transformed into high-quality datasets for validation on models,” Famubode says. Famubode says that gathering such data could help with making predictions about certain diseases. “Because the ability to store such historical data could assist with making predictions about disease outbreaks. For example, gathering high-quality data can support startups to thoroughly identify drug targets to test towards addressing specific diseases.” While the quality of data might be an issue, another challenge for the use of AI in healthcare in Africa is the biases of medical data, says Ola Brown, a healthcare entrepreneur. AI bias occurs because human beings choose the data that algorithms use, and also decide how the results of those algorithms will be applied. Most of the current data on which AI algorithms are trained are obtained from Western countries and there is little or no input from Africa. One way to tackle this problem is to gather more data locally and use them to train more AI models. Igbokwe confirms that WellNewMe is looking inwards into rural Nigeria by building health kiosks equipped with trained locals to help gather data and onboard more people. But Famubode believes that introducing an adequate governance framework will help AI aggregate the health data of Africans such as genetic data, thereby reducing data bias. According to Famubode, the use of AI could improve efficiency in healthcare operations in the short term and help with faster diagnosis of diseases thereby improving the overall quality of life in the long term. In Africa, AI has the potential to transform healthcare for the better. Daktari Africa, which claims to be the first telemedicine platform in Kenya and the region, promises to be “a step ahead to ensure quality”. And Lagos-based WellNewMe is setting their eyes on a continental expansion, with promises of significantly improving their existing solutions before the year ends.

September 8 2023

Flutterwave partners with IndusInd Bank to expand its remittance product into India

Flutterwave, Africa’s most valued startup, has expanded into India to offer its remittance product after partnering with IndusInd, the 6th largest bank in India by assets. Flutterwave is expanding its remittance product, Send App, into India after partnering with IndusInd, an Indian bank with approximately 35 million customers. The partnership will allow Flutterwave, which is present in 30 African countries, to send money from the 5th largest economy in the world to the African continent. “The Indian expansion for Flutterwave will be the first African company to do this at scale where remittances from India to Africa become seamless and quick,” Olugbenga Agboola, the co-founder and CEO of Flutterwave, told Bloomberg. Agboola is currently in India with Nigeria’s tech minister, Bosun Tijani, and President Bola Tinubu ahead of the upcoming G20 summit. He added that the fintech will look for more partners to increase its presence in India. The fintech’s expansion into India comes weeks after Agboola announced that the startup would forge ahead with its IPO plans. Since June, the startup has onboarded several new international partners and widened its market base in anticipation of its IPO and this new partnership could serve as a boost to the Lagos-based startup’s plan to go public. In June, Flutterwave acquired a payment services license in Egypt and made Kigali its settlement hub in East Africa. In July, the fintech announced an integration with the International Air Transport Association’s (IATA) Financial Gateway (IFG) to enable Africans to pay their airline fees in their local currencies. Despite a Kenyan court freezing its accounts in June, the fintech secured name approval for its remittance business in August and is a few steps closer to acquiring a money remittance license from the Central Bank of Kenya.