Code to check BVN 2023
Bank Verification Number (BVN) is a unique identification number that helps streamline banking operations and enhance security in Nigeria. After the unification of USSD by most network providers in Nigeria, there has been a scramble to keep up with other USSD codes. However, the code to check your BVN hasn’t changed from what you’ve known. In this article, we’ll reacquaint you with the code and the simple steps to check your BVN. You may also want to learn how to check your BVN details like name, age and the likes. If so, read this. 1. Understanding USSD Codes USSD codes are a convenient way to access various services provided by your mobile network operator or financial institutions. They are shortcodes typically dialled on your mobile phone and used to initiate a session-based communication. BVN-related services have also been integrated into USSD systems for quick checks. 2. Dialing the USSD code to check BVN To check your BVN using USSD, the code hasn’t changed. Just follow these steps: a. On your mobile phone, open the dialer or phone app. b. Dial the USSD code *565*0# bank c. Press the call button to initiate the USSD session. 3. Follow the on-screen prompts after dialling the BVN check code Most times, after you dial the code, you should immediately get a prompt on your screen displaying your Bank Verification Number. But it may be different for you. On such different occasions, once the USSD session is initiated, a menu will appear on your screen with a list of options related to BVN services. Look for the option that allows you to check your BVN and select it by entering the corresponding number or pressing the appropriate key. 4. Receiving the BVN details After selecting the BVN check option, the system will retrieve your BVN details from the database. Within a few seconds, you should receive a message on your screen displaying your BVN. Make sure to note down or memorise the BVN for future reference. Also, please note that the service costs about ₦20. Final thoughts on code to check your BVN Checking your BVN using USSD code is a simple and convenient process. Simply follow the steps provided above.
Read MoreSA startup Omnisient recognised by World Economic Forum as tech pioneer
Omnisient is one of seven African startups to be recognised as a tech pioneer by the World Economic Forum. South African data analytics fintech Omnisient has been recognised as a “tech pioneer” by the World Economic Forum. Launched in 2000, the Technology Pioneer community is composed of early-stage companies from around the world that are involved in the design, development, and deployment of new technologies and innovations and are poised to have a significant impact on business and society. Omnisient has developed a privacy-preserving process for banks to access new sources of consumer data for determining credit worthiness of individuals with no credit history. The startup claims that the process protects consumer privacy and removes the risks and challenges commonly associated with sharing consumer information. “We’re excited to welcome Omnisient to our 2023 cohort of Technology Pioneers,” said Verena Kuhn, Head of Innovator Communities at the World Economic Forum. “Omnisient and its fellow pioneers are at the forefront of innovation and disruption needed to help us solve the world’s most pressing issues. We look forward to their contribution to the Forum’s content work that brings together the public and private sectors to tackle these global issues.” As a Technology Pioneer, Omnisient CEO Jon Jacobson will be invited to engage with the World Economic Forum, working with global leaders to help address key industry and societal issues. Technology Pioneers will also be invited to join Forum events and discussions throughout the year, bringing together leading stakeholders from the public and private sectors. “Our platform has already enabled banks in South Africa to access anonymised shopper behaviour data from a leading retailer and thereby helped millions of people obtain a ‘good risk’ credit rating who would have previously been denied credit due to their lack of credit history,” said Jacobson. “We are excited to share what we’ve learned and achieved in our local market with members of the Forum’s Centre for Financial and Monetary Systems to enable similar financial inclusion breakthroughs in new markets and to find new ways of using data in a responsible and ethical manner to solve some of the world’s most pressing problems.” This year’s technology pioneers comprise startups from 31 markets, with the US and China leading the way with 29 and 12 startups respectively, with African having seven representatives in total. Dove Air, which uses advanced UAM (Urban Air Mobility) technology for aid delivery and maritime conservation, is another South African startup to make the list this year. In November last year, Omnisient raised an undisclosed expansion round from investors including retail chain group Shoprite and Buffet Investments.
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👨🏿🚀TechCabal Daily – Somalia launches standard QR code
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Yesterday, renowned tech billionaire, Bill Gates, paid a visit to Lagos, Nigeria, where he delivered a keynote address at a conference titled “Unleashing the power of youth in science and innovation”. During his speech, Gates shed light on the initiatives undertaken by his foundation, the Bill and Melinda Gates Foundation, and shared insight into their forthcoming endeavours for the country. Of course we attended it. Here are our four takeaways from his speech. In today’s edition Somalia launches QR code Airtel to expand to Kenya Samsung and other phone brands break the law in Kenya Safaricom Ethiopia’s CEO steps down The World Wide Web3 Event: The Moonshot Conference Opportunities Fintech Somalia launches standard QR Code Image source: Central Bank of Somalia The Central Bank of Somalia has launched a Quick Response Code (QR code) standard—the SOMQR—to facilitate cashless payment across the country. Sounds familiar? This comes a month after Kenya launched its own QR Code standard. This is really good news and yet more evidence that Somalia is trying to rebuild its financial services infrastructure, after years of destabilising conflict. ICYMI: After war broke out in 1991, financial institutions in the country collapsed, and depositors lost their money. But since the war came to an end, the country has been trying to fix the situation. It’s the thought that counts. Per Techpoint, the QR code standard may not do much to drive digital payments as there is a significantly low level of internet and smartphone penetration in Somalia. Still, this proves the government’s willingness to spur digital payments in Somalia. Other efforts include the adoption of International Bank Account Numbers (IBAN) and the launch of a national payments system to drive interoperability among its 13 lenders. Moniepoint ranked 2nd fastest-growing African company At Moniepoint, we’re creating the best workplace for global talent using the 4M framework – Meaning, Membership, Mastery and Money. This isn’t an ad designed to convince you to join us, but it has all the reasons why you should. Watch it here. Telecom Airtel set to expand its network in Kenya Image source: Airtel Yesterday, Airtel revealed its intention to expand its network in Kenya. Why? Well, Airtel wants to meet the country’s growing demand for data services. The teleco is actively deploying 349 new sites, expected to be fully operational by year-end, and has an additional 300 sites in the pipeline. What are sites? They are physical locations where network infrastructure, such as cell towers or base stations, are installed to provide coverage and connectivity for mobile services. As part of the expansion efforts, Airtel will be deploying long-term evolution (LTE) technology on a 2600 megahertz band to enhance capacity and improve network performance. Additionally, the company has plans for rolling out 5G technology, which is the next generation of wireless communication, and launching voice over LTE (VOLTE ) services, which will allow for high-quality voice calls over the LTE network. There’s more. Airtel Kenya is also working to lower their carbon emissions by introducing lithium-ion batteries to its infrastructure to make their operations more environmentally friendly. Zoom out: Airtel Kenya reports that their existing network infrastructure encompasses more than 3,200 sites, providing coverage to approximately 89% of the country. The network expansion initiative aims to improve connectivity and enhance the quality of service for customers. Consumer Tech Phone brands ignore Kenya’s ICT Regulator guidelines Image source: YungNollywood Samsung is breaking the law in Kenya. The company is defying the country’s ICT regulator’s guidelines by selling phones without chargers in Kenya. Why is this happening? Across the world, it’s becoming the norm for devices to be sold without wired or wireless headsets, as phone companies claim environmental reasons for excluding chargers and earphones from packages. While reducing packaging waste and e-waste is cited, the primary motivation behind this move is the massive cost savings, allowing smartphone brands save billions of dollars. Kenya isn’t having it and it enforced laws to stop brands from selling phones without chargers. The guidelines: In 2018, Kenya’s ICT regulator, the Communications Authority (CA), dropped some guidelines on features and technical specifications for mobile devices imported and distributed within the country. While the guidelines can’t be located on the regulator’s portal, indicating their removal, a portion of it states, “The AC Adaptor for a mobile cellular device should be equipped with a fitting and suitable power supply cord and mains plug that conforms to the standards established by the regulatory entity responsible for electricity in Kenya.” Apparently, phone brands like Samsung are going against these guidelines in Kenya. A trend: Apple set the trend in 2020 with the iPhone 12 series, selling it without a charger. Subsequently, Samsung and other companies followed suit, offering their phones in Kenya—like the S23 lineup and certain A-series smartphones—without a charger included. What’s next? So far, Kenyan authorities are yet to enforce the law, but the European Union (EU) is beating them to it. Last year, the EU enacted new laws, stating that by the end of 2024, all mobile phones, tablets, and cameras sold in the EU must come equipped with a USB Type-C charging port. Additionally, beginning in spring 2026, this requirement will also apply to laptops. Big Moves Safaricom Ethiopia’s CEO steps down Anwar Soussa Anwar Soussa is exiting his role as CEO of Safaricom Ethiopia. He was the first CEO of the telecom, which launched in the country in 2021. His work so far: Soussa led the acquisition of 4 million customers, and the expansion of Safaricom’s coverage to 50 cities in the country. He also oversaw the launch of digital products and devices in the country such as eKYC, 2G, 4G feature phones, and 4G smartphones. The company also received the Payment Instrument Issuer (PSSP) Licence from the National Bank of Ethiopia under his leadership. With this licence, Safaricom Ethiopia will establish M-Pesa and start providing mobile financial services in the country. More feathers to
Read MoreFour things we learned from Bill Gates’ speech in Lagos
At an event in Lagos, Bill Gates shared what his charity foundation wants to achieve in Nigeria and the potential for AI to be implemented in its work. Bill Gates, the co-founder of Microsoft and the Bill and Melinda Gates Foundation, shared insights today into the foundation’s plans during an event co-hosted by Lagos Business School and the Co-Creation Hub. The event, titled “Advancing Africa: Unleashing the Power of Youth in Science and Innovation,” touched on the foundation’s past achievements and its plans to improve education, health, and agriculture in the country through partnerships with organisations and the support and deployment of technological innovation in the country. In his speech, Gates said that the foundation would continue to build on the work it had done so far “to reduce the big equity gaps” in Nigeria. The foundation has been supporting innovators in Nigeria since as far back as 2009, and going by Gates’ speech, it wants to double down on its progress. Bill Gates on digital finance According to Gates, his foundation has improved digital finance in countries like Kenya, with a focus on women’s empowerment. In Nigeria, Gates said that the foundation would seek to replicate its efforts in those countries. “We have seen new apps that weren’t here a few years ago, and they are scaling up. But so far, we haven’t managed to get those up to the north and women, and so there’s this rural-urban divide in terms of accessing those tools.” To remedy this “divide”, Gates announced that the foundation would invest and partner with Nigerian “entities” to improve the quality of internet connections, the number of digital banking agents, and the digital identification system. “There’s work to do,” he said. One example of the foundation’s intervention in Nigeria is a grant that was awarded to Paga from EFInA, a non−profit organisation funded by the Bill & Melinda Gates Foundation, in 2012. Bill Gates on artificial intelligence Gates noted the potential of AI for the foundation’s work. “ [Soon,] AI is going to be used for things like designing malaria drugs.” He also disclosed that the Gates Foundation had put out a challenge asking innovators to develop AI technology that can reduce inequity. “We reached out and got 1,300 proposals, and half of those came from Africa. In my next visit back to the continent, which will be in October in Senegal, we’ll have a chance to celebrate the winners of that contest.” Bill Gates on healthcare For Gates, Nigeria’s healthcare system reflects the country’s inequity. “It’s in health that we see the most dramatic gaps. If you look across the country, a mother’s chance of surviving childbirth or the chance for a child to grow up healthy varies quite dramatically in some Nigerian states”. He revealed that the foundation had been partnering with Nigerians to solve some aspects of this problem. One solution that the foundation has been working on is the challenge of anaemia in pregnant women. The foundation has been working with Professor Bosede Afolabi, a lecturer at the University of Lagos, to develop a cost-effective solution. “In the past, anaemia was treated by daily vitamins, but that simply doesn’t work in modern or severe anaemia. The approach that she [Afolabi] is piloting is using intravenous administration, where just for one time, for about 15 minutes, sometime in the second trimester, you give this infusion, and what we’re seeing are dramatic results.” He added that the solution could soon be made available to the entire country. Bill Gates on agriculture Gates also touched on how the foundation planned to invest in Nigeria’s agriculture industry. He said that he is also looking forward to supporting more digital innovations, such as technology that supports biofertilizers and better seeds and enables farmers to use cell phones to get weather information out and to give advice to farmers. “Nigeria has great land, and there’s no reason that it shouldn’t be a net exporter instead of a net importer. And we see that problem now with the turmoil in Europe with the Ukraine war that’s driven food prices up to the detriment of Africa, rather than that coming out as an opportunity for greater exports and job creation,” Gates said.
Read MoreSafaricom Ethiopia’s CEO Anwar Soussa leaves the operator
Anwar’s tenure lasted under two years. Safaricom Ethiopia has also not revealed who will take over his position. Safaricom Ethiopia’s CEO, Anwar Soussa, is leaving the company. Anwar joined Safaricom in August 2021, and his exit from the company will take effect at the end of July, ending a 2-year run. In a statement shared by Safaricom, the operator said, “Anwar Soussa, chief executive officer of Safaricom Ethiopia, will be leaving the business effective 31st July 2023 once his secondment comes to an end. Under Anwar’s leadership, the telco also secured a mobile financial services licence, paving the way for the launch of M-PESA services. Our heartfelt gratitude to Anwar for his leadership and contributions to Safaricom Ethiopia. Throughout his tenure, he has demonstrated unwavering passion and commitment, which have played a crucial role in our achievements thus far. We will announce Anwar’s successor in due course.” Safaricom Ethiopia’s parent company, Safaricom (Kenya), launched a bid to enter Ethiopia as early as 2020. Ethiopian authorities accepted the offer in 2021, when Safaricom launched pilot telco programs alongside its partners, Vodacom Group, Sumitomo Corporation, and CDC Group, collectively called Global Partnership for Ethiopia (GPE). The launch cost the consortium $850 million. Over the following months, Safaricom Ethiopia got its house in order by hiring employees, setting up network infrastructure such as data centres, and slowly onboarding customers. The official commercial launch occurred in October 2022. The company has since streamlined customer onboarding with digital biometrics and e-KYC processes at over 5,000 locations. It serves locals with up to five languages. It has also focused on being a youthful brand offering internet services, voice, SMS, and home 4G Wi-Fi. In the 2022/2023 FY results, Safaricom Ethiopia had a customer base of over 4 million, with approximately 2.1 million actively using their services while aiming to reach 10 million customers by 2024. The revenue generated by these customers amounted to KES 562.4 million (over $4 million), with mobile data contributing 63%, voice services accounting for 24%, and the remainder coming from messaging and mobile services. Safaricom has yet to reveal who will take over the role.
Read MoreShuttlers targets drivers with car models from 2007 as it expands its carpooling service
Shuttlers, a shared mobility startup, is expanding its fleet to meet carpooling demand. While it mainly deploys buses, Shuttlers is also intensifying its recruitment of private cars to join its network of vehicles. Nigerian shared-mobility sharing startup, Shuttlers is calling for more vehicle partners, including car owners. According to Shuttlers’ requirements, the cars must be a 2007 model or later, while the Hiaces and coaster buses must have air conditioning. Shuttlers operates a ride-sharing service powered by an app that lets users book seats on vehicles headed in their direction. The new cars Shuttlers is looking to add to its fleet will be assigned to new and existing routes. Using the app, customers can find and join these scheduled shuttles. Carpooling, the concept of sharing your car with other passengers on the same route as you, isn’t new. In Lagos, it’s common to see private drivers en route to work picking up passengers heading in the same direction. On some routes, gig drivers with Uber and Bolt sometimes pick up passengers, mimicking the practices of traditional public transport services. For car owners, carpooling is a way to recoup some of their fuel costs. While offline carpooling doesn’t need an app, it’s limited and may need you to wait longer than expected to find a driver with the same route as you. Shuttlers has found popularity with the Lagos working crowd who often live far away from their offices. Some employers arrange for Shuttler bus to transport their workers to and from the office exclusively. For workers whose offices don’t offer staff buses, Shuttlers is an unofficial staff bus, allowing them to pick their routes, and preferred seats, and commute in comfort. In a city that’s often chaotic, that comfort makes all the difference. Yet, some people will argue that while it’s relatively easy to get people to share a staff bus, carpooling is a more difficult proposition. Digitising carpooling has proven to be difficult by the limited success of companies like Hytch, Ridebliss, and GoMyWay which have at different times attempted it. But Shuttlers’s popularity with the office-going crowd may prove to be the secret sauce. The company’s founder Damilola Olokesusi told TechCabal that the company is redesigning its app’s interface to increase the visibility of its more diverse car options, affirming her confidence in this move. Yinka Aghedo, head of marketing at Shuttlers, also emphasized that the company and its customers are not unfamiliar with carpooling. “Although our flagship assets are buses, we have always complemented our existing fleet with cars and minivans,” he said. A look at the app shows that the app offers options to ride in a 6-seater sedan to some destinations. But TechCabal could not confirm if four-seater cars are currently on the app. Still, Yinka explained that “[We do use cars], and they are primarily required to be new vehicles [2007 models or newer] because we have observed that older cars tend to be less durable and more prone to breakdowns.” If this car model requirement rings familiar, it is because one of the ride-hailing giants, Uber, also had a similar condition when it entered the Nigerian market. Increased competition and the need to onboard more drivers eventually forced the company to relax those rules. Recent blog posts from Bolt show that the rules have been relaxed to include cars from 1998 models and sedans from 2002 models or newer. Uber’s website says that vehicles from the 2000 model year are acceptable. The initial requirements were likely established for safety reasons, similar to Shuttlers’ approach. However, they may have been adjusted to expand the pool of available drivers, as older cars are more affordable and commonly used by the targeted drivers of these ride-hailing companies. Regardless, Shuttlers remain confident in the superiority of its offering. Considering the state of Nigeria’s economy, there is no question of whether vehicle owners will be willing to partner with Shuttlers, mainly since it guarantees a predictable income. Shuttlers’s business model “People like to compare us to Uber and Bolt, but we operate very different business models,” Damilola told TechCabal during a call. She explained that, unlike Uber and Bolt, Shuttlers guarantees customers for its drivers as well as a predictable pay and route, unlike Uber and Bolt, where the drivers have to find customers by themselves and are left to guess how much they earn from a trip. “The amount a driver can earn on a trip is determined by the car they are providing and is agreed upon during their onboarding to Shuttlers.” The app shows that a customer’s price to be driven to a particular stop varies with the kind of vehicle. Cars cost more than coasters do because cars have limited seats, and customers have to sit through fewer stops.” The drivers are assigned to a route, and Shuttlers ensures that the seats are filled with customers.” Damilola told TechCabal.
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How to download WhatsApp Beta in 2023
WhatsApp Beta offers users the opportunity to test out new Whatsapp features and enhancements before they are released to the general public. If you’re eager to get your hands on the latest developments and contribute to improving the WhatsApp application, this article will guide you through the process of obtaining WhatsApp Beta. 1. Join the Beta Program To become a WhatsApp tester, you need to join the WhatsApp Beta program. Here’s how you can do it: a. Open Google.com on your Chrome device. b. Search for “WhatsApp Beta” in the search bar and open the first “Play sStore” option you get. c. Scroll down until you find the “Become a Beta Tester” section. d. Tap on the “I’m In” button to enrol yourself in the beta testing program. e. Wait for a few minutes for the Play Store to update, and you will receive the beta version. 2. Downloading Beta After enrolling in the beta program, follow these steps to download Beta: a. Open the Google Play Store. b. Search for “WhatsApp” and open the WhatsApp Messenger app page. c. If an update is available, you will see an “Update” button. Tap on it to download and install the beta version. d. If no update is available, you may have to wait for a short period until it becomes available. 3. Updating WhatsApp Beta Once you have successfully installed Beta, you can easily update it to the latest versions using the Google Play Store: a. Open the Google Play Store. b. Search for “WhatsApp” and open the WhatsApp Messenger app page. c. If an update is available, you will see an “Update” button. Tap on it to download and install the latest beta version of the instant messaging app. d. If no update is available, it means there are no new Beta versions released at that moment. You can check periodically for updates and install them once they become available. Final thoughts WhatsApp Beta Joining the WhatsApp Beta program allows you to access upcoming features and contribute to the improvement of WhatsApp. For example, the latest WhatsApp chat edit feature was long implemented on the Beta version before the general WhatsApp got it. So, by following the steps mentioned above, you can easily become a beta tester and stay ahead with the latest advancements in one of the world’s most popular messaging apps. Enjoy exploring the cutting-edge features and providing valuable feedback to the WhatsApp team.
Read MoreE-commerce 2.0 and the African landscape
This guest article was contributed to TechCabal by Osinachi Ukomadu. Lydia is a Ghanaian entrepreneur with an unwavering determination to create an African e-commerce empire. Despite encountering challenges like the unstable economy and limited infrastructure, she persevered. To build a successful e-commerce business, she knew she had to overcome hurdles such as securing reliable payment gateways, dealing with erratic internet connectivity, and consumer scepticism towards online shopping. So she spent a lot of time researching different solutions, trying them out to find the best fit for her business. Lydia collaborated with local banks and developers to create custom payment solutions for her website. She invested in modern technology to provide fast and quality service. Additionally, she established an efficient delivery network that could handle deliveries throughout the country. Despite her relentless efforts, her business struggled for years. Convincing people to buy online in a market where online shopping was not popular took a lot of work. But she kept pushing through, tinkering with her website, running promotions, and testing different marketing strategies to encourage people to try online shopping. Gradually, her perseverance started to pay off. Customers started appreciating the hassle-free and reliable service provided by Lydia’s website. People began to trust the entrepreneur and her business. Eventually, she expanded into new markets, attracting customers from all over Africa. It is undisputed that the African e-commerce landscape is progressing with the current surge of innovations and technologies. Currently, it is riding on the wave of e-commerce 2.0 and shows the tendency to adopt e-commerce 3.0 soon. However, in case you are wondering what the stages are about, here is an explanation for you: ● E-commerce 1.0: The e-commerce landscape is taking off with simply the basic functions of buying and selling online. ● E-commerce 2.0: Ushers in a more holistic experience, such as improved customer experiences and customization. Another aspect of e-commerce 2.0 is the B2B e-commerce system, where brands offer more innovative solutions and deal with a single business that would further distribute to others rather than dealing with multiple businesses. For instance, Market Force and Alerzo practise a form of B2B e-commerce. ● E-commerce 3.0: This era will focus more on integrating all the different aspects of e-commerce that a typical business owner would grapple with. It would provide more flexibility for the players and the customers. It would also combine both online, offline, and mobile experiences. With e-commerce 2.0, it is easy for regular mom-and-pop shops to access whatever product they want to sell in their communities, which drives a lot of offline African commerce. As earlier mentioned, e-commerce 2.0, which is more of the B2B e-commerce, is currently obtainable in Africa with the likes of Alerzo and Market Force. They are gaining ground because they tapped into the latent demand already in the market with the mom-and-pop shops. Additionally, large and fast-moving goods manufacturers like Cadbury, Nestle, and Coke have figured out how to disintermediate distribution mechanisms and acquire many mom-and-pop shops to help them distribute. Instead of going directly to the manufacturers to get products, e-commerce businesses operating within e-commerce 2.0 can act as distributors using technology to disintermediate that entire process and make it seamless. Furthermore, there’s e-commerce 3.0, where we’re gradually moving online. Some mom-and-pop shops will move online, with different players facilitating this transition through digitisation. These players will provide platforms for e-commerce businesses to sell peer-to-peer, sell on marketplaces, and even social platforms. For instance, Bumpa, Anka and other similar players are currently doing this. Some existing e-commerce businesses will adopt this new model even as we move towards this era. In addition, while we gradually move to e-commerce 3.0, B2B commerce will still be there for the hinterlands. But, likewise, there will be some businesses that will never go online, and that’s okay. It is usual for the kind of commerce system we have in Africa, and it serves the people as long as they get what they want. At the end of the day, it’s about goods moving from the manufacturing plants to the hands of the customers through whichever method is efficient and works for the customers at the right price points, at the right location, and at the right time. The rate of digital adoption I foresee a group of mom-and-pop shops getting digitised through players helping them with accounting and basic bookkeeping. The big challenge with many of these shops is that they give credit to people within the community, and it becomes challenging over a long period to keep track of that credit. I remember such happening when growing up. My grandma used to have a little shop in the village, and she would do exactly that. She would provide people with credit, but there would be different stories when it was time to pay back the money. We all have those experiences. A lot of that exists today, where nobody is keeping their books, or even if they’re keeping books, they’re incomplete or inaccurate. And so, some players are coming in to help digitise these books, making it easier for mom-and-pop shops to give credit to those within the community and collect that money when they ought to. This group of mom-and-pop shops may not necessarily sell online, but they are getting digitised. So, now their transactions are coming online, they can access credit, and they can perform several bank transactions that they couldn’t do in the past. Likewise, some of them would go all the way to selling online. That is how I see the process panning out, and it won’t be a complete transition, either. Some will be hybrid, while others will be entirely digitised. However, there will be enough players to support the two different spaces completely. As we look forward to Africa adopting e-commerce 3.0, we must remember that there are still many ways we can significantly harness e-commerce 2.0.
Read MoreBuilding from ground up in Kampala: An interview with Jonathan Ntege Lubwama
This interview was conducted and contributed to TechCabal by Luke Sheehan, chief editor and copywriter at CrossFund, an investor collective focused on emerging markets. Jonathan Ntege Lubwama is a young Ugandan with a challenging mission to build Ugandan startups to maturity. During a nine-month gap before starting university, and just a few years before the COVID crisis, he started reading about tech startups. Around the time he commenced his own studies, he founded a food delivery company for students. As with many first tries, it crashed after initial success, but he was not deterred. He moved on to his next idea: online real estate. That play received a grant but was impacted by the COVID lockdowns. He moved on from that, too, joining Kampala’s Digest Africa as a writer and editor. The journalism skills he developed in media would teach him how to carry out due diligence with founding teams. Lubwama’s focus now is building Benue Capital, which launched on March 31 this year. Benue is the first native venture capital (VC) firm in Uganda. What’s exciting in Uganda as you launch Benue Capital? Everyone understands tech in Africa as Kenya, Nigeria, South Africa, Egypt, with a second tier perhaps containing Ghana, Tunisia, and Senegal—Uganda might be in the third tier. Many people are building, and that is what is exciting here. The difficulty is that the quality of what they are building may not always be the best. That keeps the typical VC money out. What do you do at Benue that’s different? With Benue, we are not building like a typical VC. We invest like a venture studio; we do venture building with startups, and that’s a process that can take two to three years. We write smaller cheques to the companies, some of them pre-revenue, streamlining and helping them along the way, checking the metrics as we go, and checking the market. We help them make key hires, help with the legal side and the finances. We operate almost like a co-founder. After this process, the founders are in a better condition to go in front of the bigger VCs operating in the region to receive follow-on funding. What do startups most need mentorship with? Marketing, financing, coding? Am I allowed to say, “everything”? Some companies have great ideas but need help with everything. Others have a great product but can’t find users. Some have become well-known in the market but their product could be better. It sounds like, in some cases, you are truly going on the full journey with them. There have been some startups where the idea was there, but once we realised how big the problem set they were solving was, it was like starting from scratch. In those cases, we do take quite a lot of equity. Some of them are further along the journey already. Ugandan companies like Tugende and Asaak seem to focus on building financial opportunities and connectivity for entrepreneurs and have had success in fundraising in recent years. We already hear a great deal about the untapped potential of African SMEs. Food delivery is a trend that you yourself have tried. Can you highlight another trend? Solving the problem of credit is certainly a big one. A related one I would mention is the motorcycle taxi industry, the boda-boda taxis. I heard that, before, it makes up maybe 3–6% of Kampala’s GDP, which is a huge amount. A lot of people cannot afford to set up a company on their own in this area, but Tugende and Asaak help with that. Another name of significance is YC-backed fintech Numida (YC W22), which raised $12.3 million last year and perhaps $15 million in its lifetime. It offers loans to SMEs—obviously these companies are growing because credit is a problem. Solar energy is also receiving VC backing. Something to note is that a lot of companies receiving backing are led by expatriates, a situation one also sees even in Kenya; this highlights to me how absent local capital is. One sees companies raising tens of millions of dollars. They are not getting it from Uganda. They fly to New York, to Europe to raise it, even Japan. Those with the social capital or network to make it work are the ones getting ahead. Is there a specific problem you’d like to see solved? Proptech is interesting and underfunded. In the background, Uganda has a very big housing deficit. People often are forced to remain living with their parents [for longer than desirable]. If proptech can help move this along, then it’s a huge opportunity. I started one before (Twekobe) which linked property seekers to developers/agents/brokers. With no official qualification for real estate agents in Uganda, we built one internally, and a system to speed up house-hunting with an app. Since after we tried to solve these problems, we have not seen people take them on; people are building fintech and e-commerce companies, not proptech. It seems to be a problem in many parts of Africa, this difficulty in finding a home? It is the same in Nigeria, in Kenya. It’s everywhere. I’m surprised more people aren’t giving it attention. What will be the biggest challenge as you move forward with Benue Capital? I think simply showing people what venture capital is. Most people have a “grant-funding mentality” that comes from our existing system. The “tough love” mentality from the VC side, the “move fast” mentality is a new one for them. For some founders, I get this across by saying, “When you raise with us, you are competing with Kenyan startups, Nigerian startups.” As the investor I need to make the best returns, and this is not a grant. As we face an economic downturn, it’s even more important. Some founders have never mastered a term sheet, have barely a revenue of $2K but want to raise $500K. As you look around East Africa, what qualities are you looking for in founders? We want to know if they understand the problem
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Failure to launch: South Africa’s challenge in transforming technical talent into investable founders
South Africa produces the most software developers annually among the “big 4” tech hubs on the continent. Despite the technical talent, South Africa is dwarfed by countries like Nigeria and Kenya in producing scalable and investable startups. This article explores the disconnect in funnelling technical talent into entrepreneurship talent and how to address it. According to research [pdf] conducted by Google and the International Financing Corporation (IFC), South Africa produced 118,541 software developers, per 2020 figures. It was followed by Egypt, Nigeria, and Kenya with 86,599, 83,609, and 58,175 developers respectively. South Africa produces the most software developers on the continent. (Image source: TechCabal Insights) However, despite producing the most number of software developers, South Africa lags behind in churning out investable and scalable startups. According to data by Statista, Nigeria has the most number of startups on the continent, with 3,360 entities, followed by Kenya with 1,000 and South Africa with 660. When it comes to attracting venture capital [pdf], South Africa also lags behind, attracting $550 million in funding in 2022 through 78 startups. This figure is dwarfed by Nigeria’s $976 million from 180 funded startups, Egypt’s $812 million from 131 startups and Kenya’s $574 million from 90 startups. When it comes to producing fundable and scalable startups, South Africa lags behind countries like Nigeria, Egypt and Kenya (Image source: Disrupt Africa) So, why is South Africa’s tech talent and alumni not going on to found fundable and scalable startups? In theory, it would make sense for the number of tech talent to directly correlate with the number of investable startups in a market, a trend which holds in other markets like the US and Europe. Raphael Segal, a startup founder and industry veteran with over 30 years of experience in the industry, believes that South Africa’s talent pipeline problems stem from fundamental issues. This includes a lack of access to seed funding, which sees promising startups dying off before they achieve any sort of traction. “We have some fundamental challenges. This includes lack of seed capital to bet on these developers coming out of varsity to take their ideas to market. Even for those who are lucky enough to get funding, you see that even though they have the technical talent to build products, they lack the entrepreneurship skills to make a business case for those innovations. What then happens is that these startups run out of runway before really establishing their presence,” he told TechCabal. According to the Google and IFC report, the quality of technical talent coming out of South African universities is immense. For example, before going under in March, the Naspers Foundry’s R1.4 billion fund, the biggest in South Africa at that time, backed startups whose founders went to majority South African universities including UNISA, Stellenbosch, University of Pretoria, and largely, University of Cape Town (UCT) to the total tune of over R700 million. Beneficiaries of the now defunct Naspers Foundry were alumni of SA universities including Stellenbosch University, University of Pretoria and University of Cape Town. (Image source: preamble.africa) Another startup, which can trace back its origins to UCT, is Lipa Payments, a fintech startup whose product offering enables contactless payments via smartphones. Last year, the company raised a $600,000 seed round. According to co-founder Thando Hlongwane, who started the company whilst still pursuing his studies, what the university got right was its ability to support aspiring entrepreneurs by providing access to startup ideation initiatives, incubation facilities, and connecting students with the broader Cape Town startup ecosystem. “UCT definitely had an enabling environment [for building tech products]. The information systems department had an innovation lab which I was a part of. We had access to 3D printers, virtual reality machines, and a whole lot of other tech which allowed us to not only ideate but also create,” Hlongwane told TechCabal. “The alumni ecosystem of the school was also quite supportive and through it, I met Jason Basel, founder of Akro, who today remains a mentor of mine and helped one of my other startups, Zaio, raise its first round of funding.” Hlongwane further added that apart from the amenities offered by the university’s innovation lab, there were also ideation initiatives such as UCT Flux which allowed students to build new startups using a design thinking methodology. “The likes of Akro, who we connected with via the university, gave us free access to their co-working spaces which proved to be a huge help in our early days,” added Hlongwane. How to improve the “varsity project to successful startup” conversion rate in SA Like Hlongwane, Ndabenhle Ntshangase also started his startup, AirStudent Travel—a group booking platform where students can make travel bookings together and access group rates in the process—whilst still pursuing his degree in Economics at UCT. “I’m from Kwazulu Natal, in a small town called Fred, but I studied at UCT. At the end of each term, I had to travel between home and university and the trips got quite pricey. But I found out that there are also thousands of other students that did the same thing at the end of each term, so I came up with the idea for Airstudent Travel to address that pain point,” Ntshangase told TechCabal. On what could be done by South African universities and other tertiary institutions to foster the creation of sustainable and scalable startups by students, Ntshangase believes that beyond just amenities like co-working spaces and labs, there should be much emphasis on business development beyond just theory learning in classes. “It would be great for institutions to show support for the products created by these innovators. This would help with early momentum and traction which helps a lot when trying to raise funding. If the institution believes your product is good and they put you on the school newspapers, etc, they should translate that support into actual business transactions,” he added. Hlongwane further reiterates the need for schools to foster entrepreneurial lessons beyond just the classroom. “What my course gave
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