- August 31 2023
Airtel Malawi made 113% profit in H1 2023, despite currency devaluation
Airtel Malawi has delivered a strong performance in its first half report of the year, growing 113%. Airtel Malawi has reported a profit of K18.9 billion ($17.67m) for June 2023, an increase by 133% from the K8.9 billion ($8.28m) it reported a year ago. In an environment where its contemporaries reported losses owing to currency devaluation, Airtel Malawi is an outlier. Airtel’s Malawi’s uptick in its financial statement does not represent the current state of the external shocks and severe macro-fiscal imbalances the country suffered in the last three years. In June 2023, a spokesperson for Malawi’s central bank said the foreign exchange reserves of the East African nation could not cover a month of imports. But respite came when the Reserve Bank of Malawi, in a foreign exchange auction, raised $350,000 that same month to cater to forex shortage. Airtel Malawi’s resilience is thus unprecedented as its profit is attributed to a better operating performance and lower finance costs. The telco reduced its foreign exchange losses to K2.8 billion ($2.66m) in June 2023 from K12.6 billion ($11.77 million) the year before. “The Malawi Kwacha depreciated by 2.68% in June 2023 as against a foreign exchange loss of K12,652 million in the previous year, same period, when the Malawi kwacha depreciated by more than 25%,” the notes in the financial statements read. The firm’s revenue was up 26.8% to K85.9 billion ($80m) from K67.8 billion ($63.11m) recorded in June 2022. The revenue growth was based on the customer base growth of 5.8%, and average revenue per user (ARPU) growth of 20.7%. The revenue growth was broad-based across all key segments: voice revenue went up by 16.9%; data revenue was up by 30.4%; and other revenue was up by 86.7%. Airtel Malawi is going nowhere despite the nation’s economic woes Airtel Malawi said it will continue to support the economy and keep Malawian communities connected. Its outlook on Malawi is attractive, as it notes that the telecommunication sector would benefit from population growth and the need for increased connectivity. While it wants to base its forward-looking strategy on increasing mobile penetration via rural underserved markets, the economy is a worrying concern. “The economy and company are exposed to [the] continued impact of Kwacha depreciation and scarcity of foreign currency,” the notes in its statements read. The telco said it will sort the problem by diversifying currency sourcing while doubling down on revenue and customer growth. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- August 31 2023
The role of storytelling in building a more formidable tech ecosystem
Rose Odengo describes herself as big-hearted, loving, and as someone who enjoys laughing. She pours her heart into everything that she does, including storytelling, which she has been doing for close to two decades. For the past 16 years, Odengo has worked in communications and storytelling, doing everything from copywriting to journalism, and even fiction. All these three paths combined make up what she calls her “storytelling triage”, which she uses to tell the next generation of African brand stories. Odengo is the head of communication and community at Madica, an Africa-focused pre-seed investment programme empowering underrepresented and underfunded founders in Africa. Prior to her role at Madica, she worked mainly in the non-profit sector, helping organisations like the Obama Foundation and Segal Family Foundation attain communication and marketing goals. For Centre Stage, I had a conversation with Odengo which was lighthearted, candid, and punctuated with a lot of laughter. We discussed multiple facets of storytelling including its role in building a more formidable tech ecosystem and how startups can tell better stories. Storytelling is a tradition RO: Storytelling for me started when I was a child at the dinner table. Every night at dinner, my parents would tell me and my siblings stories about their childhood and what it was like growing up for them. It was a tradition in my family and fundamental to how I was raised. I learned a lot of our traditions and core life lessons via storytelling, and I grew up to love it. I started working in Kenyan media houses as soon as I could, based on my love for telling stories, first, as a copywriter, after which I evolved into journalism because I felt like helping people sell things was not enough, but I wanted to transform society. From journalism to public relations, and it’s been a steady progression from there. Perfection doesn’t exist for storytellers RO: Perfection doesn’t exist for storytellers and it’s whatever we constitute it to be in our minds. To be a great storyteller, you need to understand the basics of storytelling. It goes beyond the conventional ways we’ve been taught to approach stories; having a protagonist, a plot, a dilemma etc. When we look at storytelling as a way of documenting the truths of our society and sharing it on a global stage, then it’s just a matter of practice rather than perfection.Writing a good story is about considering what your audience knows or doesn’t know, what you want them to know, how they will understand and interpret it and being able to piece all of these together in a way they can understand. Good stories tend to be universal and it doesn’t matter what part of the globe people are in; they should be able to connect to your story. How personality affects storytelling RO: I’m a Chatty Patty, but I also consider myself to be an ambivert because there are times when I like to recharge in solitude. As a storyteller, one thing that I learned over the years is the importance of listening. I haven’t always been a great listener and would always like to have the last word in conversations, but that has changed as I’ve grown as a person and as a storyteller. I’m now an ambivert, and so I have moments where I share and talk, but also moments where I listen. Listening provides a core aspect that a lot of communication sometimes fails to do, which is context, and in order for people to be comfortable enough with opening up to you, they need to get the sense that you are willing to listen to them without judgement. The heart of listening is listening without judgement, and paying attention to your subject rather than your preconceived biases. However, you also need some bits of extroversion because that has helped me make conversations and friends easily. This is also useful because sometimes you share stories that people can connect to and lead to the forming of bonds that are hard to break. The role of storytelling in the African tech ecosystem RO: People are tribal in nature, and this means that they’re going to connect with you and want the best for you when they understand you. The role of storytelling in the ecosystem is to try to build that connection in different ways. The first way is simply eliminating the gatekeepers and making stories or sharing of information completely accessible. We see that a lot of startups are genuinely confused as to what VCs want in order to give them money. They keep thinking “What do they care about?” “What kind of questions should I be asking?” One key thing in my role at Madica is to build a one-stop information hub where startups can access all the information they need. This also helps founders understand the psychology and understanding of how these things operate, including how to engage and talk to investors. The second aspect is that storytelling can be a tool to engage with other players in the ecosystem. At Madica, we’re telling our stories and sharing the stories of our portfolio in the startups, and this is to get the attention of other VCs who may be interested in investing or have negative assumptions about investing in startups in Africa. We play a role in de-risking through our community building to help people see that there is more than just Nairobi, Cape Town, Cairo and Lagos. Startups need to understand the lingua franca in order to tell stories better RO: Across the board, a fundamental challenge of startups is always money and funding. Fundraising seems to be a struggle and it tends to be an aspect of two related things: how startups tell their stories and understanding the lingua franca of investors. Different investors are interested in different things. While some are more interested in debt financing, others are more interested in equity, or later equity. These different investors speak different languages and your success in
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- August 31 2023
Amid high fuel costs, Uber launches electric motorbikes in Kenya
Uber has launched an electric motorcycle in Kenya but is only available in Nairobi for now. Uber has revealed an e-mobility product in the Kenyan market—an electric motorbike named One Electric. The launch is key as the worldwide automotive industry plans to transition toward electric vehicles, with countries such as the U.K. planning to phase out vehicles with internal combustion engines. This also marks Uber’s third key product announcement in the Kenyan market this year, following the rollout of an audio recording feature for safety and the integration of M-PESA into its payment system. “Now is the time to take solid steps that enhance sustainable practices and as a business, we are committed to being part of the collective efforts to reduce the carbon footprint. Through the launch of Electric Boda on our platform, we are proud to provide an option for emissions-free mobility in Kenya. This launch also supports our global efforts to become a zero-emissions platform by 2040,” said Frans Hiemstra, director and regional general manager, Uber, Middle East and Africa. The electric motorbikes, with an 80-kilometre range, are not owned by Uber; instead, they are under the management of Greenwheels Africa, an e-mobility company focused on electrifying motorbikes. This fleet partner will oversee all bike-related logistical matters, including maintenance and charging. Imran Manji, Uber’s head of East Africa, told TechCabal that Greenwheels currently operates only a few charging stations in Kenya, but they plan to increase them to ten before the end of the year. However, motorcyclists won’t be responsible for charging their bikes; rather, they will exchange depleted batteries for fresh ones at Greenwheels Africa’s stations. Manji clarified that Uber electric Boda cyclists will also be charged for the batteries based on their usage. “If a rider wants to swap a battery that is at 40%, they will only pay for 60% of charge at the station,” Imran told TechCabal. Riders won’t own the electric bikes although there are plans to sell the bikes to other Kenyans in the future. Greenwheels will lease them for Uber services through a collaborative partnership involving the e-mobility company, Uber, and the riders. The bikes will also complement the current Uber Boda service that uses fuel-powered motorbikes, now with a potential 20% price reduction. “We are doing our part to aid the transition to eco-friendly mobility products and to support national sustainability objectives. The launch of Electric Boda will provide Kenyans with one of the most affordable ways to move from one place to another, with prices 15-20% below the price of our existing product,” said Imran Manji. For now, the bikes will be accessible in specific areas of Nairobi and are set to extend to other Kenyan cities later. Uber has not revealed plans to launch this service in other African markets. Kenya seeks to tackle pollution following the launch of the National Electric Mobility Plan, aligned with the National Energy Efficiency and Conservation Strategy (2020-2025). This approach bypasses the need for parliamentary approval on tax exemptions for electric car imports by 2024. The plan’s core objectives involve implementing an automotive industry charter, providing eco-friendly driver education, and establishing sustainable road traffic management. High fuel costs in Kenya have led to increased expenses for locals, businesses, and transportation, impacting economic activities and living costs. Nonetheless, the government reinstated a fuel subsidy to stabilise pump prices. This led to the cost of petrol, diesel, and kerosene remaining steady at KES 194 ($1.34), KES 179 ($1.23), and KES 169 ($1.16), respectively, in Nairobi. According to Uber, the launch of electric motorbikes marks a potential 30-35% drop in operational expenses. The Bodaboda industry, which employs over 1.5 million youth in Kenya, contributes around KES 202 billion ($1.4 billion) to the economy each year, as per the World Bank. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- August 31 2023
Ugandan fintech Asaak acquires FlexClub as it expands to Mexico
Asaak joins Nigeria’s Paga as one of the few African tech companies to expand to Latin America. Founded in 2016, Asaak offered motorcycle and smartphone loans to Ugandans individually and through partners like SafeBoda. It has now acquired FlexClub on “friendly terms” as it pursues a growth strategy outside Uganda (and Africa). After becoming profitable on the back of its program that purchased motorcycles for boda boda drivers in Uganda, Asaak began to consider options for expansion Kaivan Sattar, CEO and founder of Asaak explains to TechCabal. While the Asaak team explored opportunities in Africa, their attention was caught by FlexClub, a Mexican startup offering car financing for Uber drivers and providing software that allowed South African car rental companies to offer vehicle “subscriptions” to drivers. FlexClub straddled two continents and offered different products, which was an operational strain. Asaak was looking for its next big asset financing market. At the same time, some of its partners in Uganda had pulled out of countries bigger than Uganda. So, it made sense to be open to anything. The Asaak team decided the right opportunity was to buy the asset financing business of FlexClub, which wanted to focus on its South African market. Both firms also shared mutual investors, which made the acquisition natural and one that investors welcomed. “As active investors in both Asaak and FlexClub, simple.Capital() spotted an opportunity to procure the acquisition of FlexClub’s Mexican business by Asaak. We congratulate both management teams on the closing of this transaction which we believe has significant benefits for both Asaak and FlexClub,” said Blake Musgrove, Partner and Chief Investment Officer at simple.Capital. Tinashe Ruzane, CEO and co-founder of FlexClub said the startup left its Mexican business to focus on South Africa because of the ”need for sharper focus in this very challenging economic environment, not [as] a reflection of the potential.” Going to Mexico Only 37% of adults in Mexico have accounts, and just 32% have made or received digital payments, according to the World Bank. It remains a primarily cash-based economy. One downside of this is that as businesses and individuals transact mostly in cash, they may not have a formal financial trail to qualify for credit. “Historically, there has been a lack of desire from the banks to go after clients that are perceived to be higher-risk, combined with the lack of the tools to properly service them,” David Poritz, co-CEO of Covalto, a Mexican digital banking and services platform told The Banker earlier this month. Where loans are offered, the collateral or interest charged is too expensive. Unsecured loans can cost up to 300% in annual interest. Mexico is also home to a thriving industry, thanks to the millions of tourists visiting hotspots nationwide yearly. Despite occasional altercations with regular taxi driver unions, the country is one of Uber’s biggest and most profitable markets. Kaivan has lived and travelled across East Africa for some years prior to Asaak. He spoke fondly of the cultural nuances that were embedded in how they sold Asaak as they grew the business to become profitable. Like getting spouses to participate in the loan product and co-sign the lease papers. And creating a children’s room for the anxious families who trooped to Asaak offices to pick up the family’s first motorcycle and future source of income every day. It’s largely the same in Mexico, “the men come with their wives or girlfriends, or the women come with their boyfriends to pick up their cars and they drive off with it,” Sattar says. Where it once financed boda bodas, Asaak will now be providing car loans, so replicating their Ugandan success in an entirely different setting with a different set of products will mean understanding more of these cultural cues and undertones for this new set of customers. “The vehicle is the entry point into our credit ecosystem, from which drivers can eventually access additional credit for fuel, repairs, smartphones or other needs they may have. We’ve proven this can be done profitably at scale for our clients, both online and in person,” Sattar said in a press statement. “We love asset financing/ Other people may not like it, but we love it,” Sattar declares. Having built a strong business serving informal customers in Uganda. He is counting on using that experience to make his vision of digitising Mexico’s lease-to-own vehicle market, profitable. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- August 31 2023
2024/2025 ways to track UNISA application status
The University of South Africa (UNISA) is a renowned institution that attracts students from all over the country and beyond. If you have applied to UNISA and are eagerly awaiting a response, tracking your application status is crucial. Fortunately, UNISA provides a straightforward process to keep applicants informed about the progress of their applications. Here are the steps to track your UNISA application status in South Africa: 1. Access the UNISA Website to track application status Begin by opening your web browser and navigating to the official UNISA website (www.unisa.ac.za). This is the official source of information regarding your application status. 2. Click on “Check Your Application Status”: On the UNISA homepage, look for the “Check Your Application Status” link. This is usually prominently displayed to help applicants easily locate it. If you don’t find it, then there’s possibly no application pending or they’ve not started allowing checks for the last application. 3. Enter your details Once you’ve clicked on the link, you’ll be prompted to enter specific details to verify your identity. These details usually include your ID number, surname, and date of birth. Ensure that the information you provide is accurate. 4. Submit the information After entering your details, click on the “Submit” or “Check Status” button. The system will use the provided information to retrieve your application status. 5. View your application status Once the system processes your information, your application status will be displayed on the screen. UNISA usually provides detailed information about whether your application is still under review, has been accepted, or has been declined. 6. Check regularly to track your UNISA application status UNISA’s application review process may take some time, so it’s essential to be patient. However, you can check your application status regularly to stay updated on any changes. 7. Contact UNISA (if necessary) If you find that your application status remains unchanged for an extended period, or if you encounter any issues while checking your status online, it’s recommended to contact UNISA’s admissions department. They can provide you with more information and assistance. 8. Constantly check your email UNISA may also communicate updates about your application status via email. Keep an eye on your registered email address for any messages from UNISA regarding your application. 9. Keep track of deadlines While waiting for your application status, ensure that you keep track of any deadlines for document submissions, registration, or other related processes. UNISA’s communications might include important instructions that you need to follow promptly. Final thoughts on how to track UNISA application status Tracking your UNISA application status in South Africa is a relatively straightforward process. By following these steps, you can stay informed about the progress of your application and take any necessary actions as required. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- August 31 2023
Latest Home Affairs online booking steps 2023
In the digital age, convenience is paramount, even when it comes to government services. And the South African online booking system for Home Affairs appointments affords you such comfort. This system streamlines the process of obtaining essential documents and services, such as identity documents, passports, and marriage certificates. To help you navigate through the process, here’s a step-by-step guide to securing your Home Affairs online booking. Step 1: Visit the official Home Affairs online booking website Open your web browser and visit the official South African Home Affairs website. Ensure you’re on the legitimate website by checking the URL for authenticity. The URL is http://www.dha.gov.za/. Step 2: Create an account If you’re a first-time user, you’ll need to create an account on the website. Provide your email address, create a strong password, and input your personal details as required. Step 3: Log in to proceed with Home Affairs online booking After creating an account, log in using your newly established credentials. Step 4: Select preferred Home Affairs booking service Navigate to the online booking section and choose the specific service you require. This could range from applying for a new Smart ID card to scheduling a passport renewal. Step 5: Choose a branch Select the Home Affairs branch that is most convenient for you. Keep in mind the proximity to your location when making this decision. Step 6: Pick a date and time Depending on availability, choose a suitable date and time slot for your appointment. The system will display the available slots, allowing you to pick one that aligns with your schedule. Step 7: Confirm your Home Affairs booking/appointment details Review your chosen date, time, and service type. Verify that all the information is accurate before proceeding. Step 8: Provide personal details Fill in the required personal details for the service you’re booking. This might include information such as your identification number, full name, and contact information. Step 9: Additional information Some services may require you to provide additional information or documents. Make sure you have all the necessary paperwork ready to upload if required. Step 10: Payment Certain Home Affairs online bookings or services may have associated fees. You’ll need to make the payment online using the available payment options. Step 11: Confirmation Once you’ve completed all the necessary steps, you’ll receive a confirmation of your appointment via email. This confirmation will contain important details, such as your reference number. Step 12: Attend the appointment On the scheduled date and time, arrive at the selected Home Affairs branch with all the required documents. Present your reference number to the officials to ensure a smooth process. Final thoughts on the Home Affairs online booking By following these steps, you can make the most of South Africa’s Home Affairs online booking system, saving you time and hassle. Remember that while the online system offers convenience, it’s important to ensure your personal information is kept secure throughout the process. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- August 31 2023
Smart ID online application South Africa 2023
In an era characterized by digital advancement and streamlined processes, it’s little wonder why the South African government devised the Smart ID online application system some years ago. This innovative approach allows citizens to apply for their Smart ID cards conveniently from the comfort of their homes. By following a few simple steps, individuals can initiate the application process, reducing the need for in-person visits to government offices. In this article, we’ll outline the steps to go about the Smart ID online application in South Africa. Step 1: Register on the Department of Home Affairs website To begin the Smart ID application process, access the official Department of Home Affairs website. If you don’t already have an account, register by providing your personal details and creating a secure login. Step 2: Complete the Smart ID online application form Once registered, log in to your account and navigate to the Smart ID online application section. Fill in the required information accurately, including your personal details, address, and contact information. Verify all details before proceeding. Step 3: Schedule an appointment After completing the application form, you’ll need to schedule an appointment at a participating bank such as Ned Bank. The website provides a list of authorized banks where you can complete the process. Choose a convenient date and time for your visit. Step 4: Pay the Smart ID online application fee Pay the required application fee online using the provided payment methods. Ensure that you keep the payment receipt as proof of payment. Step 5: Visit the bank branch On the scheduled date, visit the selected bank branch to finalize your application. Bring along the necessary documents, including your proof of payment, identity documents, and any additional documents requested during the online application process. Step 6: Capture biometrics At the bank, your biometric data, including fingerprints and a photograph, will be captured for the Smart ID card. This step is crucial for identity verification. Step 7: Application processing Once your biometric data is captured, the bank will forward your application to the Department of Home Affairs for processing. This step involves verifying the information provided and producing your Smart ID card. Step 8: Collecting your Smart ID After a period of processing, you will receive a notification indicating that your Smart ID is ready for collection. Return to the bank branch where you submitted your application to collect your card. Remember to bring the necessary identification documents for verification. Final thoughts on Smart ID online application The digital identity online application process in South Africa streamlines the procedure of obtaining the card. By following these eight steps—from registering on the Department of Home Affairs website to collecting your card—you can navigate the process efficiently and conveniently. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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- August 31 2023
TechCabal Daily – New day, new coup
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday! ICYMI: Today’s the last day our referral prorgamme will be available. We’re shutting down the programme. We’ll dispense all unclaimed rewards by September 30, so if you’ve qualify for one, we’ll be in touch shortly. In today’s edition Gabon’s military ousts President Bongo Black Ostrich Ventures launches $20 million fund MultiChoice declares $108 million loss ARB rules against Rain for misleading customers with ads The World Wide Web3 Event: The Web3Bridge Conference Lagos Opportunities Politics Gabon military declares military coup Gabon army officers. Image source: Yenisafak Gabon is borrowing inspiration from Niger. Soldiers in the Central African country, on Wednesday, declared that they had seized control of the country, and put President Ali Bongo under house arrest. Why? Gabon’s electoral body announced that President Ali Bongo had won a contentious election, handing him a third term in power. Bongo’s family have ruled the country for 56 years, with Ali Bongo’s father, Omar Bongo, ruling for almost 42 years, from 1967 until his death in 2009. Bongo’s previous election victories weredisputed as fraudulent by opponents, and achange to voting papers just weeks before this year’s election prompted criticism. In the run up to his re-election, the Gabonese government blocked internet access and prevented three French broadcasters from broadcasting their election coverage. Zoom out: While this is Gabon’s first coup, it’s the latest in a string of coups in Africa. It comes weeks after the military takeover in Niger— where the country’s military junta also held the elected president captive.West Africa has witnessed seven coups in the last three years. The latest Gabon coup mirrors the growing frustration of African citizens who feel unable to hold governments accountable for their policies and vote them out. 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. Funding Black Ostrich Ventures launches $20 million fund Black Ostrich Ventures has launched a $20 million pre-seed and seed stage fund. The Los Angeles-based venture capital firm launched the fund to support African startups in the cleantech, supply chain, agritech, and edtech sectors. Image source: Zikoko Memes Supporting African startups: The newly created firm will support startups with check sizes ranging from $50,000 to $200,000, and the fund will focus on startups in Tanzania, Zambia, Morocco, and Uganda. Additionally, the firm will offer a follow-on investment of up to $1 million if the company reaches Series A. Ajani Windsor-Areago, the general partner of Black Ostrich Ventures, says that the decision to focus on these countries was made because he believes that there are significant opportunities for exits and deal activity in these markets. “If you look at the capital inflows into VC in Africa, the Big Four countries—Nigeria, South Africa, Egypt, and Kenya—attract all the capital. But most exits do not happen in these markets,” he said. Zoom out: Windsor-Areago also says that the support for African startups will go beyond funding. “We will be working with founders in a very unusual way. We’re going to surround founders with growth experts and marketing experts to help them grow their businesses. It’s one thing to be great at starting a company, understanding the marketing aspect of the business is another,” he said. Grow with Vesicash Unlock new opportunities for your business with Vesicash! Seamlessly expand into emerging markets using our secure, all-in-one and cost-effective payment infrastructure. Contact Vesicash via our website www.vesicash.com or reach out to our dedicated team at info@vesicash.com Streaming MultiChoice loses $108 million on KingMakers investment MultiChoice is counting its losses. The pan-African broadcaster has lost R1.3 billion ($108 million) in acquiring a 49% stake in KingMakers. Image source: Zikoko Memes In September 2020, pan-African broadcaster MultiChoice acquired a 20% stake in the Nigerian online sports betting company, then BetKing, for R1.9 billion ($112 million). In 2021, MultiChoice increased its stake to 49% for $281.5 million, bringing the total value of its KingMakers shareholding to R5.9 billion ($393.5 million). However, in its latest financial results, the company stated that the naira devaluation in Nigeria and the expansion cost had caused an R2 billion ($108 million) write-down in its KingMakers investment. MultiChoice’s R5.9 billion ($318 million) stake in the betting company is now worth R4.6 billion ($248 million). Zoom out: Experts believe that despite the downturn, the KingMakers investment can still be salvaged. The fate of the KingMakers investment will solely depend on how MultiChoice addresses its operational challenges. Sports betting has proven to be a cash generator for companies that have chosen to play in this area, provided KingMakers maintains consistent client levels. Telecoms ARB rules against Rain for misleading ad Image source: Zikoko Memes South Africa’s Advertising Regulatory Board (ARB) has ruled against telecom Rain for misleading customers with an advertisement. The Ad promises customers they could “join now for just 1 Rand,” and get unlimited 5G home Wi-Fi and free monthly calls and data for two phones. The complaint was lodged by one Trevor Hill, who highlighted that the ad led customers to believe they would receive unlimited 5G home Wi-Fi and free monthly calls and data for R1($0.054). However, upon clicking the ad, customers were redirected to Rain’s website where the actual cost was R559 ($30), along with a joining fee of R1($0.054). The Ruling: The ARB found that the ad’s wording was deceptive, giving the impression of meaningful access to the product for R1($0.054) when, in fact, additional fees applied. The presence of “T’s & C’s apply” did not negate this misleading impression. The ruling noted that the advertisement failed to clarify that the 5G home Wi-Fi and free sim cards incurred separate subscription fees. Although Rain isn’t a member of the ARB, it is aware of the ruling and has made changes to the advertisement and its website. Zoom out: This isn’t the first time
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- August 30 2023
Three problems the Congo Business Summit will solve in Kinshasa
Noel K. Tshiani is the managing director of Congo Business Summit, a flagship conference and expo planned for October 12–13, 2023, in Kinshasa. With its vibrant history and culture, the Democratic Republic of Congo (DRC) has always been a land of potential. However, challenges faced by its entrepreneurs, especially startups, have been many. Congo Business Summit is the largest gathering of startups, innovation leaders, and investors in the DRC. This ambitious initiative is designed to solve three key problems that have prevented the Congolese startup ecosystem from reaching its full potential. Congo’s entrepreneurial spirit is deeply rooted in its people. Throughout history, Congolese have demonstrated resilience, adaptability, and a unique ability to innovate in the face of adversity. But like many emerging markets in Africa, Congo’s promising startups face unique challenges, often stemming from infrastructure limitations, lack of access to capital, and limited opportunities for international expansion. In our interconnected global economy, a nation’s growth trajectory is shaped by how seamlessly its companies can integrate into the international arena. Startups, with their nimbleness and knack for innovation, are at the forefront of this global integration. But without the right scaffolding, guidance and visibility, these nascent businesses risk being overshadowed in the immense global business ecosystem. Congo Business Summit is emerging as the critical link, connecting Congolese innovation with global opportunities. The summit is not just a solution; it is a statement. It announces to the world that Congo-Kinshasa is open for business and its entrepreneurs are ready to take on the world. By addressing the core challenges facing startups, the event aims not only to nurture the local ecosystem, but to position Congo as a burgeoning hub for innovation and real investment opportunities in the heart of Africa. The journey ahead is promising, and with collective efforts, the potential of the Congolese entrepreneurial spirit will be realised on the world stage. Let us delve into the three key problems that Congo Business Summit has identified and the solutions it offers: 1. Boosting global visibility The first hurdle is ensuring visibility for the private sector, the startup ecosystem, entrepreneurs, and the myriad solutions they bring to consumers. Unfortunately, brilliant concepts often fade into obscurity, deprived of the necessary exposure and audience. Congo Business Summit is addressing this visibility problem head-on. By cementing partnerships with the three leading online news media in Kinshasa, and expanding its reach with English-language outlets such as TechCabal, we are ensuring that these stories of innovation receive the spotlight they deserve, both in the French and English-speaking world. In addition, our proactive efforts to secure media coverage from countries such as Nigeria, Kenya, South Africa, the United States, the United Kingdom, and France are putting Congolese entrepreneurs in the global spotlight, championing their groundbreaking ideas, and ensuring that they receive the recognition that is vital to attracting investors, securing business partnerships, and reaching potential customers both in Kinshasa and internationally. 2. Enabling startup fundraising The lifeline of any startup is the capital that fuels its growth. Yet fundraising remains a daunting challenge for many Congolese startups. By inviting business angels and institutional investors from around the world to Kinshasa to participate in Congo Business Summit in October, we are creating a bridge between promising startups and investors with the financial resources to move them forward. This is not just about securing funding; it is about initiating a dialogue, educating investors about the country’s rich investment opportunities, and cultivating a sense of belief in the future of Congolese innovation. President Felix Tshisekedi announced on August 19, 2023, that the national government will prioritise innovation funding in the 2024 budget. 3. Building fruitful partnerships The third challenge involves developing commercial partnerships. Whether it is between startups and large corporations or government agencies in Kinshasa, partnerships are a major contributor to startup success. Congo Business Summit is not just another conference; it is a breeding ground for synergy. I invite not only local players, but also startups from abroad in Nigeria, Kenya, South Africa, France, the United Kingdom, Canada, Germany, Belgium, and the United States to come explore partnerships with Congolese startups. These interactions will open the door for Congolese startups to understand global markets and for international companies to explore partnerships with Congolese entrepreneurs, ensuring a two-way street of growth and learning. In conclusion, Congo Business Summit is more than an event; it is a solution to three key problems the startup ecosystem is currently experiencing in Kinshasa. It is about changing the narrative, driving growth, and ensuring that the Congolese entrepreneurial spirit is not only recognised, but celebrated and supported locally and internationally. Let us not just talk about the potential of Congolese startups, let us make it happen. For a brighter, more innovative Congo, the summit is the beacon that lights the way. That is why I invite business angels, institutional investors, and startups ready for expansion from around the world to join us in Kinshasa this upcoming October on this journey of transformation, networking, and investment exploration. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
Read More- August 30 2023
MultiChoice writes down $108 million on its investment in betting company KingMakers
Thus far, MultiChoice has lost R1.3 billion (~$108 million) in acquiring a 49% stake in Nigerian sports betting company KingMakers in three years. Can the company manage to turn its gamble on KingMakers around? In September 2020, pan-African broadcaster MultiChoice acquired a 20% stake in Nigerian online sports betting company KingMakers, then BetKing, for R1.9 billion (~$112 million). In 2021, Multichoice increased its stake to 49% for $281.5 million, bringing the total value of its KingMakers shareholding to R5.9 billion (~$393.5 million). In its latest financial results, MultiChoice stated that naira devaluation in Nigeria and the expansion cost had caused an R2 billion (~$108 million) write-down in its KingMakers investment. Multichoice’s R5.9 billion ($318 million) stake in the betting company is now worth R4.6 billion ($248 million). “Considering the fact that the 49% (51.23% effective interest) stake cost them around R6 billion (~$393.5 million), it seems in the interests of MultiChoice to try and save the business rather than having to face the prospect of having to further impair the asset or potentially even sell it at a significant loss,” independent financial markets analyst Jimmy Moyaha told TechCabal. MultiChoice is already burning cash in most of its verticals. In its FY 2023 annual results, the company withheld dividends from shareholders to fund Showmax. Funding another bet in KingMakers, which does have growing revenues but also crippling losses, might worry shareholders in the future. How did MultiChoice get here? On paper, the KingMakers deal seemed poised for success. MultiChoice planned to leverage its extensive sports coverage to boost the betting business. The model had worked well internationally, with sports broadcasters like Sky, Fox, and most recently, ESPN, having successfully entered the sports betting business. According to internal data cited by KingMakers, 77% of DStv subscribers are active betters or engage in match predictions, providing an extensive customer base for a betting product. Additionally, sports betting has grown tremendously in Africa over the last half a decade. According to a report [pdf] by KPMG, Africa’s gambling market was predicted to reach a value of $37 billion by 2022, with sports betting accounting for most of that growth. The majority of Africa’s Gross Gaming Revenue (GRR) is sports betting, is expected to rise by 17% by 2027, with online betting revenues growing from $2.9 billion to $5.5 billion. MultiChoice itself had alluded to the sports betting industry’s impressive growth projections as one of the driving seasons for the acquisition. “The global sports betting market is experiencing a growth surge. Africa comprises only 2% of global sports betting revenue and is poised for significant momentum as it plays catch-up,” the company had said at the time of the acquisition. But as MultiChoice would soon find out, growth projections and cumulative annual growth rates do not always mean much when operating in Africa. At the time of the acquisition, MultiChoice said that KingMakers’s ability to expand beyond Nigeria was one of the rationales for purchasing the stake. That has not gone well so far for unclear reasons. The company has had to pull the plug on expansion plans to Kenya and Ethiopia despite adding the experienced Ronnie Whelan as its new chief operating officer. Despite seeing growth in topline revenue since the MultiChoice transaction, that growth has come at a staggering expense to the company’s bottom line. For example, between 2022 and 2023, Kingmakers revenue jumped from $131 million to $198 million. However, its losses followed the same trajectory, increasing from $19 million in 2022 to $28 million in 2023 due to “investment to further scale the business and cash extraction losses out of Nigeria.” According to Moyaha, further losses would put Multichoice and its shareholders in a precarious position. “[Despite the revenues], MultiChoice has already had to raise an impairment of R2 billion on this investment. This impairment was a significant contributor to the group swinging into loss for the year. If the [Kingmakers] isn’t turned around and requires further impairments, MultiChoice could have to write down 18.7% of its non-current assets as per their FY 2023 financials,” he said. Regarding share price, according to Moyaha, shareholders are unlikely to be happy that KingMakers has already had the biggest negative impact on the group’s cash flows from investing activities. What’s next? Despite the headache that the KingMakers investment has caused for both Multichoice’s management and shareholders, according to Mpumi Ndiweni, CEO of advisory and investing firm Colmin Group, it can still be salvaged. “[KingMakers] would most likely focus on consolidation, so it gets out of the red, but MultiChoice needs an inflection point and may want to pump in more resources to achieve that. Let’s hope Multichoice has not missed its inflection point for the investment to lift it, given the African betting long play. Its share price has fallen about 50% this year alone,” Ndiweni told TechCabal. Although KingMakers would leverage MultiChoice’s customer base to differentiate itself from the competition, it still operates independently. However, according to Moyaha, to turn the company’s fortunes around, Multichoice might have to play an active role in the operations of Kingmakers. “Even though MultiChoice holds an effective interest of 51.23% from its 49% stake in KingMakers, the group considers this an associate rather than a subsidiary. This means that while Multichoice does have a significant level of influence in the business, it ultimately does not have control. This may be something they would need to change if they do not agree with the new strategy or find themselves having to invest more in the business,” he said. Sven Forrsman, head of equity sales at Kela Securities, reiterates the need for better management at KingMakers. “The loss in the Kingmakers deal is significant and is probably caused by too much spending on marketing in their expansion efforts. Betting [companies] have shown that there is no J Curve and don’t gain as much traction in a competitive space. Although MultiChoice does need to diversify its business, I don’t think sports betting, although [growing significantly], is the answer,” Forrsman
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