Nigeria’s new blockchain policy leaves crypto in the cold
With its latest national blockchain policy, Nigeria seems to be going big on blockchain technology. But the West African nation does not seem to be welcoming crypto anytime soon—blockchain policy or not. On May 3rd, the Federal Ministry of Communications and Digital Economy (FMCDE) announced the approval of a national blockchain policy. Essentially, this means that the government is throwing its weight behind an emerging technology which it hopes can “facilitate the development of the Nigerian digital economy and enable citizens to have more confidence in digital platforms.” The move was lauded as game-changing and reflective of the government’s pro-technology position. However, several industry watchers are raising questions concerning implementation and asking a critical question: why is crypto still banned by a pro-blockchain government? Blockchain is an advanced technology that uses database mechanisms to record transactions in a decentralised public ledger. Advocates of blockchain describe it as a next-generation technology that can be applied to optimise every facet of human life, ranging from financial services and healthcare to supply chain and identity management. According to research firm Gartner, the business value added by blockchain will increase to over $3 trillion by 2030—a pie the Nigerian government is now hoping to plug the economy into. Crypto is still not welcome For the Nigerian government, approving a national blockchain policy does not amount to accepting cryptocurrency (which remains the most prominent use case of the blockchain). In July 2021, the CBN banned banks from facilitating crypto transactions and asked that banks “close accounts of persons or entities involved in cryptocurrency transactions.” The bank cited terrorism financing and money laundering as its key reasons for the action, maintaining that it was protecting Nigerians from the risks of crypto adoption. Meanwhile, the national blockchain policy draft reveals that the Nigerian government is still crypto-averse as it seeks to develop a regulatory framework for other use cases of the blockchain. “Blockchain technology undoubtedly holds great potential for the development of Nigeria’s digital economy. A lot of the focus has been on cryptocurrencies, especially bitcoin. However there is a lot more that blockchain can do for the economy and this strategy document aims to redirect the focus to other areas,” the draft reads in part. Christian Duffus, founder and CEO of blockchain startup Fonbnk, explained to TechCabal that the blockchain policy may be a reactionary measure by the government to send out a clear signal that it is not broadly against blockchain technologies, especially after the publicity of its ban on crypto. “The blockchain policy is an important move by the government to accommodate blockchain innovation in the country. After the ban on crypto, they can’t afford to be seen as a government that associates illegality with blockchain operators. Interestingly, this policy also provides a framework for eNaira, the blockchain-powered digital currency released by the CBN,” he said. Oluwatobiloba Ajayi, blockchain expert and founder of B2B crypto startup Ivory Pay, remains unruffled by the exclusion of crypto from the national blockchain policy. “Crypto significantly takes control and oversight of finances off the government’s watch. And they don’t want that, so I’m not sure this policy will help crypto,” he said on a call with TechCabal. How does the blockchain policy help? According to the FMCDE, the overarching goal of the policy is to create a blockchain-powered economy that supports secure transactions, data sharing, and value exchange between people, businesses, and government. The policy practically serves as a government-led approach to the adoption of blockchain technology in Nigeria. While the next steps in the implementation process remain unclear, the fact remains that through this policy, the Nigerian government is announcing itself as a collaborator for blockchain-related innovation in the country. Nnamdi Uba, the CEO of HouseAfrica, a startup that leverages blockchain to solve land title ownership in Africa, spoke to TechCabal effusively about the national blockchain policy. “I am one of the people that have been working on that policy project for the past three years,” he revealed. “We want to unlock the power of blockchain in our national economy through a government-led approach. The goal is to entrench the use of blockchain in government processes, then roll it out to the masses.” “However, we must realise that blockchain does not start and end with crypto. My real estate company, for example, is blockchain-powered, yet we don’t use crypto. Blockchain can help in many ways, including the tokenisation of properties, supply chain tracking, and authentication of documents. We will also see more interesting use cases come up in the future. As you know, the incoming administration has also promised to focus on blockchain technology,” he shared. Some initiatives outlined in the policy’s strategy framework include the promotion of blockchain business incentives programmes and the establishment of a national blockchain sandbox for proof of concepts and pilot implementation. These ambitions by the government convey a friendly regulatory framework for blockchain startups in the country. “Historically, we have seen government policies work against tech startups—as the case was in Lagos’ ban on ride-hailing. This is one time we are seeing the government roll out a policy that incentivises builders and investors in this niche, It’s a big deal, but for it to work, the government must be at the forefront. They must drive its implementation and integrate the technology into their own systems,” Ajayi said.
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Eclipse Nkasi created an entire music album in three days with AI and thinks everyone else should too
To prove that AI could create compelling music on a budget, Eclipse Nkasi, created an AI music album in three days with less than $500. Image source: Dall-E/Ngozi A few months ago, AI-generated images could easily be identified by the awkward drawing of human hands. At the time, we mocked AI’s inability to draw hands and questioned the claim that it could replace creatives. But AI-generated images have improved, and these days, it can be difficult to differentiate between images produced by AI and those created by human artists. The same is happening with music, as AI can now mimic the voices of popular artistes and sing in their styles. Despite these advancements, many still doubt that AI can produce good music. Independent artist and former promoter for Nigerian record label Chocolate City Music, Nkasi, tells TechCabal, “When it came to music, people were very sensitive or emotional about their stance with AI. People felt it wasn’t possible that AI could originally create art. You hear arguments like AI lacks soul or it is not possible to generate anything close enough. I took that as a challenge.” Image source: Dall-E/Ngozi While AI music generators can produce impressive and unique sounds across various genres with generic or detailed prompts, there aren’t as many capable of generating impressive original songs. Models like Google’s MusicLM, which was opened to the public yesterday, can make interesting instrumentals. But these models stumble when it comes to lyrics. The lyrics written by MusicLM months ago were reportedly jumbled and incoherent, similar to how words can be scrambled on images generated by OpenAI’s image generator Dall-E. This version that was publicly released will not generate songs with the voice of someone singing, as that may attract copyright problems just like most of the songs featuring the voices and music of known artists have recently. Spotify recently took down thousands of AI-generated songs due to copyright concerns. Read also: What will happen now that AI can sing like your favourite Nigerian musician? Something original and more affordable Most of the popular AI-generated songs feature the AI-cloned voices of popular artists singing already existing songs, not new ones. Remember the AI-generated song featuring Drake that went viral in April? That was not an original. It was a rap acapella reworked with an AI-generated Drake voice. The new vocals were placed over an already-existing beat that had been modified. Nkasi wanted most if not every, creative element of the album to be originally created by AI, so he used different AI tools to work on each part—lyrics, instrumentals, and singing—and put them together. Image source: Dall-E/Ngozi Not only did Nkasi want to prove that AI could create original and emotionally compelling music, he also wanted to show that AI could do it on a tight budget. This ambition was motivated by the former Chocolate City music promoter’s curiosity and his experience handling the music business as part of a label and as a solo artist. “Music is very expensive to create and promote, especially for new artists,” Nkasi told TechCabal. According to him, a music album project generally costs ₦2 million ($4,339) to ₦3 million ($6,509) for an average artist. “You need to pay for beats and the average music producer in Lagos who knows what they are doing would charge you about a ₦100,000. Producers like Masterkraft charge well over a million naira. If you want to do this on a basic level, ₦100,000–₦200,000. If you are going to do 13 songs, you can do the math. Also, mixing and mastering can cost around ₦100,000.” But Nkasi wanted to create an album for less than $500 (₦231,000) in three days. The result of his efforts is an album titled Infinite Echoes, which he published on streaming platforms like Spotify and YoutubeMusic under his studio name, Eclipse Nkasi. “Apart from the overheads of generators and so on, it was insanely cheap. I don’t think I spent more than half of the $500 budget I had. The most money I spent on any one tool was the voice synthesis tool that allowed me to create an AI singer that I christened Mya Blue. That cost me about $168 for the software and voice bank. Extra voice banks cost around $70,” Nkasi said. Read also: Google is set to change how you create and listen to music with its AI music generator Creating the album Save for some input from him, Nkasi insists that the entire creative process of producing the nine-track album was done with artificial intelligence. According to him, AI suggested the title, “Infinite Echoes.” It also conceptualized the album, created the album cover, wrote the songs, and created the tracklist, song versions, and instrumentals. AI also sang most of the songs. “I am well aware of what it takes to create an album on the artist and business sides, but I just wanted to get the album done in three days,” he told TechCabal in an interview. Image source: Dall-E/Ngozi Nkasi developed the album’s instrumentals on an AI music generator, SoundRaw. The generator has a bank of royalty-free instrumentals generated by AI. “You can tailor the length, tempo, composition, instruments, and genre of the sounds to suit your needs,” he said, adding that he has a paid account that costs $15 a month. He downloaded most of the instrumentals he needed in two days, and he had 28 days left to access many more instrumentals. “It is so cheap. If I was still a hustling artist, like in my early days, it would have helped me create multiple albums in a few days,” he said. Aside from SoundRaw, Nkasi also used AI tools such as voice synthesizers, ChatGPT, and the image generator Midjourney AI for the album. ChatGPT wrote the lyrics and suggested prompts for other AI tools, such as the image generator Midjourney, which was used to create the cover of the album. “I paid for a few other tools that I eventually didn’t use. Of all
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Kenya says Sama must pay salaries
Lire en français Read this email in French. Editor’s Note Week 19, 2023 Read time: 5 minutes The weekend is here, let us rejoice! Start off your weekend reading the compelling stories that await you in this edition of Tc Weekender. Enjoy! Pamela Tetteh Editor, TechCabal. Editor’s Picks Kenya to tax content creators Kenyan content creators are in for a tax-y ride! The Kenyan government is slapping a 15% withholding tax on every payment that goes into the pockets of our beloved digital creators. Learn more. SA gets on the greylist South Africa has landed itself on the “grey list” for financial crime, courtesy of the Paris-based Financial Action Task Force (FATF). It appears the country has been caught snoozing on its efforts to combat illicit financial flows and terrorism financing. Learn more. Sama must pay moderators Sama’s “layoff party” was cancelled weeks ago, and now the Kenyan court is asking the former content moderation upstart to ensure that the moderators it has been trying to fire get paid their salaries. Learn more. Safaricom’s new license Safaricom Ethiopia scored a license from the National Bank of Ethiopia to offer mobile money services. With Safaricom’s track record, the Ethiopian fintech scene should expect the telecom to spice things up and bring the heat. Learn more. MTN wants to sell its West African assets It appears that MTN is dialing down its operations in certain regions. Word on the wire is that MTN is engaging in talks to unload some of its West African assets to Axian Group, a pan-African investor in telecoms. Learn more. NBC can no longer fine stations A Nigerian Federal High Court has dropped a bombshell ruling, saying that the Nigerian Broadcast Commission (NBC) doesn’t have the power to dish out fines to broadcast stations for any reason. Learn more. TC Daily Get the most comprehensive insights and stories about Africa’s tech and business ecosystem. TC Daily goes out every week at 7 AM (WAT). . Zimbabwe’s gold currency Zimbabwe is moving forward with the launch of its gold-backed digital currency this week. Despite the IMF labeling it a wrong move, the country used nearly 140 kilograms of gold reserves to back the first sale of its digital money. Learn more. Mozambique gets 5G East Africa’s Mozambique joined the club of countries embracing the cutting-edge fifth-generation network (5G), all thanks to telecom company Vodacom. Learn more. Khazna plans for $250 million data centre in Egypt Guess who’s joining the party? Khazna, the UAE-based wholesale data center provider is set to shell out a staggering $250 million to build a brand-new data center in Egypt. Learn more. Updates from Google I/0 At this year’s Google I/O, the tech giant announced a folding phone, key software updates, and of course, generative AI which will most notably be coming to Search. Read more. Who brought the money this week? South African Health-Tech company Quro raised $1.3 million in an undisclosed funding round from Mineworkers Investment Company (MIC). Egypt-based fintech company Balad closed an undisclosed amount in a pre-seed funding round. The round was led by Acasia Ventures. Other investors in the round include Launch Africa, Future Africa, V&R, Magic Fund, First Circle, Sunny Side, and several family offices. Kenyan fundraising company, Raise, secured undisclosed funding from Carta, a San Francisco-based company specialising in capitalisation table management and valuation software. DigsConnect, a South African student housing company, received undisclosed funding from Itaba Capital. What else to read this weekend? We are doing 5G wrong in Africa Lazerpay shut down, high on hope but short on capital Meet the African streaming platform trying to take on Netflix Fintechs fight chargebacks with decline fees What does marketing look like for companies nowadays? What African founders think about the recent funding downturn Share TC Weekender Written by: Ngozi Chukwu & Hannatu Asheolge Edited by: Pamela Tetteh 18, Nnobi Street, Surulere, Lagos, Nigeria Unsubscribe from TC Weekender Kenya says Sama must pay moderators
Read MoreHow an Ecoplexus ponzi scheme scammed Batswana millions
When Tshepang Katso* got the Whatsapp invite from a friend to join an “Ecoplexus investment group”, she was told that it would be like “downloading money from the internet.” It was not until this week, when the Ecoplexus scam collapsed, that the 29-year-old unemployed accounting graduate realised that she had been the victim of a ponzi scheme. According to Interpol’s Online Scams report, Africa loses over $500 million of its GDP per annum to online scams such as email scams, romance fraud, social media scams, malware attacks, and so on. “It looked like such an easy way to make money because initially I joined for free and made easy returns. I then kept going up the different levels trying to get even bigger returns through the daily withdrawals. In the end, I invested over P3,000 (~$223), money I had borrowed, before the whole thing collapsed,” Katso told TechCabal in an interview. The Ecoplexus scam purported to invest victims’ funds in products of Ecoplexus, a real US company which specialises in the development, design, construction, and financing of renewable energy projects in the US and key international markets. The modus operandi was of a typical ponzi scheme, which refers to a scam in which “a con artist offers investments that promise very high returns with little or no risk to their victims. The returns are said to originate from a business or a secret idea run by the con artist.” The Ecoplexus scheme required the victim to enter the initial stage, called PV0, in which no investment was required, but a daily income of P2 (~$0.15) was guaranteed. Withdrawals at that level capped at P150 (~$11). This was said to be a trial stage and the victim had to upgrade to another level within 10 days. In addition to the daily income, victims also earned returns of P2 for each successful registration of the first 20 people they referred. The next stage, known as PV1, required an initial investment of P230 (~$17) with a daily income of P7, capped at 365 days. In theory, victims were looking at profits of over P2,550 (~$190) in one year, a whooping 1,100% return on investment, if they held onto that level for a year. The returns got even wilder as victims moved up the scam’s “levels”. At the highest level, known as PV5, an initial investment of P26,000 (~$1,935) would yield P1,100 (~82) daily, also capped at 365 days. Assuming the victim made daily withdrawals, they were made to believe that they could make P401,500 (~$30,000), a 1,544% return on investment, in just a year. Apart from the daily returns, victims were also promised numerous incentives including referral rewards for recruiting more victims, upgrade rewards for moving up a level, daily commissions for completing tasks, and lucky wheel rewards which promised up to P9,999 (~$744) in raffle-like draws. “For the well informed person, it seems ridiculous that people fell for a scam that promised such unrealistic returns. But you have to understand that the majority of victims are not only limited in their knowledge of internet scams, but they are also desperate for any easy money that they think they can make,” said Richard Harriman, a consumer protection advocate who runs a 204,000-member awareness group called Consumer Watchdog Botswana. Indeed, most victims of the scheme, even those who managed to make some withdrawals early on, seemed to not have any idea of what exactly they were investing in. “All I know is that I had a link where I just had to click “working” every day in order to get my daily withdrawal. I also had to share referral links to other people. I honestly don’t know what product or service the company Ecoplexus is involved in,” said another victim who spoke to TechCabal under condition of anonymity. The links in question led to a dupe of the real Ecoplexus website. While the real address of Ecoplexus is www.ecoplexus.com, the scheme’s referral link was h5.ecoplexus-es.com. As word of this get-rich-quick scheme spread like wildfire on social media platforms such as Facebook and Whatsapp, groups were flooded with referral links asking members to join. As more people joined and boosted about their withdrawals, cracks in the Ecoplexus scheme started to show. In late April, some customers began to experience delays with their withdrawals. Amidst inquiries, the victims were directed to contact “Regional Managers”, the supposed representatives of Ecoplexus in the country. Reasons given by the regional managers for the withdrawal issues were varied but most of them seemed to point the fault at the victims’ bank accounts, held at First National Bank Botswana (FNBB). Some victims contacted the bank to inquire about the status of the funds. As the complaints mounted, the bank put out a statement denying any knowledge of such funds. “It has come to our attention that there are ongoing allegations on social media regarding FNBB’s involvement with a certain entity named ECOPLEXUS. These allegations claim that FNBB is withholding funds for some individuals who are supposedly investors in ECOPLEXUS. FNBB would like to confirm that these allegations are not true and we advise the public to exercise caution when approached to deposit money to any FNBB accounts under the pretext that they are owned by ECOPLEXUS,” the bank’s statement read. According to Harriman, there is strong reason to believe that the total amount scammed from the victims who were unable to withdraw their funds runs into tens of millions of pula. The Ecoplexus scam website, meanwhile, is no longer functional. “There are people who invested tens of thousands of pula into the scheme as they wanted to up their amount of daily withdrawals. Those are the people who have been hit the hardest and it’s sad to see people’s money they work hard for going down the drain over something that could be avoided with the most rudimentary education,” said Harriman. However, some victims are optimistic about getting their money back and have involved law enforcement officials in their quest
Read MoreSouth Africa to start paying individuals and businesses for saving electricity
South Africa government plans to introduce incentives for individuals and businesses to save electricity. According to South Africa’s Electricity minister Kgosientsho Ramokgopa, the South African government will provide a financial incentive for demand reduction by commercial and residential customers through its Distribution Demand Management programme. Speaking at a press briefing to provide an update on the country’s Energy Action Plan, Ramokgopa stated that the programme will provide a R3 million incentive for every megawatt saved through reduced demand. “Demand-side interventions are going to be a focal point as we enter into December, because the initiatives at household level are cheaper and faster,” Ramokgopa said. “It’s aimed at ensuring that we are able to achieve the demand reduction during specified periods, and this will typically be during periods of peak [demand].” The minister said the programme’s key performance indicator will be revealed once the government has “aggregated the number of households and companies that are participating.” The incentive will be granted based on the relative reduction in usage to a verified baseline. All applicants will be subjected to an independent measurement against the baseline in order to prevent abuse of the incentive system. Additionally, Ramokgopa stated that Eskom plans to bring 3,800MW of additional generation capacity onto the grid in the near future, with 400MW expected by the end of May 2023. The government’s Integrated Resource Plan (IRP), gazetted in 2019, states that 78GW of energy capacity is needed by South Africa by 2030 – but the estimated costs involved, coupled with the underwhelming progress of government projects, suggests a bleak future for the country.
Read MoreZimbabwe backs new digital money with 140kgs of gold, but IMF has concerns
Southern African country Zimbabwe has backed its new digital money with 140kgs of gold as part of efforts to support the currency. This is despite the IMF’s warning that the policy may lead to the depletion of reserves. Zimbabwe is using 140 kilograms of gold from its reserves to solidify the foundation of its inaugural digital currency sale. Per Bloomberg, the central bank revealed that they received 135 applications worth 14 billion Zimbabwe dollars ($12 million) for the purchase of their gold-backed digital tokens. The country has also announced that there will be a second auction on May 18, 2023. In the midst of sky-high inflation, the Zimbabwean dollar is facing a tough time, reportedly losing over 40% of its value against the US dollar this year. As the local currency takes a nosedive, there has been a surge in demand for the American dollar. The country’s finance minister, Mthuli Ncube, stated that a significant portion of domestic transactions is now conducted in foreign currency, highlighting the preference for stability. In a bid to facilitate local transactions, the government has even introduced gold coins alongside these digital tokens. It’s an interesting approach, but the International Monetary Fund (IMF) has expressed concerns about the potential depletion of the country’s gold reserves. The country is also exploring other measures to stabilise its economy. It has kicked things off by scrapping the need for import licenses, allowing goods to flow into the country without any import duties or taxes. Also, the Reserve Bank of Zimbabwe is considering cranking up the interest rates on short-term loans, even though their benchmark rate is already a staggering 140%, earning them the title of the country with the highest in the world.
Read MoreSA’s competition authority greenlights sale of national airline
After 11-months of vetting the transaction, South Africa’s competition authority has given a thumbs up to sale of the country’s national airline. South Africa’s Competition Commission has given the green light to Takatso Consortium to acquire a 51% stake in the national airline South Africa Airways. The Department of Public Enterprises (DPE) will retain the remaining 49% of the airline. The sale follows an 11-month investigation into the acquisition terms and conditions of the sale. The Competition Commission says it has approved the deal on condition that Takatso agrees to retain a minimum number of employees. The commission found that the merger is likely to result in a substantial lessening and prevention of competition in the domestic passenger airlines market. That is because the merger will likely facilitate the exchange of competitively sensitive information between SAA and Lift, through Global Aviation and Syranix having shareholding and the ability to appoint directors to Takato’s board of directors. “Takatso will have access to SAA’s competitively sensitive information by virtue of its majority stake in SAA, pursuant to the proposed merger. This concern is further exacerbated by the fact that the domestic passenger airlines market is highly concentrated, barriers to entry are high and is amenable to coordinated effects,” the authority said. To remedy that situation, the authority added a condition that includes starting a process to allow some shareholders in the consortium to exit the deal in the spirit of fair competition in the domestic airline.
Read MoreSouth Africa records 600% increase of fraud cases in four years
South Africa recorded a 600% increase in fraud cases between 2018 and 2022. According to statistics from the Southern African Fraud Prevention Service (SAFPS), there was a 600% increase in incidents of fraud reported by their members in 2022 when compared to 2018. In order to tackle this growing problem of fraud, the SAFPS has launched a fraud prevention protocol called Yima, which seeks to educate the broader public who may be susceptible to fraudsters. According to Nazia Karrim, head of product development at the SAFPS, Yima will establish a proactive approach to combating fraud and scams. “In response to the growing need for a proactive approach to fraud prevention, the SAFPS is developing a product called Yima. Once launched, the product’s website will be a one-stop-shop for South Africans to report scams, secure their identity, and scan any website for vulnerabilities related to scams. They will also be able to educate themselves on identifying a scam,” says Karrim in a statement. “These tools will enable consumers to surf the net more confidently and go about their daily lives aware and informed. These are just some exciting elements South Africans can access through the site.” The main element of the website will be the ability to report a scam incident or any suspicious activity to the SAFPS. This suspicious activity includes a fake or suspect-looking online shopping website/portal and instances where the user has received phoney banking information. These reports will be collated and shared with law enforcement for investigation. Users will also be provided with a scams hotline to report a fraud incident directly to their banks, retailers or insurance companies via a single number. Users will only need to remember one number rather than search for each institution’s contact numbers online. Additionally, Yima users will have access to the consumer products and services offered by the SAFPS. On top of the meteoric rise in fraud cases, in a report last month, INTERPOL also gave South Africa the unwanted title of the cybercrime hub of Africa, with the country recording over 230 million incidents.
Read MoreAWIEF opens the 2023 Academy for Women Entrepreneurs
The United States and Africa Women Innovation and Entrepreneurship Forum (AWIEF) have announced the 2023 Academy for Women Entrepreneurs. The programme is open to young women between 21 and 35 in South Africa, Lesotho, and Eswatini. The Academy for Women Entrepreneurs, launched in 2019 as an initiative of the U.S. Department of State’s Bureau of Educational and Cultural Affairs, has helped over 25,000 women across the world grow their businesses and learn digital skills. It aims to promote economic growth and prosperity and empower women to build better futures for their families and communities. This year, the South African cohort will select 140 participants to join activities in Bloemfontein, Cape Town, Durban, Johannesburg, Maseru, Mbabane, and Pretoria. With this expanded 2023 cohort, the total number of women entrepreneurs trained through the U.S. Mission to South Africa and AWIEF partnership will surpass 550. This year, the opportunity is open to women from neighbouring countries, Lesotho and Eswatini. Selected participants will get access to AWIEF Community, which provides ongoing peer learning and support, expert-facilitated hybrid business management training and mentorship sessions, as well as free delegate passes to the 2023 AWIEF Conference in Kigali, Rwanda, among others. Interested women can apply here. Africa has more female entrepreneurs than anywhere else in the world, with women making up 58% of the continent’s self-employed population. However, women entrepreneurs across sub-Saharan Africa continue to earn lower profits than their male counterparts and have access to less funding, making it difficult for women-owned SMEs to grow. There is a $42 billion gender funding gap across Africa, costing the continent about $92 million per year. Irene Ochem, founder and CEO of AWEIF, shared that the Academy for Women Entrepreneurs program has been a huge success in South Africa so far. “It has empowered enterprising young women not only with the knowledge, networks, and access they need to launch and scale successful enterprises but also with personal development and growth. We are excited to be continuing in our role as implementing partner and extending the impact to women in Lesotho and Eswatini.” AWIEF is an award-winning women’s economic empowerment organisation that provides women entrepreneurs in Africa the support needed to grow their businesses. Their mission is to foster women’s economic inclusion, advancement and empowerment through entrepreneurship support and development.
Read MoreWasoko expands operations to Southern Africa with launch in Zambia
Wasoko, an African e-commerce company operating in the informal retail supply chain, has expanded into Zambia – the company’s first location in Southern Africa. Wasoko, a pan-African B2B e-commerce company with a presence in East and West Africa, has kicked off operations in South Africa with the launch of operations in Zambia. The company will launch its operations in Lusaka, the capital of Zambia, and says it will invest $1 million in its first year to “support local Zambian businesses and communities to get more essential goods for less through the power of e-commerce”. Wasoko, formerly Sokowatch, uses its platform to allow informal retailers to order products via SMS or its mobile app for free, same-day delivery, to their stores. The platform also provides retailers with credit offerings by leveraging purchasing history. It has been difficult to place a value on the informal retail market in Africa due to how fragmented and unorganised it is, but it is estimated to be worth between $600 billion and $1 trillion. Wasoko will also pivot to a hub and spoke logistics network (a model that uses a large distribution centre to dispense inventory to multiple fulfilment centres) and will use Lusaka as the central hub for Zambia. The company says it is pivoting to this model to drive stronger operational efficiency and significantly boost its capacity for faster regional expansions. According to the Zambia Information and Communications Technology Authority (ZICTA), there are 11.1 million active internet subscriptions in the country which translates to 56.8 per 100 inhabitants. Sharing why Wasoko will launch its South African presence in Zambia, Daniel Yu, the founder and CEO of Wasoko, said, “With high smartphone usage and a pro-business government administration keen on expanding the country’s digital economy, Zambia is an ideal environment to launch our model and strongly aligns with our current core markets, both in terms of similar regulatory practices and a supplier base which is intertwined with East Africa.” In addition to its latest expansion, Wasoko will double its service radius across all of its existing locations in Kenya, Tanzania, Rwanda, and Uganda, where it says it has amassed a network of over 200,000 informal retailers and delivered more than 5 million orders to date.
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