South Africa approves $86 million for e-policing
Lire en français Read this email in French. Editor’s Note Week 22, 2023 Read time: 5 minutes In South Africa and Nigeria, it seems like the pockets of citizens and the government are getting quite the heatwave thanks to skyrocketing fuel prices. Catch up on the scorching news and more from all across Africa. Pamela Tetteh Editor, TechCabal. Editor’s Picks SA approves $86 million for e-policing The Gauteng province in South Africa has given the green light to R1.7 billion ($86 million) for e-policing. This eye-popping sum will be used to acquire crime-fighting gadgets, including drones. Learn more. Nigeria ends fuel subsidies Nigeria has ended fuel subsidies. This move has sent transportation prices soaring to new heights. Now, it’s fueling quite a debate about the future of work in the country. Will folks have to pedal their way to the office? Learn more. Eskom suffers from fuel inflation Fuel is also burning holes in government pockets in other African countries.The expenses of South Africa’s state-owned power utility, Eskom, have more than doubled due to the cost of fuel. Learn more. CBN denies naira devaluation The Central Bank of Nigeria (CBN) dismissed claims that it devalued the naira to ₦630 per $1 from the ₦461 it previously was. Learn more. Zero tax for EV manufacturers During the West Africa Automotive Show, Nigeria declared a jaw-dropping 10-year tax “brake” for all electric vehicle manufacturers. Talk about revving up the green revolution! Learn more. Multichoice dabbles in payments As DStv grapples with its TV troubles, Multichoice dives into the payment game. It has launched a brand-new payment platform in partnership with Rapyd and General Catalyst. Learn more. Kenya discontinues Humda After spending millions of dollars, Kenya has paused the roll out of digital ID Huduma Namba. However, the new government is trying out other digital IDs. Learn more. WellaHealth In a rapidly changing job market, the key to retaining top talent lies in prioritizing employee welfare. But how does health insurance impact job retention, especially in volatile macroeconomic conditions? Learn the best practices to foster a healthier, happier, and more loyal workforce by getting this report now. Second stage of Hustler’s fund Kenyan president, William Ruto, has kicked off the sequel of the Hustlers Fund. This time around, the government will extend the support to Chamas and SACCOs Learn more. 500,000 customers affected by data breach South African retail giant JD Group has announced that it suffered a data breach that exposed the personal information of over half a million of its customers. Learn more. NearPay wins award at GITEX Nigerian fintech start-up Nearpays won the coveted Fintech and Blockchain Technology at the inaugural Gitex Africa tech conference in Marrakech, Morocco. Read more. Who brought the money this week? Morrocan PrestaFreedom, a home services marketplace, raised $1.1 million in an undisclosed funding round from Azur International Fund. Zofi, an Uganda-based fintech company, raised $1 million in pre-seed funding from Advancly, a Nigerian-based investor Advancly. Moroccan health tech company DataPathology received $1 million in an undisclosed funding round from Azur Innovation Fund. Zydii, a Kenya-based digital training company, raised an undisclosed amount in a pre-seed funding round from DOB Equity, Kua Ventures, Kaleo Ventures, and NaiBAN. What else to read this weekend? Two years post-acquisition, Paystack is expanding products and gunning for roots in African markets How Zambia is prepping to become Africa’s next major tech hub How will a unified FX rate affect virtual card operations in Nigeria? This platform wants to help SA creatives easily monetise their content. Here is how it works Tech builders in Nollywood are trying to solve the industry’s production and distribution problems Intron Health is bringing AI superpowers to hospitals in Africa Written by: Ngozi Chukwu Edited by: Pamela Tetteh 18, Nnobi Street, Surulere, Lagos, Nigeria Unsubscribe from TC Weekender
Read MoreNigerian start-up Nearpays wins coveted fintech prize at Gitex Africa
Nigerian fintech start-up Nearpays flew the country’s flag high at the inaugural Gitex Africa tech conference in Marrakech, Morocco, on Friday when it was awarded the coveted Fintech and Blockchain Technology category of the Supernova Challenge. Nearpays, a full-service financial payment platform that acts as an end-to-end financial service for all our clients, beat out stiff competition to scoop the $10 000 prize. Nearpays beats stiff competition Speaking to TechCabal after the win, Nearpays founder Victor Daniyan put into perspective what winning the competition means to his company and its future. “I’m super excited that it brings opportunities for start-ups in Nigeria, and we all have access to a better future. It shows that we can get to the top with the right platform,” Daniyan said. “This means more work. The Gitex Africa Supernova Challenge is the biggest pitch competition in Africa, with a total cash prize of $100 000 for categories such as Cybersecurity, AI and Digital Cities, Health Tech, and Sustainability and Agritech. “The competition was very tough. One thing I know for sure, especially for start up in Nigeria, is that we need a lot of mentorship to get to a productive stage. I’m sure that with the right mentorship, we can all do better,” Daniyan said. JUST IN! Nigerian Startup, Nearpays, emerges winner at Supernova Challenge Competition in Fintech and Blockchain Technology Category at GITEX Africa, in Morocco. pic.twitter.com/2XZJSPmGlw — NITDA Nigeria (@NITDANigeria) June 2, 2023 “I came with the intention to win all the way from Nigeria. I was determined; I was ready. It was a surprise, but I was also very determined to win,” Daniyan said. “I took the time to understand the people hearing the pitch. I took the time to research them, what businesses they were operating in, and a little bit about their personality from their LinkedIn page. I was able to make them understand our business in a very short space of time – just going straight to the point.” Nearpays simplifies online payments Daniyan said the prize will go a long to helping Nearpays get its payment card system licence, which costs around $15 000. Nearpays simplifies online payments based on the principle that payments should be seamless. The company has developed a way to put point-of-sale transactions back into the hands of users. The company says, “The experience is simple, on the go, and comes with no extra bank charges for all our users.” “I’ve been in telecommunications for about five years now. I started with Huawei and then moved to Nokia, where I helped set up the 5G space in Nigeria. My team has helped me come up with the right decisions and product. We have continuous development.” By most accounts Gitex Africa was an overwhelming success, bringing start-up, founders, investors, telecoms and IT companies from all over Africa and the globe together in Morocco to outline and develop the future of tech in Africa. Organisers welcomed over 900 big tech companies, government entities, start-ups and participants from more than 100 countries across ten halls and 45 000sqm of exhibition space in a purpose-built super venue at Place Bab Jdid, Bd Al Yarmouk in the Red City of Marrakech. Fintech prize puts Abuja start-ups on the map “It’s an awesome platform; it’s an awesome opportunity. I have not seen anything this big in a long time. I’m super excited that we have this in Africa. I’m reminded of one quote from Google that said Africa will have the next set of billions of users to appear on any tech platform in the world,” Daniyan explained. “It’s an opportunity for start-ups to connect, have mentors and show their products to the world.” “The competition has allowed me to connect with good mentors,” Daniyan said. “Of course, I’m still young, and I need mentors who have come before me, as well as give us publicity so more people get to know about our product in Abuja because most of the start-ups that are thriving are coming from Lagos, but it’s an opportunity for people to see that Abuja is also thriving in the start-up space in Nigeria as well, coming up with the best products and new technologies coming out from Nigeria and not coming from abroad. This will inspire more start-ups and show them an opportunity for start-ups in Abuja.”
Read MoreExclusive: Eyowo shares new timeline for resumption of interbank transfers
Eyowo has set Monday, June 12, 2023, as the new deadline for the resumption of interbank transfers. Meanwhile, the company is exploring alternative ways to compensate depositors who are in dire need of their funds in Eyowo. Digital bank Eyowo has now announced a new timeline for the restoring interbank transfers—Monday, June 12. Although Eyowo users can currently transfer money to other Eyowo accounts, they are still unable to transact with other banks. “Other functionalities of the Eyowo platform, such as airtime transfers, transfers within Eyowo accounts, and cable subscriptions, continue to operate normally. We are actively collaborating with its partner banks to resolve these issues, and they anticipate a resolution by the end of business on Monday,” Eyowo said in an exclusive interview with TechCabal. The company has also said that it is pooling funds from other sources to address the urgent needs of customers until then. Since Sunday, May 25, Eyowo users have faced restrictions in receiving and withdrawing funds from their Eyowo accounts after the digital bank’s MFB licence was revoked. The CBN declined to provide specific details regarding the reasons for revoking Eyowo’s license after TechCabal reached out to the apex bank. Speaking on behalf of Eyowo, Onyekachi Irozuru, a project manager team lead told TechCabal that one of the reasons for the revocation is the company’s failure to meet certain benchmarks set by the CBN for MFBs. They did not share specific details. Eyowo has assured its users that their funds are securely held in partner deposit banks, and the only hindrance they are currently experiencing is related to regulatory issues, specifically with interbank transfers. Eyowo pools funds for customers in dire need of cash Moreover, Eyowo says that it has been using various methods to provide funds to customers who have expressed urgent financial requirements. In a conversation with TechCabal, the digital bank shared its commitment to addressing customer needs while working closely with the CBN to resolve the situation. “We have encountered customers who require funds for fulfilling customer orders or paying medical expenses for their loved ones. Depending on the specific circumstances, Eyowo has been sourcing funds from its network of friends, supporters, and even employees have been utilising their personal resources to fulfil either partial or full amounts requested by customers,” it stated. TechCabal was not able to confirm these claims, but asked why employees are actively making personal financial contributions to address the issue. Onyekachi Irozuru, a project manager team lead at the digital bank explained that such camaraderie stems from the company’s culture, which fosters a sense of operating like a family. To illustrate why employees are going to great lengths to resolve the problem, Irozuru, who has been with the company for five years, recounted a personal experience, a time when his wife faced complications during childbirth, and his boss reached out to check on him. Upon learning about the complications, the boss swiftly arranged for Irozuru’s wife to be transferred to Reddington Hospital, a popularly expensive hospital. “When we arrived, it became evident that the [Reddington] hospital was already prepared for their arrival, promptly taking charge of the situation and ensuring a safe delivery for my wife,” he elaborated. “Eyowo genuinely cares about people, including both customers and employees, and that is why employees are motivated to go above and beyond to resolve the current problem,” Irozuru added. In contrast, certain Eyowo users have resorted to alternative methods to withdraw funds from their Eyowo accounts. Among these methods, some people are buying airtime and subsequently selling them to receive cash in return. Others are advertising the airtime on social media platforms, while some are using features like Palmpay’s Recharge2Cash to get cash. Eyowo, told TechCabal that the customers’ ability to access their funds through these means should serve as an assurance that their money remains secure and will be accessible by the end of business on Monday. Editor’s note: This article has been edited to reflect that Eyowo will only be restoring inter-bank transfers by Monday, and not its MFB licence. The company has not disclosed when the licence will be restored. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreFuel hikes trigger surge in ride-hailing prices, leaving customers and drivers discontented
Following the removal of fuel subsidies, fuel prices nationwide have skyrocketed, triggering a struggle for profits and cost savings among riders, drivers, and ride-hailing platforms. In his inaugural speech as President of Nigeria, Bola Tinubu announced the removal of fuel subsidies. This announcement has had an instant impact on the transport sector, with prices rising rapidly, particularly in the ride-hailing space. “I paid 4k from Obalende to Victoria Island!” Tobi, a content manager living in Lagos told TechCabal, sharing that the usual fare for this trip was around 1,500 Naira before this week. Tobi has now switched to public transportation to manage costs. Some observers say that this rise in prices may convince ride-hailing companies to offer ride-sharing services to riders. But there are some trust and safety concerns to consider. Illy, who uses Uber and Bolt, told TechCabal, “I won’t share a ride because I don’t trust people. Instead, I use Rida and inDriver too when prices on Bolt are too high.” On the other hand, Tobi said, “I can use the ridesharing feature only with people I know. Otherwise I will opt for public transport, even public bus fares are even high.” A different tale While customers say the prices for rides have increased, drivers say the prices still do not cover their operating expenses. “Due to this fuel subsidy issue, I don’t go out, the prices they (Uber) give are ridiculous,” he said. “I just bought N1000 fuel worth 2 litres, where will 2 litres lead you? Now they will give a trip of 1500-1700 which would last up to 45 minutes, and I will spend nothing less than 5 litres on that trip, so tell me how much profit I’m going to make?” said Finbar, an Uber driver in Lagos. Finbar has stopped working for now, until Uber reevaluates its pricing. According to him, Uber hasn’t significantly raised prices despite the fuel price hike and it is affecting drivers’ earnings. “We have not seen any mail from Uber that indicates change of prices due to the fuel subsidy removal,” he noted. Tope Akinwunmi, Uber’s country manager, told TechCabal that Uber is staying on top of the situation. He said, “we are aware that the news of the recent fuel hikes and fuel subsidy removal is affecting drivers on our platform, and we are taking an indepth look into this. Drivers are at the heart of everything we do, and we are currently reviewing the situation, and gathering feedback from drivers and riders to inform future changes. Once we understand the implications, we will share an update.,” While several drivers who spoke to TechCabal are dissatisfied with the current prices on the ride-hailing app, Uber is wary of decreased patronage if prices are too high. “We recognise the pressures drivers are under, including the increasing cost of living. It’s important to understand that fares do fluctuate as a normal part of any business based on various factors such as seasonality and the macroeconomic environment,” Uber concluded. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreHow will a unified FX rate affect virtual card operations in Nigeria?
In his inaugural speech, President Bola Tinubu confirmed that his administration would work towards a unified exchange rate. What will this mean for the operations of virtual cards in the country? President Bola Tinubu’s plan to unify the country’s exchange rate—following advice from the World Bank and the International Monetary Fund (IMF)—is now the subject of several conversations. Experts say the current exchange rate regime has made international payments difficult. Yet, moving to a single, market-determined exchange rate will affect virtual card operations in Nigeria. What will happen to virtual cards? Uzoma Dozie, CEO/Founder of Sparkle Nigeria, says he doesn’t foresee any significant impact on the virtual card businesses in the country, considering the current operational landscape and existing policies. “However, operational costs for Naira-dominated virtual card businesses with a foreign exchange component may experience increased operating costs, which depend heavily on various local and global economic factors. We also need to consider that virtual cards are already operationally more cost-effective than physical cards because there are no production, transportation, storage, or delivery expenses to worry about. It is too early to start speculating now as we look forward to how this will play out,” he told TechCabal. For Ibrahim Toyeeb Ibitade, CEO of Leatherback, a cross-border payments platform, until Nigeria fixes its FX shortage, a unified exchange rate will not affect the operations of virtual cards. “The only time we will see any significant impact is when the country has been repositioned and restructured so that we can generate as much FX as needed by different sectors of the economy. But for now, there will still be that scarcity problem because Nigeria isn’t generating enough FX,” he said. Traditional banks are the potential winners The $20 monthly limit on foreign transactions for Naira cards opened up the market for virtual cards. Dozie explains that if the Central Bank chooses to expand the FX market by permitting banks unrestricted access to buyers, there is a possibility for an increase in supply. This could lead to banks raising the FX limit on naira cards. “With the potential for a unified exchange rate to further open the market, banks can access FX more efficiently than was previously possible. Hence we can expect banks and other providers to increase card limits, whether physical or virtual and a more competitive operating environment,” he added. Charles Odogwu, a digital payments expert, shares a similar view. “Banks are going to open their doors and encourage customers to use their naira cards. There is a possibility that banks might not have a limit cap on spending because the FX is available, and there is no disparity in the rates. But on the other side, if the banks put a limit on their cards, virtual dollar cards will still exist and remain go-to alternatives for most people,” he told TechCabal over a call. A virtual card user who spoke to TechCabal anonymously claims that, from his experience, banks are more efficient in processing payments than fintechs when it comes to card services. “As much as banks have inefficiencies in terms of their infrastructure, I still believe that they have a higher tendency to succeed than fintechs. You’d hardly hear of a traditional bank announcing a downtime in its card services,” he said. Where does this leave fintechs? For fintechs that offer virtual card services, an upward review in the limit on naira cards could potentially hurt their business. While more Nigerians have gotten comfortable with virtual cards, the questions of trust and security could convince them to switch back to naira cards. Odogwu argues that while onboarding is much easier with fintechs, unlike traditional banks, the latter remains ahead in terms of trust. “If you noticed what happened recently with the CBN revoking the licenses of over microfinance banks [some of which are fintechs], the reaction is that people are moving their money from fintechs—even those unaffected,” he said. But Dozie says only a few startups have built their business models solely on providing virtual cards. Instead, they are often available as part of a financial services offering. “We expect there will always be a niche and demand for virtual cards, and I do not see how the impacts of a unified exchange rate will disrupt or threaten businesses that offer or accept virtual cards,” he told TechCabal. Damilola Robert, a growth marketing manager at Bitnob, an African fintech that provides virtual dollar card services, notes that the question is really about what extra services fintechs can offer: “So if they [fintechs] are now competing about quality and products, then that means that they need to beef up their customer support system. The ability to leave a positive mark in people’s minds will determine how long they survive in the market because customers now have alternatives.” What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read More
3 ways to check NHIF status 2023
The National Hospital Insurance Fund (NHIF) is a government-run medical insurance scheme in Kenya. As a policyholder, it is crucial to stay informed about your NHIF status to ensure uninterrupted access to healthcare benefits. This guide will provide a step-by-step explanation of how to check your NHIF status in Kenya. Ways to check your NHIF status You can check your National Hospital Insurance Fund status by using the following methods: SMS and USSD NHIF Mobile App NHIF Website How to use SMS/USSD to check your NHIF status You can easily check your National Hospital Insurance Fund status or get your details by sending an SMS (text message) with the format: ID {space} Your ID Number] e.g. (ID 12345678) to 1550. For USSD, simply dial *155#, and follow the easy prompts. How to check your NHIF status using app/website Once you can navigate the National Hospital Insurance Fund website, you’ll easily navigate the app to check your status 1. Visit the National Hospital Insurance Fund website To begin the process of checking your status, you will need to access the National Hospital Insurance Fund official website. Open your preferred web browser and enter the following address: www.nhif.or.ke. This will take you to the NHIF homepage, where you can find various information related to the scheme. 2. Navigate to the ‘Self-care’ section On the NHIF homepage, look for the “Self Care” tab or link. Clicking on this tab will redirect you to a page that provides several options for self-service functionalities. These functionalities include checking your status, contributions, and claims, among others. Enter your ID number and click “get OTP”. 3. Check NHIF status Once you have successfully logged in to your National Hospital Insurance Fund account, navigate to the section that allows you to check your status. The exact location of this section may vary depending on the website’s design and updates. Look for options such as “Check Status,” “Membership Details,” or similar terms. Click on the appropriate link or button to access your NHIF status. Final thoughts on how to check your NHIF status Staying up to date with your National Hospital Insurance Fund status in Kenya is crucial for availing yourself of healthcare benefits. By following the step-by-step guide provided above, you can easily check your NHIF status online through the official NHIF website. Regularly checking your status ensures that you can enjoy uninterrupted access to the medical services covered by National Hospital Insurance Fund. Do you want to learn how to pay for NHIF using Mpesa? Read this.
Read More
Check TUT exam results 2023
Checking your Tshwane University of Technology (TUT) exam results is an important step towards tracking your academic progress. By following a few simple steps, you can easily access your results online. This guide will walk you through the process of checking your TUT exam results, ensuring that you stay informed about your academic performance. 1. Visit the TUT official website To check your exam results, start by opening your web browser and navigating to the official website of the Tshwane University of Technology. You can do this by entering the URL, “www.tut.ac.za,” into the address bar and pressing enter. This will take you to the TUT homepage, where you can access various resources related to your studies. 2. Navigate to the examination result portal Once you have reached the TUT homepage, look for the “Exam Results” table under the “Tools” section. Click on the link or button to access the TUT result portal, which serves as the gateway to your academic information to check your results. 3. Log in to the exam results portal On the results login page, enter your credentials, which usually include your student number and ITS PIN. Ensure that you enter the correct information to avoid any login issues. Then follow the on-screen instructions to complete the process. 4. Access your TUT exam results After accessing your exam results, take the time to review them carefully. You may find details such as your subject marks, overall grade, and any additional comments provided by your lecturers. If you wish to keep a physical copy, you can print your results using the print function of your web browser. That’s it about how to check your TUT results. Final thoughts on how to check TUT results Checking your TUT exam results is a straightforward process that can be completed through the TUT website. By following the steps outlined in this guide, you will be able to access your results and stay informed about your academic progress.
Read MoreKenya discontinues Huduma Namba, takes another try at digital identities
Kenya spent millions of dollars to roll out digital IDs named Huduma Namba. However, the project has since been discontinued, and the new government thinks it has a shot at rolling out similar digital IDs, but with additional features. To enhance the lives of its people, the Kenyan government is currently creating a new digital identification system. This system aims to offer citizens and residents a unique and easily verifiable digital identifier. By implementing this digital ID system, the government intends to boost service delivery and promote financial inclusion for all. As part of the initiative, Kenya is also developing a robust policy framework, which could be an amendment to the ICT Policy 2019 to ensure the proper utilisation and regulation of digital identities. This framework encompasses a set of principles and standards that govern the collection, storage, usage, and sharing of personal information, with the utmost emphasis on safeguarding individuals’ privacy and security. If the new Unique Personal Identifier (UPI) sounds familiar, you are not wrong because it is. The previous government attempted to launch digital IDs for Kenyans named Huduma Namba, also known as the National Integrated Identity Management System (NIIMS). However, the exercise was marred by court cases and overall distrust from Kenyans as the state failed to fully explain the merits of the IDs. This issue was also echoed by Kenya’s ICT and Digital Economy minister Eliud Owalo, who reiterated that Huduma Namba was never really explained to the people of Kenya in a past TV interview. “The Huduma Namba was a well-intended initiative, but the process of introducing it into the marketplace was wrong. Whenever you are introducing something new of that nature, you need to explain to Kenyans why it is imperative to introduce such an initiative. They need to understand what it entails, and you need to seek stakeholders’ views. And one of the important stakeholders is the Kenyan public,” said Eliud Owalo in an interview. Why it matters The UPI will be crucial throughout a child’s educational journey, serving as their primary and secondary school identification numbers. As the child grows and reaches the age of 18, the UPI seamlessly transitions into their official national identity number. Also, the UPI will have multi-faceted utility, serving as the child’s National Health Insurance Fund (NHIF) number, the National Social Security Fund (NSSF) number, driving license number, and ultimately, even their death certificate number. This robust integration will make the digital ID a central and unifying identifier for various essential aspects of a Kenyan’s life. It should also be remembered that the development means that Huduma Namba is no more. The project cost the previous government over KES 10 billion (over $72 million). It had issued the Huduma cards to Kenyans, but more than half of the registered Kenyans did not pick them up. Estonian ICT firms developed the technical parts of Huduma Namba. The European country, known for its robust ICT sector and popular apps such as Bolt, has since set an ICT base in Kenya, with the plan of working with local ICT firms. One of Estonia’s IT companies may also handle the new digital ID roll-out. Data protection The implementation of UPIs in digital ID systems carries risks such as privacy concerns, data breaches, and identity theft. In the case of identity theft, resolution mechanisms need to be established. Exclusion and discrimination based on personal characteristics may occur, and hacking and cyber attacks threaten sensitive data. Individuals without a UPI may be denied certain services since the government may make it a mandatory ID for all people, as it did with Huduma Namba.The Huduma Namba case highlights the complex issues surrounding digital IDs and privacy rights. While digital IDs have the potential to enhance government services and financial inclusion, concerns about privacy and security arise due to the collection and storage of personal information, an issue that could be addressed with the policy, as mentioned earlier, that is under development. Lastly, the court’s decision to require a Data Protection Impact Assessment shows the importance of addressing these concerns before implementing the system.
Read MoreHow Zambia is prepping to become Africa’s next major tech hub
A deep dive look at the state of Zambia’s tech ecosystem. Earlier this month, pan-African e-commerce startup Wasoko announced its entry into the Zambian market. Daniel Yu, founder and CEO of Wasoko, cited “high smartphone usage and a pro-business government administration keen on expanding the country’s digital economy” as the reason for setting up shop in the southern Africa nation. Wasoko is not the only tech company to recently set up shop in “Zed”, as the country is affectionately known by its 19 million inhabitants. Subscription video on-demand platform Wi-flix, technology infrastructure company Liquid Intelligent Technologies, crypto exchange VALR, and fintech unicorn Chipper Cash have all entered the Zambia market in the last year. So promising is the Zambia tech ecosystem that Vitalik Buterin, co-founder and inventor of Ethereum, the world’s second-largest cryptocurrency, has also expressed his support for its tech scene following a 2019 visit to the country and a virtual meeting with President Hichilema in 2022. Looking forward to seeing more blockchain and crypto projects make an impact in Zambia and in Africa more generally! Lots of work to be done in scalability, easy-to-use wallets and other important areas, but many unique opportunities as well. https://t.co/QL4bbWMbi2 — vitalik.eth (@VitalikButerin) March 29, 2022 So what are they doing differently in Zambia that is making a lot of technology companies want to do business there? Sandi Chimpala, a tech blogger and CEO of TechTrends, a Zambian tech publication, agrees with Yu that the presence of an enabling environment has been the driving factor to the growth of the country’s tech sector. “We’ve seen more of the government and other private sector stakeholders recognising the potential of technology in driving the country’s economic growth. Digitalisation initiatives, including e-governance on the part of the government, have really taken hold and although implementation is not always best, the effort is there,” Chimpala tells TechCabal on a call. Government’s role in creating an enabling environment for digital transformation When President Hakainde Hichilema delivered his maiden speech to the first session of the 13th National Assembly after assuming office in August 2021, he stated that his administration will mainstream digital revolution in national programmes in order to tap into the talents and creativity of Zambians. “Government is keen to support innovation and creativity especially, which offer home grown solutions across all sectors of the economy,” President Hakainde stated. Since then, the administration’s numerous digitalisation initiatives seem to be paying off dividends—setting up a Ministry of Technology and Science and implementation of policy measures to promote economic transformation especially in information and communication technology.. However, according to Zambia’s 2022 Inclusive Digital Economy Status report, produced in partnership with the UN Capital Development Fund (UNCDF), there is still much work to be done. The report indicates that the country has a digital divide of 47, meaning that 47% of Zambians are not digitally-included. While the gender digital divide stood at 34%, the rural digital divide—rural people without digital access—stood at 56%. To tackle this lack of inclusivity challenge head-on, much effort is being put into bringing underrepresented groups, including rural dwellers and children, into Zambia’s digital transformation journey. This is according to Jane Chinkisu, director of science and technology under the Ministry of Science and Technology. “There are currently active efforts currently ongoing to revamp our education system so that STEM skill sets are imparted to students at a young age. Additionally, we are also trying to improve ICT infrastructure in rural areas so that the people living there also have access to technology. All these efforts are to ensure that our people have technological prowess and that there is no skills gap which could promote a digital divide in the country,” said Chinkisu. Although the progress has been below the set targets, it has been there nonetheless. According to data by Digital Portal, Zambia’s internet penetration stood at 21%, a total of 4.3 million internet users. Internet users in the country increased by 115,000, a 3% increase between 2022 and 2023. Internet speeds in the country also increased quite significantly, with mobile internet connection speeds in Zambia rising by 25% and fixed internet connection speeds rising by 86%. Private sector playing its part Apart from the government’s efforts, there have also been intentional efforts from the country’s private sector players to support Zambia’s digitalisation agenda. In November last year, MTN launched the first 5G network in the country to accelerate internet speeds in the country. The mobile network operator also introduced “MTN Data Smart”, a program that is designed to help Zambians “learn more about what the internet has to offer and how best to use it to their advantage.” In April this year, Liquid Intelligent Technologies also entered into a memorandum of understanding (MoU) with the government of Zambia to provide connectivity to all Zambians through the launch of a new data centre “that will meet growing data-hosting demands from local businesses and hyperscalers.” The MOU also entailed the expansion of Liquid’s fibre network to connect more towns across the country, as well as the deployment of the physical infrastructure required to connect schools and clinics. Other private sector players in the countries, including Absa Bank, Stanbic Bank, Airtel, as well as Cellulant, to mention a few, have also played their part in providing support for initiatives that promote the digital transformation agenda in the country. According to Chinkisu, the role of the private sector in helping the government to achieve the country’s digital transformation mandate cannot be overstated enough and seeing its importance, a significant lot is being done by the government to uphold the current trend of the sector’s participation in digitalisation. “In terms of the private sector’s participation, we believe it is key in the country’s transformation and we are working on how to create incentives for them to continue their support. If the private sector continues to put up investments, we actually will be in a better place rather than the government struggling on its own,” she added. A startup
Read More
This platform wants to help SA creatives easily monetise their content. Here is how it works
This week, South African hip-hop star turned entertainment content entrepreneur Siyabonga Metane, popularly known as Slikour, launched United States of Creatives, a platform to help creatives digitally monetise their works. United States of Creatives, housed under the “Slikour On Life” digital entertainment content platform, comprises two core products: SOL Distro and SOL Wallet, which was designed to be an easy way for artists and creators to benefit monetarily from their fans’ support. TechCabal caught up with the multi-faceted Slikour to learn more about United States of Creatives, its mandate, more details about its suite of products, and how tech can help creatives make profit from their work. TechCabal: Please tell us more about the United States of Creatives platform. Slikour: The idea behind that was to create a digital ecosystem for artists to avail their creations to their fans who are the final consumer. The problem with artists is that we just create, but there is no centralised social transactional area for consumers to actually go and purchase and interact with these creations. How it works is that artists are now able to consolidate all the revenue on one platform, whether it’s merchandising, products, events, etc. They are also able to consolidate the revenue from the platform to build a financial profile. TC: Can you walk us through the United States of Creatives suite of products? Slikour: We have two core products which are Slikour On Life Distribution (SOL Distro) and Slikour On Life Wallet (SOL Wallet). SOL Distro is a distribution platform that allows artists to distribute their music to various streaming platforms. In addition to that, we have also written a book with a lawyer that helps artists with managing their publishing. Also, there is also financial information around helping artists invest in alternative vehicles like stocks and bonds. For that, we have a fund and asset management company guiding us to do that. The end goal here is to eventually allow artists to turn their creations into an asset management business. SOL Distro (Image source: Slikour On Life) SOL Wallet, on the other hand, is a fintech platform which allows fans using Mastercard cards to do ecommerce and point of sale purchases on the platform. Users are also able to send mobile money to other people or merchants that are also using the platform, as well as move funds from their bank cards into their SOL Wallet or SOL Mastercard. Fans can also buy tickets on the SOL Wallet and if the event owner has added the whole journey of drinks and merchandise, they can also pre-order their drinks and merchandise before they arrive at the event and just pick up instead of waiting in a line. SOL Wallet (Image source: Slikour On Life) In the long term, SOL Wallet will have what we call a “Creators Loan”, which will allow creators to get instant loans to cover gigs they do with corporates which usually pay between 60 to 90 days. SOL Creators Loans (Image source: Slikour On Life) Apart from those two products, event owners and promoters will also be able to sell multiple things on the platform, including merchandise, beverages, etc. Additionally, when you use our SOL MasterCard which is a virtual debit card, you get charged zero rates. TC: How is revenue split structured between the creators who will be using the platform and the platform itself? Slikour: In terms of SOL distro, the splits are the industry standard, which is 80% to the artist and 20% to the platform, unless under special instances in which we are willing to negotiate with the creator. For every other product on the product suite, we are going to charge the creators based on each transaction which happens via our platform. TC: United States of Creatives launched this week. From the traction that you have garnered so far, are you optimistic about the future of the product? Slikour: Of course! We never did this so we can fail and we’re going to make sure we make it work. Our motivation is that we are creating a solution for creatives. What we want to achieve is helping these creatives get the most value out of their work. TC: What role do you think technology platforms like United States of Creatives will play in growing the music industry in South Africa? Slikour: I think tech will only be as good as the needs of the times. We are building a platform which resonates with the needs of the time. Tech will always be key, just like anything else that answers the needs of the masses. This is not an idea that was built off of being intelligent or being smart. It really was built off the need. So going forward, technologies which really address the needs of consumers at a particular time period will be widely adopted. In return, these technologies would then help creatives to really extract the most value out of their work which is a win-win situation for all ecosystem players involved. *Interview has been edited for clarity and length. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read More