- July 31 2023
Bolt pulls ₦6,000 daily bonus for drivers ahead of impending strike action in Lagos
Bolt reportedly rescinded a ₦6,000 daily bonus introduced in June as drivers prepare for another strike over costs. At least two drivers from the Amalgamated Union of App-based Transport Workers of Nigeria (AUATWON) told TechCabal that Bolt has discontinued a ₦6,000 daily bonus introduced in June. The bonus was added in June after drivers went on strike to ask Bolt and Uber to increase base fares. The removal of fuel subsidies doubled fuel prices, reducing already thin margins for drivers. Ride-hailing companies eventually raised base fares by around 25% with concerns that anything more would reduce demand. Bolt’s concession was a ₦6,000 daily bonus for drivers meeting specific work goals. Yet, removing the bonus is only a minor talking point ahead of a planned strike by the drivers and Nigeria’s Labour Congress tomorrow. According to the drivers, “Some drivers parked their cars. Everyone is going through a hard time.” The National treasurer for the Union, Comrade Jolaiya Moses, told TechCabal that this was not the first time. “They did it to discourage drivers from joining the strike. The bonus is not part of our argument. It was a gimmick.” A source in the union said the bonus was a way to attract drivers to use Bolt’s platform. Bolt did not respond to a request for comment at the time of publishing this article. Supporting the NLC While the NLC did not join AUATWON’s June 7 strike because of a court injunction, Moses and Ayoade said AUATWON is affiliated to the trade unions. So as the Nigeria Labour Congress gains momentum ahead of their strike tomorrow, AUATWON has vowed to support them. NLC’s strike will try to get the government to reverse its stance on removing fuel subsidies. AUATWON’s leaders say that its members are the most affected by the high fuel prices. They also stressed that they are still seeking a 10% reduction of the commissions and possible conversion of their vehicles to CNG to counter the cost of fuel.
Read More- July 31 2023
Senegal’s government suspends internet again to “prevent disturbances”
The government has shut down Senegal’s internet again after an internet shutdown in June and the awarding of a 5G licence two weeks ago, following Friday’s arrest of opposition leader, Ousmane Sonko. Citing a need to prevent disturbances to public order, Senegal’s government has shut down the internet. In a statement signed by Moussa Bocar Thiam, the minister of Communications, telecommunications, and Digital Economy, and shared on Twitter, telephone operators were required to comply with the shutdown. “Due to the dissemination of hateful and subversive messages relayed on social media in a context of disturbance to public order, the internet’s mobile data is temporarily suspended during certain time slots from Monday, July 31, 2023,” the statement read. Ousmane Sonko, a popular opposition leader was arrested last Friday. In early June, the government shut down Senegal’s internet following the arrest of Sonko. According to data from Cloudflare Radar, a hub that showcases global internet traffic, internet usage in Senegal dropped by 37% from the previous day and had dropped to near zero for some telcos. This is the second time the government has shut down the internet in two months. According to some estimates, the country lost $300,000 per hour due to the June shutdown. Since the 2011 Arab Spring, internet shutdowns have become a frequent way governments have sought to establish control. Last year, seven African countries imposed shutdowns nine times, a significant decrease from 2021, when 12 countries disrupted the internet 19 times. This shutdown comes after the government awarded the country’s first 5G licence two weeks ago. Sonatel, a telco company, outbid its competitors with a XOF34.5 billion ($59.1 million) bid—12 times the second-highest bidder to win the licence. Although the licence was provisional, it hinted that the government was willing to move away from a restrictive position. But today’s shutdown has shown that not to be true.
Read More- July 31 2023
Olu Akanmu steps down as Opay Nigeria boss after two years
Olu Akanmu announced on Monday morning that he is stepping down as the president and co-CEO of Opay Nigeria after two years. It remains to be seen what his next steps will be. Olu Akanmu has stepped down from his role as the president and co-CEO of OPay Nigeria, according to a statement published on his Twitter page on Monday morning. Akanmu, a veteran industry professional and former executive director at FCMB, joined the Nigerian division of the Chinese-backed fintech in November 2021. Under his watch, Opay saw impressive growth during Nigeria’s cash crunch, thanks to its distribution strategies and infrastructure. The company claimed to have 30 million registered users as of April this year. “My gratitude to all my colleagues at Opay for the good work we did together in deepening financial inclusion in Nigeria, ensuring that less and less number of our people are left behind in partaking out of the opportunities of the digital financial system. Many thanks also to all our ecosystem partners and enablers who complimented us, without which we would not have been able to deliver on the lofty mission of OPay which is to ‘deepen financial inclusion through technology’,” Akanmu wrote in the statement. Despite Opay’s win, Akanmu said in his statement that more work needs to be done collectively by stakeholders to ensure that the modern digital financial system leaves no one behind. “Collaborations, public-private partnerships, and more deliberate coordination at the digital public infrastructure, ecosystem layers, would be critical to ensure we succeed in doing the next heavy lifting to extend the digital financial rail to the next 20 million,” he said. However, it remains to be seen what his next steps will be.
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- July 31 2023
Next Wave: Kenya has an opportunity to provide regional leadership
Cet article est aussi disponible en français <!– In partnership with –> First published 30 July 2023 How many cities on earth have natural forest reserves occupying almost a quarter of the city area and are still entirely within city bounds? Not too many. Only one city on the planet—and perhaps the universe—fits the bill. Nairobi. The vast 117km2 grassland sitting only a few miles away from Nairobi’s central business district is not only a tourist attraction, but it is also the inspiration for the popular moniker for Kenya’s technology ecosystem—Silicon Savannah. This is the second part of a series of ecosystem essays reviewing what often goes unspoken as a smorgasbord of private sector entrepreneurs, business angels and venture capitalists, and government attempt to cultivate unique identities around technology and innovation. If you missed last week’s email you can read the web version here and subscribe (if you’re not yet subscribed) so you don’t miss it. Small tip + why you should subscribe. For next week’s review, we’ll look at what makes Tunis, the capital of Tunisia unique as an ecosystem. For this week, step with me into Kenya, the poster child of African tech innovation for the last 15 years. Like last week, today’s review is structured on three pillars. Today’s review is structured on three pillars. What Nairobi’s ecosystem has going for it. What it does not have going for it that can be fixed. And suggestions for where to start. <!–Chart section 1 Naira-USD spreads have narrowed dramatically following FX policy reforms and the removal of Nigeria’s unorthodox central bank governor, Godwin Emefiele. | Chart: Ayomide Agbaje — TechCabal Insights. Chart end–> Partner Message Download the latest Smile ID State of KYC in Africa report on the most recent trends in identity verification across Africa, highlighting the power of biometric verification and document verification in combating fraud. It is a must-read for any business looking to acquire users across Africa and keep up with fraud trends. Download report here A Ngong Road story In 2012 when Kenya’s technology ecosystem began to etch itself into the global consciousness, a vibrant community of software developers, researchers and entrepreneurs had been working out of a cluster of coworking spaces on (or close to) Ngong Road, near the Kilimani neighbourhood of Nairobi. iHub, Nailab and Gearbox, and a placement campus for Andela, were all located in this part of Nairobi. Because these incubators, coworking spaces and startups were at the centre of what was seen as Kenya’s technology boom, the story of Kenya’s technology ecosystem tends to focus on them. But the Ngong road story begins in Mombasa before the internet became as common as it is today. The unofficial Ngong Road Map. Photo rights, Kwasi Gachie via Code for Africa. The country’s early technology pioneers were the entrepreneurs who fought Telkom for the right to create local internet exchange points (IXPs) to reduce the cost and latency of sending internet packets over VoIP locally. This was in the late 1990s to mid 2000s when Jambonet, Telkom Kenya’s backbone service was the only internet gateway in Kenya. The liberalisation of the internet data business plus new undersea cable landings in Mombasa, thanks to the efforts of Bitange Ndemo, then a permanent secretary at Kenya’s ministry of information and communication, helped enable early internet businesses and create the first crop of internet entrepreneurs like Ken Njoroge and Bolaji Akinboro of Cellulant. This cross-country linkage (internet–wise) between Nairobi at the centre of Kenya, and Mombasa on the coast, still drives part of Nairobi’s technology ecosystem appeal. At the very least, it’s what enables the growing data centre and internet service industry, and indirectly contributes to why multinational technology companies like Oracle, IBM, Cisco and others set up regional offices in Nairobi. A solid internet infrastructure base also means better consumer access to and use of technology. This is invaluable for consumer tech startups, digital service businesses and Kenya’s large base of freelance digital service providers. In the earlier stages, Kenya’s technology industry represented an outgrowth of the development and aid agencies concentrated in Nairobi. But it is slowly transitioning into a key player in the tech support service market globally. In addition to this, Kenya’s relatively long history of tech entrepreneurship in political and business environments that were not always friendly to upstarts. And a fairly large pool of potential customers (both business users and to a smaller extent, individual consumers), represent the key strength of Nairobi’s ecosystem. That’s interesting because the technology ecosystem in Kenya got its start on the back of technical support for development partners, aid agencies and a local growing financial services market. Many of the early entrepreneurs, whether the ones who started coworking spaces on Ngong road, Nairobi, the ones who can retell stories from the early telco and ISP wars, or the private equity funded businesspeople manning the data centre and internet service infrastructure industry owe their survival to this key market—at least in the early days. What is key to note is that this legacy industry has difused throughout the ecosystem at the enterprise level, but not enough at the early-stage startup level. Unlike say, a Nigeria where a quite a few battle-harded enterprise operators are the face of technology upstarts. This is not to say there are not cross-sector experienced operators playing significant roles in Kenya’s startup ecosystem. There are many. Just as a few of the early startuppers have crossed to enterprise companies. A good example is of course, Juliana Rotich, one of the co-founders of Ushahidi, who now leads Safaricom’s fintech division. Shaking off the M-Pesa halo “M-Pesa is part of the lure that brings the idea of Silicon Savannah to life,” Mark Kaigwa, a Partner at Affrinovator once told Tom Jackson, publisher of Disrupt Africa. That lure has grown old. The way I see it, Safaricom understands this. At least that is how I interpret the launch of a “super app” in 2021, followed by an ambitious Ethiopian entry which (according to
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- July 31 2023
TechCabal Daily – Kenya’s Finance Act is free
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Uganda has joined the big leagues. Last week, MTN launched the country’s first 5G network. For now, the service is not everywhere Ugandans go; it is only available around the Lugogo Mall in Kampala, the city’s capital, but MTN plans to roll it out to the rest of the capital city by the end of 2024. In today’s edition MTN Nigeria’s profit slumps by 29.1% in H1 Kenya’s Finance Act is free Safaricom to invest in Kenyan startups Funding African civic tech The World Wide Web3 Event: NITDA CO-Create West Africa Tech Week Opportunities Telecoms MTN Nigeria’s profits slump by 29.1% in H1 African telecoms are taking a beating, and Nigeria’s shaky forex market is all to blame. Last week, Airtel Africa reported a $151 million loss in Q1 2023, a pale comparison to the $178 million profit after tax it made during the same period in 2022. The telecom cited the currency devaluation in Nigeria as the culprit. Now, MTN Nigeria is reporting something similar. While this telecom reported ₦128 billion ($165 million) in profit for H1 2023, it is at least 29.14% shy of the ₦181 billion ($234 million) it recorded in H1 2022. What went wrong? Per MTN Nigeria’s CEO Karl Toriola, it’s all due to the policy changes Nigeria has experienced in the first half of the year. Karl Toriola, MTN Nigeria CEO Since he came into power in May 2022, President Bola Ahmed Tinubu has removed the country’s long-standing fuel subsidy and floated the naira to create a unified foreign exchange rate. Toriola notes that these actions have created “additional financial burdens” for MTN users in the short term. There’s still growth though: Despite its significant reduction in profits, the telecom still recorded growth in other areas. It reportedly gained 1.5 million new subscribers in H1, taking its total tally to over 77 million subscribers. Its services revenue grew by 21.6%, driven by voice revenue growth of 12.1% and data revenue growth of 34.9%. Active mobile money (MoMo PSB) wallets also grew by 1.1 million in H1 to 3.1 million. Zoom out: MTN is not everywhere we go out of the woods yet. The telecoms stressed that unrealised forex losses included in its net finance charges affected the telco, adding that there was no impact on EBITDA due to the quarterly nature of its tower contracts. However, it expects a full impact by the end of H2. Secure payments with Monnify Monnify has simplified how businesses accept payments to enable growth. We are trusted by Piggyvest, Buypower, Wakanow, Fairmoney, Cowrywise, and over 10,000 Nigerian businesses. Get your Monnify account today here. Legislation Kenya’s Finance Act is free But the country’s taxpayers won’t be. On Friday, the Kenyan Court of Appeal lifted an earlier court order barring the implementation of Kenya’s new Finance Act. Image source: Zikoko Memes ICYMI: In June, three senators filed a petition to a Kenyan high court, challenging the constitutionality of the Finance Act 2023. The Finance Act 2023, which is designed to generate revenue for the government, introduces several new taxes, including a 1.5% tax on content creators and a 3% tax on crypto traders. The senators argued that the Act was passed without due process and that the 1.5% housing levy which the Act mandates employers and employees to pay, is unconstitutional because the Constitution limits the national government’s role in housing to developing a housing policy. Implementation of the Act was suspended in June, and on July 10, another court extended the freeze order, barring the implementation of the Act. And now? Well, the order has been lifted and the Kenyan treasury can now enforce it. The Court of Appeal lifted the order after Treasury Cabinet Secretary Prof Njuguna Ndung’u argued that the country was losing Ksh500 million ($3.5 million) for every day the Act was not being enforced. Per the secretary, Kenya’s budget for the financial year of 2023/24—about Ksh2.9 trillion ($20.4 billion)—is heavily dependent on the taxes which the Act provides. Kenya was reportedly set to generate Ksh 211 billion ($1.4 billion) with the implementation of the Act. The judges of the appeal court therefore lifted the freeze order, in order to allow the country to move forward with its projects. The big picture: It’s not over yet though. The judges have stated that the courts may consider suspending specific provisions of the Act, as opposed to the entire Act, if the provisions had irreversible effects. For provisions without permanent effects, the courts urged members of the public to file for overpaid taxes and get refunded. Discover Trends with Smile Identity Download the Smile ID State of KYC in Africa Report on the latest trends in identity verification across Africa, highlighting the power of biometric verification and document verification in combating fraud. It is a must-read for any business looking to acquire users across Africa and keep up with fraud trends. Funding Safaricom establishes two new subsidiaries for funding From left, Chief Finance Officer, Dilip Pal, CEO, Safaricom PLC, Peter Ndegwa, Chairman, Safaricom PLC, Adil Arshed Khawaja (MBS) and Safaricom PLC, Company Secretary Kathryne Maundu during Safaricom’s AGM held at MJC. Safaricom is looking to push some of its funds into Kenya’s budding ecosystem. Last week, the telecom revealed its plans to enter into the venture capital space by setting up two new subsidiaries, plans that were subject to its shareholders’ approval. On Friday, after the company’s annual general meeting, the company confirmed that its shareholders had approved the plans. Growth and seed-stage startups get a boost: The telecom has now set up two new entities that will invest in startups: one in seed-stage startups, and another in growth-stage startups. The seed-stage subsidiary will complement Safaricom’s already existing million-dollar fund, Spark Fund, which launched in 2014 to invest in early-stage startups in Kenya. The second, the growth-stage subsidiary, will invest in well-established startups that will be key to accelerating Safaricom’s journey
Read More- July 30 2023
Awaiting President Tinubu’s Final Cabinet Selections: A Silver Lining Amidst Missed Opportunities
An in-depth assessment of the significance of President Asiwaju Bola Ahmed Tinubu’s pending cabinet selections in steering Nigeria out of its economic quagmire. Few political figures in Nigeria have demonstrated the same aptitude for identifying and nurturing capable technocrats as President Asiwaju Bola Ahmed Tinubu. His time as the Governor of Lagos State attests to his strategic leadership, defined by a cabinet filled with proficient technocrats that brought about transformative changes. However, in his current presidential tenure, the choices he has made for his cabinet thus far have caused considerable concern among political analysts and citizens alike. This worry is not unfounded given the severe economic downturn Nigeria is grappling with. A Critical Evaluation of the Current Cabinet Selection At a juncture when Nigeria’s economic stability hangs in the balance, the necessity for a cabinet that breeds confidence and showcases a willingness to tackle prevailing economic challenges is imperative. Regrettably, the president’s selections so far for key cabinet positions have not fulfilled these expectations. The crux of the concern rests in the perceived deficiency of the kind of innovative, seasoned, and battle-tested technocrats capable of addressing the multifaceted economic issues Nigeria is currently facing. From soaring inflation rates and high unemployment to unsettling insecurity issues, the country requires leaders who can engineer strategic policies and foster an environment conducive for economic recovery and growth. The current cabinet, as it stands, lacks the necessary depth and breadth in expertise and experience to mount a robust response to these challenges. President Tinubu’s Cabinet Appointments: An Opportunity for Course Correction Despite the disappointment stemming from the initial cabinet picks, there lies a silver lining. As President Tinubu rounds up his cabinet selection, the upcoming appointments offer a window of opportunity to amend the course. These final selections could provide a chance to introduce more competent technocrats into the cabinet and compensate for the initial misses. A buoyant and sustainable economy requires stewardship from leaders armed with proven track records in their respective fields. To steer Nigeria towards a prosperous future, technocrats with innovative ideas are needed. They can devise strategies to stimulate economic growth, foster job creation, and magnetize foreign investments – essential elements in navigating the current economic turbulence. The Way Forward: What Should We Expect? As President Tinubu gears up to announce his final cabinet picks, there is a palpable hope that he takes into account the concerns raised and the precarious economic state of the nation. The weight of these decisions is enormous, for they will determine the course Nigeria takes in the coming years. It is hoped that the President will heed the call to involve experienced technocrats who can inspire confidence, both domestically and internationally. Their innovative perspectives and knowledge could play an instrumental role in crafting strategic policies to tackle Nigeria’s economic challenges head-on. Conclusion: A Make-or-Break Moment Throughout his political journey, President Asiwaju Bola Ahmed Tinubu has shown an impressive ability to pick and empower capable technocrats. However, his recent cabinet picks have raised questions about his long-standing reputation in this regard. Now, with Nigeria’s economic future at stake and only a few cabinet slots remaining, the President faces a make-or-break moment. The anticipation is high, and the nation watches with bated breath, hoping that the forthcoming selections will rectify the earlier missteps and create a cabinet capable of guiding Nigeria towards a stable and prosperous economic future. This is not just about maintaining a legacy, but more importantly, about securing the welfare and future of millions of Nigerians.
Read More- July 29 2023
Cellulant is betting on Nigeria’s small and mid-sized merchants. Will it pay off?
Cellulant’s new Nigeria country manager has one job, to grow Cellulant’s share of Nigeria’s large payments market with a combination of mobile and card payments. In a market where mobile PoS devices rule, the Kenyan company is hoping to turn a crack in the wall into a den it can dominate. In February this year, Ibrahim Aminu was appointed Cellulant’s new general manager for Nigeria. The former general manager for VigiPay, a Venture Garden Group company, boasts experience that includes time at a pharmaceutical company, an oil and gas firm, two Nigerian banks and one of Nigeria’s oldest fintechs, Interswitch. When he joined Cellulant, one of Kenya’s oldest payments firms to lead its Nigerian business, the company announcement described his role as providing “leadership as Cellulant expands coverage for Tingg, Cellulant’s Digital Payments platform, across Nigeria.” Cellulant has always served big merchants. Airlines, banks and other fintechs as an aggregator. But Tingg, originally Mula, was the company’s foray into directly offering consumers a way to pay merchants from a single app. The offerings were typical. Airtime top-up, utility token purchases and satellite TV subscriptions. Launched in 2017—the same period when the agent network business was near its crest—Cellulant also began to roll out an agent network to support Mula’s smartphone app experience. Mula quickly became synonymous with bill payments. Two years later, in 2019, Cellulant rebranded the service to Tingg. While Cellulant focused on its traditional business of collecting payments for big merchants like airlines, Tingg was to become a payments super app uniting bill payments, remittances, lending, group investments, and food and gas orders in one app across (then) eight markets in Africa. These days, Tingg is none of these things. It suspended its agency banking business. And in 2022, Cellulant’s CEO, Akshay Grover told TechCabal that his company wanted to enable smaller merchants to collect digital payments. The new goal was to add 50,000 small merchants in a year. And Tingg was the arrowhead. With a streamlined focus on enabling digital payments for smaller merchants, Tingg grew quickly. Between September 2022 and February 2023, InStore, a product that allowed small merchants to accept payments from multiple channels grew by 200% in Nigeria alone Growing this segment is a key focus of Aminu, the new country manager in Nigeria. Already Instore is used by several mid-sized businesses including quick-service restaurant chains. At last count, Tingg was being used in 400 stores in Nigeria. “The SMBs (small and medium businesses) still handle a lot of cash today as it is and there is a big opportunity [there] as we see it,” Aminu told TechCabal earlier in June. Nigeria’s infamous cash ban policy was a boon, Aminu admitted. “There is now an urgency for businesses to start accepting payments digitally,” he added. But the same policy wave that lifted Cellulant, did the same for the competition. In particular, Opay, Moniepoint and Palmpay. All three offer point-of-sale devices for card payments as well as bank transfers. In addition, all three also have strong agent banking networks that run mostly Cash-In-Cash-Out operations. Tingg’s edge lies in its razor focus on targeting small merchants that are big enough to be worth the hassle. The core of its offering is a promise to deliver smoother offline acquiring without the hardware where possible. As a result, it does not have to deal with the hassle of managing a CICO-oriented agent banking network. Nigeria’s agent banking operators have said they will increase the charges they collect from customers seeking to make deposits or withdrawals. This could drive customers away from CICO agent networks to more bank transfers and mobile phone-based payments. For now, this is only conjecture. Consumer habits die hard and Nigerians love withdrawing cash on demand. “Yes, competition would exist but we pride ourselves on the service we are able to offer our customers and our ability to deepen that relationship,” Aminu concedes.
Read More- July 29 2023
MTN Nigeria’s profit slumps by 29.14% in H1 2023 over inflation, forex concerns
Like its telco counterpart, Airtel Africa, MTN Nigeria’s books have taken a beating in its profits for the half year ended June 30, 2023. MTN’s CEO cites the challenging environment, inflation and naira devaluation as the reason for a slump in its results. According to a financial statement published on the Nigerian Exchange Group (NGX), MTN Nigeria has reported a drop in its H1 result in 2023— January 1 to June 30, 2023. MTN reported a 29.14% decline in its profit for the period under review of ₦128 billion, compared to ₦181 billion during the same period in 2022. Conversely, the telco’s revenue grew by 21.96% to ₦1.15 trillion in H1 2023, compared to ₦950 billion in the same period in 2022. Commenting on the financial performance, MTN Nigeria’s CEO, Karl Toriola, stated that operating conditions in the first half of 2023 remained challenging with energy, food, and general inflation at elevated levels. This was due to the ongoing adverse global macroeconomic and geopolitical environment, the cash shortages experienced in Q1, forex volatility and supply chain uncertainties witnessed during the period. “Following the inauguration of President Bola Ahmed Tinubu in May 2023, swift reforms were implemented to remove the fuel subsidy and liberalise foreign exchange management, to bolster investor confidence and drive growth and investment in Nigeria. These policy reforms are expected to be positive for the economy in the medium to long term. However, in the short term, they have created additional financial burdens on consumers and businesses, and these will be fully reflected in the pressures on our margins in H2,” Toriola said. Toriola explained that MTN had robust commercial and financial performances in H1 and would continue to invest in the business to further improve the quality of their delivery. The MTN boss said H1 helped the telco gain 1.5 million new subscribers, taking its total tally to over 77 million subscribers. Already the firm prioritised enhancing the capacity and coverage of its 4G and 5G networks. According to its CEO, 4G traffic constituted 82.5% of its total data traffic while 5G constituted 21% on all 5G-colocated clusters. In all of the wins, higher energy prices and rising costs impacted growth. “Our margins were impacted by higher energy prices and rising costs, but the impact was moderated by provisions in our tower contracts and the timing of the forex harmonisation. Notwithstanding, we will continue to execute our commercial strategy with a focus on unlocking efficiencies and driving operating leverage to support growth in earnings, cash flow, and returns over the medium term,” the report read. It stressed that unrealised forex losses included in its net finance charges affected the telco, adding that there was no impact on EBITDA due to the quarterly nature of its tower contracts. However, it expects full impact by the end of H2. Mobile services The telco’s financial statement also reported that its services revenue grew by 21.6%, driven by voice revenue growth of 12.1% and data revenue growth of 34.9%. Active mobile money (MoMo PSB) wallets grew by 1.1 million in H1 to 3.1 million. Currently, its total number of registered MoMo PSB wallets is now over 22 million, powered by 227,000 MoMo agents, and 38,000 merchants in its ecosystem. TechCabal had recently reported that the MoMo service still requires more adoption. Nonetheless, its data customers saw a 11.5% increase to 41 million and a 52.2% increase in Ayoba subscribers to 7.2 million. Outlook The group looks to prioritise three things: its network, MoMo PSB, and the acceleration of 4G, 5G and rural coverage to expand their network base. It stressed that the outlook for the full year 2023 will depend on the impacts of the levels of the exchange rate and the new VAT on tower leases effective September 2023. “The extent of these factors remains the key nearer-term risk to our medium-term guidance,” the report read.
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- July 29 2023
Copia lays off staff for the third time
Lire en français Read this email in French. Editor’s Note Week 31, 2023 Read time: 5 minutes Hello This week, we bring you updates from Kenya, Nigeria, and Senegal. By the way, have you had a chance to complete our quick 3-minute survey yet? If not, we’d really appreciate it if you could spare a few moments to do so. Pamela Tetteh Editor, TechCabal. Editor’s Picks Copia lays off staff for the third time Copia, a Kenyan e-commerce platform, has laid off 25%—350 members of its workforce. This is the third time this year that Copia has trimmed its headcount. Learn more. CBN retraces its steps Nigeria’s central bank unfroze 440 bank accounts of some companies that it previously accused of “illegally trading” in foreign exchange. This includes tech startups like BetNaija, RiseVest, Bamboo, Chaka, and Yellow Card. Learn more. Flutterwave accounts remain frozen in Kenya This week, Judge Nixon Sifuna of the Kenyan High Court refused a request from Kenya’s Asset Recovery Agency (ARA) to drop their case against Flutterwave. Learn more. Hackers unveil themselves A pro-Russian hacktivist group called Anonymous Sudan claimed responsibility for a series of Distributed Denial-of-Service (DDoS) attacks on websites of Kenyan media, hospitals, universities, and businesses, including Safaricom. Learn more. Entering Tech Interested in getting tech career resources and insights?. Then sign up for Entering Tech to get started! Starlink launches in Kenya Namibia has given its official seal of approval to crypto exchanges by introducing the groundbreaking Namibia Virtual Assets Act 2023. Learn more. Freelancers to pay taxes in Kenya The Kenyan government now mandates that Upwork collect and remit Value-Added Tax (VAT) on goods and services, including freelancer services. Learn more. Sonatel acquires 5G licence Telecomms company Sonatel—Orange Senegal—has acquired 5G licence in Senegal. Learn more. Airtel Africa loses $151 million Airtel Africa has reported a loss after tax in its Q1—April 1 to June 30, 2023 results. Read more. Who brought the money this week? Kenyan agritech company Farm Works raised $4.1 million in pre-series A funding. The round was led by Acumen Resilient Agriculture Fund, other participating investors included Livelihood Impact Fund, Vested World, a number of family offices, and angel investors. Clafiya, a Nigerian health-tech company, secured $610,000 in pre-seed funding from Norrsken Accelerator, Acquired Wisdom Fund (AWF), Hustle Fund, Voltron Capital, Microtraction, Ajim Capital, and other investors. Kenyan health-tech company, Zuri Health, raised an undisclosed funding round from Five35 Ventures. What else to read this weekend? Eden Life is experimenting with affordable fast-food delivery Inside Kasha’s mission to revolutionise healthcare in Africa How to fix the Nigerian economy according to the World Bank M-PESA is launching in Ethiopia, but will it stand a chance against Telebirr? Written by: Ngozi Chukwu Edited by: Pamela Tetteh 18, Nnobi Street, Surulere, Lagos, Nigeria Unsubscribe from TC Weekender
Read More- July 28 2023
Safaricom shareholders approve two startup investment subsidiaries
Safaricom has established two new subsidiaries to invest in tech startups in Kenya. The subsidiaries will focus on seed-stage and growth-stage startups – and they have not replaced Spark Fund, launched eight years ago. Safaricom disclosed a plan to enter the venture capital space a few days ago. The Kenyan telco hinted at establishing two new subsidiaries to identify and invest in tech startups in Kenya. It revealed plans to inject capital into startups as a significant part of its next growth frontier. These subsidiaries have officially been created following a consensus at Safaricom’s 15th shareholders’ annual general meeting held today. In a statement, Safaricom CEO Peter Ndegwa said, “We are committed to empowering the tech ecosystem in Kenya and beyond, and this strategic move will enable us to broaden our investments, embracing both seed-stage and growth-stage start-ups. Incorporating these subsidiaries is pivotal to realising Safaricom’s purpose to become a purpose-led technology company.” Seed-stage investment subsidiary Safaricom has set up a company limited by guarantee to invest in seed-stage startups. This complements the existing Spark Fund, an investment entity governed by a board of trustees, which empowers and nurtures start-ups in Kenya. The new entity is expected to streamline administrative processes and enhance governance, further supporting young entrepreneurs. At first, Safaricom didn’t mention what would happen to Spark Fund. Launched in 2014, the fund has backed numerous startups, such as Sendy, iProcure, Eneza Education, and Ajua, while receiving applications from over 200 other startups. Spark Fund fosters the successful development and expansion of promising mobile tech startups in Kenya and offers investment, business development support, and technical assistance to local and up-and-coming startups. With the launch of the new subsidiary, it is clear that it will work hand in hand with Spark Fund to identify and finance promising seed-stage startups. “We will be looking to invest in and support early-stage companies, especially in emerging technologies such as analytics, Machine Learning, Artificial Intelligence, and the Internet of Things. We will be launching the call for applications in the coming weeks,” said Ndegwa. Growth-stage investment subsidiary This new subsidiary will have a clear mandate: to invest in well-established startups that will be key to accelerating Safaricom’s journey toward becoming a ‘purpose-led tech company by 2025,’ as per the telco’s CEO. Not only that, but this entity will also serve as the primary investment platform for all strategic investments carried out by Safaricom. Adil Khawaja, Chairman of the Board, said, “We thank our shareholders for their unwavering support in establishing the new subsidiaries. By investing in tech entrepreneurs and initiatives aligning with our strategic mission, we aim to continue transforming lives by connecting people, opportunities, and information while driving innovation, creating value, and leaving a lasting impact on society.” Dividend payout Finally, Safaricom shareholders have approved a final dividend of KES 0.62 per ordinary share, bringing the total dividend for the year to KES 1.20 per share. The interim dividend of KES 0.58 per share, approved in February 2023, amounted to KES 23.24 billion ($163.4 million). The final dividend of KES 0.62 per share will amount to KES 24.84 billion ($174.6 million), bringing the total dividend payout for the year to KES 48.08 billion ($338 million).
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