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August 7 2023

TechCabal Daily – Small changes at Big Cabal Media

In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning The Barbieheimer weekend is over, but f you’re looking for something interesting to watch in coming months, look no further: Muskerberg is coming. Billionaires Elon Musk and Mark Zuckerberg are still serious about their cage fight, and over the weekend, Musk announced that the fight will be live-streamed on Twitter X. We don’t know when the fight is scheduled for, but we can anticipate the biggest reality TV show since Survivor. In today’s edition BCM cuts its workforce by 19% South Africa considers licensing streaming platforms Ministerial nominee Bosun Tijani speaks on past tweets The future of Africa’s EV markets The World Wide Web3 Event: The Africa Social Impact Summit Job openings Layoffs BCM cuts its workforce by 19% BCM Leadership team in 2022 More layoffs are happening across the ecosystem. Last Friday, media startup Big Cabal Media—parent company to TechCabal and Zikoko—laid off 19% of its staff. Per the company, the layoffs are due to the harsh market conditions the business is facing this year. This comes a year after it raised $2.3 million to expand its digital products. The company reportedly grew its revenue by 180% year-on-year by the end of H1 2023, but this significant growth still did not match its budgetary expectations. Scaling down Citizen: The company also revealed that it is scaling down Zikoko Citizen, its new governance and politics publication which launched late last year. “In a different business environment, we intended for Citizen to have 12–18 months to figure out sustained revenue streams,” Big Cabal shared in company-wide communications. As a result of this, majority of the Citizen team were let go, while a few including EIC Akinyemi Muhammad were moved to other units within the company. The big picture: Affected employees will receive two months’ severance pay in lieu of notice. The company also shared that it will recommend the outgoing employees to other businesses, writing letters of recommendation and assisting during the transition period. In H2 2023, the company will focus on becoming a self-sustaining business, doubling down on TechCabal and TechCabal Insights. 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. Streaming South Africa considers licensing streaming platforms South Africa’s streaming service platform is getting bigger. And now, the South African government is considering licensing these platforms. Last week, the department of communications and digital technologies released a white paper that seeks to create broader regulations for streaming services in the country. Image source: Zikoko Memes Backstory: Last year, the country became the first African country to get Disney+, and one of the few African countries Uganda where AppleTV is available. This proliferation means that local streaming services like MultiChoice or eTV have seen their subscribers decline in recent times. In fact, MultiChoice—in June—reportedly lost over 100,000 subscribers, a loss it attributes to competition from streaming platforms like Netflix. While local streaming services face regulatory hurdles to operate in the country, international services have been exempted from obtaining a licence in the country. That could change soon. An unfair advantage: Per South Africa’s communications department, international streaming services have created an unfair playing field for everyone in the market. The white paper aims to establish a more comprehensive regulatory description encompassing all content services transmitted via electronic communications networks, such as fixed and mobile broadband networks, digital satellite broadcasting networks, and terrestrial distribution networks. The communications department proposes a fresh licensing framework in South Africa that distinguishes between linear and non-linear services while ensuring fair competition among various service providers, as outlined in the draft. 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. Ecosystem Bosun Tijani speaks on past tweets Last week, Nigeria’s tech ecosystem received a boost when Bosun Tijani, founder and CEO of CcHub, a long-standing accelerator, was nominated as the country’s new minister of communications and digital economy. Shortly after Tijani’s nomination, however, old tweets where the founder criticised the Nigerian government began to resurface. An expensive country? In one tweet from 2019, Tijani said, “‘Nigeria’ is a bloody expensive tag to have against your name. Leave patriotism for a minute – that tag is a bloody waste of energy. A second foreign passport isn’t sufficient to clean the ‘sin.’” At his ministerial screening on Saturday, the founder was quizzed by senators at the Nigerian parliament. Tijani at the Ministerial screening Tijani’s response was that taken alone, the tweets did not paint the entire picture. For instance, he shared that he made the tweet about Nigeria being an expensive tag after an incident at the Chinese Embassy because of his Nigerian passport. “I am a patriotic Nigerian. “I believe so much in this country and I won’t do anything to undermine the integrity of this country,” he said. “The tweets online don’t represent me at all. As a young man born and bred by Yoruba parents, tender my sincere apology. I am profusely sorry.” Senate President Godswill Akpabio accepted the apology on behalf of the Senate after some Senators spoke in Tijani’s defence citing his impressive credentials. The tech ecosystem has also rallied in support of Tijani with several key players like Andela founder Iyin Aboyeji, ex-CEO of Printivo Oluyomi Ojo, and Lifebank CEO Temie Giwa-Tubosun tweeting in support of the founder. At this time, Tijani, who also apologised for the tweets, is yet to be confirmed as the minister. TC Insights The future of Africa’s EV market Electric mobility in Africa is still in its development stage. Although the sales of electric vehicles (EVs) on the continent have

August 7 2023

Next wave: Providing liftoff for Tunisia’s tech talent

Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner TopBanner_END–> First published 6 August 2023 In Tunisia, raw talent and a tight-knit community of builders, entrepreneurs and tech workers could create Africa’s axis for deep tech. But not before a few important and urgent changes. This is the third edition of our ecosystem reviews on Next Wave. Read #1 and #2. It is 1:34 a.m. in Kigali and I am reading the New York Times profile of Morris Chang, founder of Taiwan Semiconductor Manufacturing Company (TSMC) which is today, the world’s leading fab (maker) of nanoscopic transistors etched into silicon wafers. I am also typing out (some of) the words you are reading for this edition of Next Wave. Reading Morris’ profile puts me in the right headspace for today’s ecosystem review of the small African nation nestled between Algeria, Libya and the Mediterranean Sea–Tunisia. With almost 5,000 students registered, Tunisia has the most number of student members in the Europe, Middle East and Africa region of the Institute of Electrical and Electronics Engineers. That is a stunning 1900 increase from 2011 when the country had only 263 student members. By total membership, Tunisia is the only African country in the Top 10 ranking of IEEE chapters in the EMEA region. IEEE membership numbers do not necessarily mean technology prowess. Israel has a total of 1,300 members (including students). But Tunisia’s numerical representation in the IEEE is a useful proxy for discerning how seriously the country takes STEM education. What’s more? It’s a proxy I like. “Everybody knows everybody” This concentration of talent is not new. In the last 40 years, manufacturing formed the basis of the Tunisia’s GDP growth. From subcontracted operations for labour-intensive, low-value-added manufacturing for European companies, Tunisian firms have moved up the value chain into segments such as aeronautic component manufacturing. Several multinationals such as Benetton and Airbus tapped the country’s base of skilled engineers and opened wholly-owned production plants in the country, analysts at Oxford Business write. With almost half of Tunisia’s manufacturing destined for overseas markets, the country’s globally oriented production focus has not been in doubt. Tunisia’s small, but growing tight-knit ecosystem is built around this concentration of technology talent. And as a technology ecosystem takes shape, this massing of engineers, developers and other academics are beginning to coalesce into an entrepreneurial force of its own. There are not many African countries where there is a dedicated effort to connect technology ecosystems with academic and research institutions, but Open Startup Tunisia is a shining example of this startup-academic bridge in action. Co-working spaces dot the city. One of them, The Dot, is a veritable watering hole for the tech workers, founders, investors and venture builders working in Tunis. <!–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 In 2018, Tunisia famously passed the first Startup Act in Africa, leading to a scramble to pass startup laws in other African countries, including Senegal, Nigeria, Rwanda, Kenya and South Africa. New incubators, accelerators and startup labs have been born since 2016 to help catalyse entrepreneurial growth from the natural tech advantage. While investments into Tunisian startups have increased, especially following the passage of the Startup Act in 2018 and the further surge in global venture investments in the last five years, Tunisia has not realised the expected boom from its concentration of tech talent, research institutions and growing entrepreneurial ambition. Tunisia has talent. Its government just needs to help them fly—mostly by getting out of the way—and supporting entrepreneurs to recreate the successes of the country’s auto-industry in the startup scene. Show me the money Everyone I spoke to last week for this piece, described a variant of the need for and lack of funding opportunities as one of the primary challenges Tunisia’s startup ecosystem has to deal with. True, the Startup Act of 2018 successfully spurred technology entrepreneurship. Especially as it offered a full-year stipend for up to three co-founders in any startup accepted into the programme. But the government capital only went so far. It provided the seed, but an accompanying full liberalisation of the market in order to create an enabling environment for scaling locally domiciled startups is yet to happen. One of the results is an abundance of early-stage startups, with working products and some traction, but not enough liftoff power to overcome gravity. A secondary effect of this is the easy out—a proliferation of marketplace applications hoping to grow enough to find viability outside of Tunisia and into Gulf countries. There has been unmistakeable progress in Tunisia’s ecosystem growth. But it is far from the potential of the ecosystem that produced InstaDeep and Expensya. Infographic: Ayomide Agbaje for TC Insights While InstaDeep’s exit brought a lot of attention to Tunisia, it was not sufficient to spur investment into startups domiciled in Tunisia. If anything, it probably demonstrated the benefit of building technology with global market reach. As Yassir Idrissi, former Careem entrepreneur and co-founder of the Egyptian food supply startup Nomu, told Al-Monitor earlier this year, “The [InstaDeep] exit is a step in the right direction but not really a game-changer in itself,” adding, “It could have been, but the market is so difficult that it will continue to drive investors away.” Partner Message Hey! It’s money here , and I am tired of working for you. Why don’t you try working with me, so you can save and invest in dollars and access the best rates on your investments? 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August 5 2023

Bosun Tijani apologises for past tweets during ministerial screening

During his ministerial screening on Saturday, Bosun Tijani, the CEO and co-founder of CcHub, apologised over some controversial tweets he made in the past. His apology has raised questions on the right of citizens to be critical of the government because of future political ambitions. Bosun Tijani, the CEO and co-founder of CcHub, apologised for some tweets he made in the past during his appearance before the Nigerian Senate for screening as a ministerial nominee on Saturday. Tijani’s nomination has excited many in the tech ecosystem given that he leads one of the most influential tech incubators on the continent. But just as the news broke, some of his critical tweets about Nigeria’s politics and politicians resurfaced. Some of the senators quizzed Tijani about these tweets during his screening. “Nigeria is a bloody expensive tag,” read one of the tweets, cited by Senator Abdulfatai Buhari who is representing Oyo North Senatorial District. Tijani’s response was that taken alone, the tweets did not paint the entire picture. For instance, he shared that he made the tweet about Nigeria being an expensive tag after an incident at the Chinese Embassy because of his Nigerian passport. “I am a patriotic Nigerian. “I believe so much in this country and I won’t do anything to undermine the integrity of this country,” he said. “The tweets online don’t represent me at all. As a young man born and bred by Yoruba parents, tender my sincere apology. I am profusely sorry.” Senate President Godswill Akpabio accepted the apology on behalf of the Senate after some Senators spoke in Tijani’s defense citing his impressive credentials. In his earlier remarks, Tijani thanked President Bola Tinubu for nominating him to serve in a “crucial capacity”. The chances are that he will likely serve as the Minister of Communications and Digital Economy—a big win for the Nigerian tech ecosystem that has long clamoured to have one of its own at the table. “Many of the prosperous nations that we admire have been built on a strong foundation of innovation. We are blessed as a nation with a signiﬁcant young population which is a critical resource for harnessing the opportunities oﬀered by Technology and Innovation in support of Mr. President’s stated goal of building a prosperous Nigeria for all,” the CCHub boss said. The censure question While Tijani’s apology might ensure that he’ll scale the ministerial screening, the Senate’s decision to question him over his past tweets will raise questions about censure. On one hand, many argue that his tweets were a reflection of the frustration of the average Nigerian about the state of the polity and the leaders. They also argue that such criticism shouldn’t be considered to represent unpatriotism. In the end, the argument is pretty straightforward: when critics are offered a chance to serve in the government, they should be judged by their competence and pedigree—and not their critical opinions.

August 5 2023

Banks are winning the opportunity to facilitate cross-border payments for Africa’s small businesses

Small and medium businesses in Africa sell to and depend on imports from suppliers in other countries to meet their local production, sales or reexport goals. This significant trade flow between African countries and between Africa’s top trading partners globally may well be an overlooked opportunity for business payment facilitation. In 2017, Nigeria’s central bank opened a special facility to provide up to $20,000 per quarter for small and medium businesses who struggled to access the forex they needed to finance imports. Similarly, last year, small-scale importers in Kenya were hit hard by a scarcity of forex that forced banks to impose $1500 to $2000 daily limits. Despite these setbacks, a significant percentage of small businesses in Africa that sell to or buy from international suppliers still prefer local banking partners. This is according to a recently published report by Duplo, a Nigerian business payments automation firm. In countries like Kenya, Ghana and Nigeria, small businesses may source for foreign currency at parallel markets, but they may still have to settle vendor invoices by bank wires or electronic transfers. While Duplo’s report does not offer insight into the value of cross-border business payments, a cursory look at import-export numbers provides a snapshot of the value of cross-border transactions at the small business level. For example, roughly 90% of all manufacturing companies in Nigeria are small businesses. In the last 3 months of 2022, for example, Nigerian businesses sold N5.3 billion ($7 million) worth of shoes, umbrellas, sunshades and headgear to other countries, data from the Nigerian Bureau of Statistics shows. In the same 3-month period, Nigerian businesses (and individuals) imported more than N25 billion worth of shoes, umbrellas, sunshades and headgear. That is the rough equivalent of $33.6 million at prevailing parallel rates in December. Both figures only represent 0.02 and 0.10 of Nigerian exports and imports in the last quarter of 2022, but they also represent a snapshot of the value of cross-border transactions made by businesses (mostly small and medium businesses) in Africa’s largest economy. Banks are still the preferred business payments partner of African SMEs Of more than 1200 businesses surveyed in Nigeria, Ghana, Kenya and South Africa, 61% engage in cross-border payments. Almost half (48.4%) of these businesses pay their foreign suppliers and vendors through local banking partners. Only 19.5% of surveyed businesses make cross-border payments with fintech solutions. In all countries, banks are the preferred payment channel for cross-border transactions, by a significant margin. In Nigeria, Ghana and Kenya, fintech platforms come second—a consequence perhaps of the foreign exchange pressures the three economies have come under in recent years. But it also signifies how quickly cross–border payments on fintech apps have grown and overtaken the bureau-de-change and offshore banking channels. What fintechs can learn from banks While banks dominate, they have also failed to translate the benefits of their scale across the multiple African markets they operate in. Capital controls and onerous rules sometimes mean that the owner of a United Bank for Africa bank account in Nigeria, for example, cannot make payments or withdrawals to that account in another UBA branch in Kenya—even if they wanted to make those payments in foreign currency. UBA has branches in at least 20 African countries. These sorts of barriers have not allowed pan–African banks like Ecobank, for example, to benefit from their scale across Africa. Duplo says businesses may prefer banking partners because of existing business relationships and trust in traditional banking systems. If this is the case, it shows how banks have been able to leverage their local primary business relationships with small businesses to manage cross-border payment transactions. That playbook is something African fintechs may want to explore. Fintechs usually focus on local business banking or providing cross-border payment services. The lesson from banks is that providing only one of the two services may be too narrow of a focus. They cannot do this quickly enough. Access Bank, Nigeria’s largest lender by assets is strategically growing it’s presence in Africa. And it has a retinue of fintechs in tow. Including a majority stake in eTranzact, a leading payments provider with operations in operations in Nigeria, Ghana, Kenya, Zimbabwe, South Africa, Cote d’Ivoire, and the UK.

August 5 2023

Noiseless headphones over noiseless earbuds

In today’s fast-paced world, earbuds and headphones have become a ubiquitous part of our lives. We use them to enjoy music, take calls, and immerse ourselves in podcasts and audiobooks. While they provide convenience and entertainment, you may want to favour headphones over earbuds. One of the most significant dangers of earbuds and headphones is the potential for noise-induced hearing loss (NIHL). The World Health Organization estimates that over one billion teenagers and young adults are at risk of developing hearing loss due to unsafe listening practices, and these small devices contribute to the problem. Listening at high volumes for extended periods can damage the delicate hair cells in the inner ear responsible for transmitting sound to the brain. Particularly, the proximity of earbuds to the eardrum makes them risky. Unlike headphones that rest over the ears, earbuds sit directly inside the ear canal, increasing the risk of causing more damage at lower volumes. Users tend to compensate for background noise by turning up the volume, leading to even greater risks of hearing damage. Another hazard of using earbuds is the potential for ear infections. By placing them in our ears frequently, we introduce the possibility of carrying bacteria into our ears, leading to irritation, inflammation, and infections in the ear canal. Key benefits of headphones over earbuds 6 benefits of noise-cancelling headphones over noise-cancelling earbuds: 1. Comfort Noise-cancelling headphones typically have larger ear cups that provide more comfort and less ear fatigue during extended use compared to earbuds. 2. Sound quality Headphones usually have larger drivers, resulting in better sound quality and a more immersive listening experience than ear-buds. 3. Noise Isolation Over-ear headphones offer better passive noise isolation by covering the entire ear, reducing external noises even without active noise cancellation. 4. Battery life Due to their larger size, noise-cancelling headphones can accommodate larger batteries, leading to longer battery life compared to earbuds. 5. Durability Headphones tend to be more robust and durable due to their construction, making them more suitable for frequent use and travel. Earbuds can easily fall off and get lost. 6. Customization Some noise-cancelling headphones come with adjustable settings, allowing users to customize the level of noise cancellation according to their preferences. Final thoughts on noiseless headphones over noiseless earbuds Keep in mind that personal preferences and use cases may vary, and both noise-cancelling headphones and ear-buds have their unique advantages based on individual needs. Nevertheless, by understanding the risks associated with these devices and adopting safe listening practices, we can keep enjoying our favourite audio content while safeguarding our precious sense of hearing.

August 5 2023

Kenya suspends Worldcoin

Lire en français Read this email in French. Editor’s Note Week 32, 2023 Read time: 5 minutes Happy new month Here is your weekly update on Africa’s tech ecosystem! We value your feedback, so please take this quick 3-minute survey to tell us how we can make TC Weekender even more exciting for you. Pamela Tetteh Editor, TechCabal. Editor’s Picks Kenya suspends Worldcoin’s operations The Kenyan government has suspended Worldcoin, a crypto project which is offering Kenyans tokens worth about $54 or KES 7,000 in exchange for their eye scans. Learn more. Senegal shuts down its internet again Once again, the Senegalese government has shut down access to the internet. If this feels like like déjà vu, it is probably because this happened twice in June. They hve also banned a really popular social media platform this time. Learn more. Nigeria really banned Binance Nigeria’s Securities Exchange Commission (SEC) has clarified that the crypto exchange it banned is the Binance we all know, and not an entity called “Binance Nigeria Limited.” Learn more. Y Combinator bets on food delivery again There are three African startups in Y Combinator’s summer 2023 class. One of them, ChowCentral, a food-delivery startup in Nigeria, extends Y Combinator’s bet on food delivery in Africa. Learn more. Event: Africa Social Impact Summit This August, join key players and leaders across the African private and public sectors, the government, donor and civil society communities, as they discuss policy-shaping ideas and new impact investing strategies for Africa at the 2nd edition of the Africa Social Impact Summit. Save your seat here. Anonymous Sudan attacks Nigeria Anonymous Sudan, a pro-Sudan hacktivist group, is claiming responsibility for cyberattacks on MTN Nigeria and Nigeria’s National Information Technology Development Agency (NITDA). Learn more. Big Cabal Media lays off workers Big Cabal Media, the parent company of TechCabal, Zikoko and Citizen, has cut its workforce by 19% across its business units. Learn more. GSK exits Nigeria Global pharma and biotech company GlaxoSmithKline (GSK) announced its exit from Nigeria after 51 years of operations in the company. Learn more. Flutterwave’s $end Mobile rebrands to Send App Payments company Flutterwave has rebranded its $end Mobile product to Send App, and has has expanded its recipient countries to include Egypt and Sénégal. Read more. Who brought the money this week? Nigerian health tech company Remedial Health raised $12 million in Series A funding in a round co-led by QED Investors and Ventures Platform. Traction, a Nigerian-based fintech company, secured $6 million in a seed round; the round was led by Pan-African investor Ventures Platform and Multiply Partners; other participating investors included P1 Ventures and other investors. Emtech a Pan-African fintech company, raised $4 million in seed round. What else to read this weekend? Tanzania ignores digital IDs as East Africa pushes for wider adoption Seven months after its launch, CBN’s fintech sandbox has made no real progress Gender inequality is obstructing Ghana’s path to a larger digital economy EXCLUSIVE: Zambia is ready to be Africa’s next major tech hub, says tech minister Written by: Ngozi Chukwu Edited by: Pamela Tetteh 18, Nnobi Street, Surulere, Lagos, Nigeria Unsubscribe from TC Weekender

August 5 2023

How to check Airtel data balance 2023

The USSD codes for all network providers were recently consolidated. So here’s a step-by-step guide on how to currently check Airtel data balance: Step 1: Unlock your phone and open the phone’s dialer or calling app. Step 2: Dial the USSD code to check your Airtel data balance. The USSD code for Airtel data balance is *323#. Step 3: After dialling the USSD code, press the call button. Step 4: You will see a pop-up message or a menu with various options on your screen. Select the option that corresponds to checking your data balance. Usually, it will be something like “Check Data Balance,” “Data Balance,” or “My Data.” Step 5: Wait for a few seconds while the system processes your request. Airtel will send you an SMS message containing your remaining data balance and its validity period. Step 6: Once you receive the SMS, open it to view the details. The SMS will typically display the remaining data in MB or GB, as well as the expiration date of your current data plan. Step 7: If you want more detailed information about your data usage, such as the amount of data consumed during specific periods or the data usage on specific apps, you can also use the Airtel mobile app or visit the Airtel self-care portal on their website. Download the Airtel app from your phone’s app store and log in with your Airtel number to access this information. Step 8: If you encounter any issues while checking your data balance or if the USSD code doesn’t work, you can contact Airtel customer support for assistance. Dial 300 from your Airtel number to reach customer support or visit an Airtel store near you. Step 9: Keep in mind that your data balance may vary depending on your current data plan and any additional data packs or offers you might have activated. To ensure accurate information, it’s essential to check your data balance regularly. Step 10: That’s it! You have successfully checked your Airtel data balance using the USSD code or the Airtel app.

August 4 2023

Data: Digital payment is having its best year in Nigeria

Image source: Ayomide Agbaje/TechCabal Insights Digital payments in Nigeria have had an extraordinary decade. It’s been 14 years since the Nigerian Inter-Bank Settlement Scheme (NIBSS) first introduced a real-time electronic payment system — the NIBSS Instant Payment (NIP). NIP supports fast transactions across different channels, this includes mobile apps, web/internet banking, USSD, ATM transfers, point-of-sale (POS), or in-person banking. Although NIBSS is not the only company providing instant payments across these channels, it is the largest, thanks to the scale of its real-time infrastructure which ranks among the most sophisticated in the world. NIP has supercharged how banking works, and for the first seven years, banks led the innovation and adoption of payment platforms for different use cases. But in the later years, younger companies, startups emerged. This nimble bunch is quickly becoming strategic players in the market as their urge to grow deepens consumer payments adoption beyond the realm banks understood or were interested in. And the dividends are paying off. NIBSS data from January to May shows 2023 is going to be the best year for digital payments. 818.4 million: the average number of times Nigerians did a digital transfer each month so far in 2023 More people are using real-time payments than ever before. Payments volume — the number of times people made a digital transaction — has ballooned over the last few years. In 2016, Nigerians completed 154.5 million digital payments, representing an annual average of 12.9 million transactions per month. By the end of 2022, average monthly transfers stacked up to 427.8 million as payments volume topped 5.1 billion. A 2022 report by payments firm, ACI and GlobalData, suggests that Nigerian real-time payments will top 8.9 billion transactions by 2027. But that projection was based on last year’s growth rates when the average monthly volume stood at 428 million transactions. Data from the first five months of 2023 shows there have already been 4.1 billion payments, representing a monthly average of 818.4 million transfers. TechCabal Insights projects NIBSS, even with a conservative growth rate, will top 9.7 billion transactions by the end of the year, almost double the figure from 2022. Nigerian payments value could surge past “a quadrillion naira” in the next few years Payment value is surging dramatically, NIBSS data shows. The sum total of naira transfers stood at ₦38.2 trillion in 2016. At the end of 2022, it had recorded a staggering 913.4% growth to ₦387.1 trillion. But far more interesting is how fast it has accelerated in recent months. Transaction activity for just the first five months of 2023 is ₦211.1 trillion and we’re still far from the peak period of December. Growth assumptions are tricky, but historically, the annual average growth rate has hovered in the low single digits (under 5%) except in 2020 when it moved at 8.4%. TechCabal Insights believes 2023 will be another year with abnormally high growth, as we project the total payment value will surpass ₦580 trillion. And in a few more years, we’ll see the word “quadrillion” tossed around more frequently as the industry accelerates. Lower average transaction amount In 2016, during NIP’s early years, the average Nigerian customer sent ₦247,337, highlighting that fewer people used real-time payments and a majority of transactions were large volume amounts. By the end of 2022, the average transfer declined significantly to just ₦75,393. This is a good signal. A lower average transfer amount suggests greater adoption as more people embrace electronic payments for mundane transfers. The downward trend will continue in 2023. Average transfers are down to ₦51,592. That’s a good sign. The lower it drops, the higher the penetration of digital payments. NIBSS revenue Although NIBSS is a for-profit government-backed entity, its revenue is not public. But its business model is fairly straightforward. NIBSS charges a fee for every real-time transaction that goes through its platform. That fee used to be ₦50, but it has crashed to ₦3.75. And according to the World Bank, NIP accounts for 70% of all NIBSS payment activity. So if that’s true, then it’s fairly straightforward to calculate its revenue in the digital payments business: just multiply NIBSS payment volume by ₦3.75. This basic math shows revenue of ₦25.6 billion in 2022 when it is charged ₦5/transfer. Data for the first five months of 2023 suggest it has locked in revenue of ₦20.5 billion already and could double this figure by the end of the year. NIBSS continues to fuel easy money for Nigerian banks who tend to reduce charges only when instructed by the central bank. While the above charts show how embedded digital payments have become in Nigerian society, Q1 2023 reminded TechCabal Insights that the industry is still vulnerable to several notable weaknesses and these challenges represent major problems in the long run. Our latest State of Tech in Africa report (Q2 2023) is available for download here. Also subscribe to In A Giffy, our data-driven newsletter making sense of Africa’s digital economy with actionable insights.

August 4 2023

Amidst a challenging operating environment, Big Cabal Media reduces workforce by 19%

Big Cabal Media, the parent company of TechCabal, Zikoko and Citizen, has cut its workforce by 19% across its business units. The company said the cuts are unrelated to specific performance issues within those units but cited harsh market conditions despite significant progress made this year. Across three publications, Big Cabal Media grew audiences, delivered excellent editorial content and covered the Nigerian elections in real-time. It also delivered Hertitude, an event that drew over 2,200 women to one of the most exciting festivals in the country. In the first half of 2023, Big Cabal saw record numbers across legacy publications and increased resonance and prominence with audiences for its relatively newer publications. Per internal communication, Big Cabal grew revenue by 180% year-on-year by the end of H1, significant growth that still did not match its budgetary expectations. Despite its progress, the company still had to deal with global and national economic realities: a funding downturn across the continent and a Nigerian economic slowdown caused by a botched currency redesign and elections. June’s currency devaluation also changed revenue projections for many Nigerian venture-backed startups. In a note to outgoing employees, Tomiwa Aladekomo, Big Cabal’s CEO, said, “I’d like to thank you all for your stellar work at Big Cabal. Our work has real impact and value, and I’m proud of the incredible people who make it happen. Today’s decision isn’t pleasant, but those leaving us can take pride in their work and their impact. For those of us who remain, know that we are as committed as ever to building one of the most important media businesses on the continent. That mission continues, and you can be proud to contribute to it.” According to Big Cabal, everyone affected by today’s cuts will receive their salaries for August and September. An excerpt of internal communication to staff said, “This is a challenging decision in a year that has tested us immeasurably, and we empathize with the talented employees affected by this decision. For those leaving, we appreciate the hours and backbreaking work you’ve put in to move our mission forward.” One of the most significant effects of the workforce cuts is the downscaling of Citizen, the company’s relatively new publication on governance and politics. “In a different business environment, we intended for Citizen to have 12-18 months to figure out sustained revenue streams,” Big Cabal shared in company-wide communications. As part of efforts to soften the impact of the cuts, some team members will be moved to units with a strategic business focus for H2. Big Cabal will also recommend the outgoing employees to other businesses, writing letters of recommendation and assisting during the transition period. Big Cabal will renew its focus on becoming a more efficient and self-sustaining business by 2024. It will double down on TechCabal and TechCabal insights while building a stronger commercial base for Zikoko.

August 4 2023

New steps to check SRD appeal status 2023

The Social Relief of Distress (SRD) program in South Africa is designed to provide temporary assistance to individuals facing financial hardships. However, there are instances when applications for SRD might be declined, leading to an appeal process. If you have applied for SRD and want to check the status of your appeal, this article will guide you through the steps to do so. 1. Understand the SRD Appeal process before you initiate status check Before checking the status of your SRD appeal, it’s essential to understand the appeal process. After receiving a rejection, you have the right to appeal the decision within a specified period. The appeal process allows you to submit additional documentation or provide clarifications to support your eligibility for the SRD grant. 2. Gather your reference number To check the status of your SRD appeal, you will need your reference number, which was provided to you during the appeal submission process. This unique identifier is crucial in tracking the progress of your appeal. 3. Visit the official website To check your SRD appeal status, visit the official website of the South African Social Security Agency (SASSA) at www.sassa.gov.za. Look for the “SRD Appeal Status” section or a similar option on the website. 4. Log in to your account Once you find the appropriate section, you may need to log in to your account using your registered credentials. 5. Check SRD Appeal status After logging in, locate the section specifically dedicated to SRD appeals. Enter your reference number in the provided space and submit the request to check the status of your appeal. The system should then display the current status of your SRD appeal. 6. Contact SASSA helpline If you encounter any difficulties while trying to check your appeal status online, you can contact the SASSA helplines for assistance. Their contact information can usually be found on the official SASSA website. Their hotline is: 012 312 7727. 7. Keep checking and exercise patience The SRD appeal process might take some time due to the volume of appeals received and the verification process. It’s crucial to be patient while waiting for the status update. Final thoughts on srd appeal status check Navigating the SRD appeal process in South Africa can be overwhelming, especially when you’re in dire need of financial assistance. However, understanding the steps involved and being able to check the status of your appeal online can provide some relief during this challenging time. Remember to keep your reference number handy and utilise the official SASSA website for accurate and up-to-date information regarding your SRD appeal status.