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August 3 2023

TechCabal Daily – Weirdcoin

In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Nigeria’s tech ecosystem found a ray of hope last night. Bosun Tijani, founder and CEO of pan-African incubator CcHub, was nominated as the country’s new minister of communications and digital economy. It’s not set in stone yet, but if he’s approved, the ecosystem will have one of its own leading the policy development and innovation in the tech space, and yes, that includes the implementation of the Nigeria Startup Act! Let’s keep our fingers crossed! In today’s edition Kenya suspends Worldcoin Safaricom has a new BNPL product Flutterwave’s $end rebrands to Send app Remedial Health raises $12 million The World Wide Web3 Event: Get early-bird tickets for the Moonshot Conference Opportunities Crypto Kenya suspends Worldcoin Kenya’s interior ministry has suspended the operations of Worldcoin, a blockchain product which requires users to scan and register their eyeballs. The parent company of Worldcoin, Tools for Humanity, is a registered data processor in the country, but the ministry says it needs to investigate the authenticity and legality of its activities. Image source: Odhiambo Ogola (@PhilipOgola) ICYMI: Worldcoin launched In Kenya and 26 other countries to collect the iris scans of people. The Worldcoin project has been popular in Kenya, with long queues forming at several scanning venues. Participants receive 25 Worldcoin tokens (WLD) as compensation, and several crypto exchanges are present at the venues to convert the digital tokens into local currency. Currently, in Kenya, the 25 tokens are worth Ksh7,000 ($50). So far over 350,000 Kenyans have queued up to get scanned. Why does Worldcoin need this data anyway? Worldcoin’s parent company, Tools for Humanity, says it wants to protect humans from impersonation by AI bots. Interestingly the founder of popular chat or ChatGPT, Sam Altman, is one of the founders of Worldcoin. Since each individual’s iris data is unique, the scanned iris data will be registered on the blockchain, creating a unique identity that can serve as proof that the user is a human being. These scans will then form digital identities, serving as a KYC to access essential financial services. Bright red flags: Globally, there’s quite a buzz about the motive behind this blockchain-based and AI-fighting digital passport project. Before it launched, the project was accused of taking more data than what it disclosed to users. The founder of the Ethereum blockchain, Vitalik Buretin, still holds that opinion and other privacy concerns about the project. In Africa, there are questions about why they are creating such an ID in countries where AI and blockchain tech aren’t yet part of everyday life. 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. Fintech Safaricom and Craft Silicon launch BNPL products in Kenya Kenyan telecom Safaricom and software development company, Craft Silicon, have launched similar products in the Kenyan market: Faraja and SpotIt. Faraja, which is a partnership between Safaricom and financial services firm EDOMx, is a Buy Now Pay Later (BNPL) product, while SpotIt is setting itself apart from Faraja as a “Get Now Pay Later (GNPL)” product. Both products are similar but have different terms and target customers. Craft Silicon CEO Kamal Budhabhatti (R) during the launch of SpotIt Safaricom’s Faraja: Faraja empowers businesses to grow their sales by enabling their customers to buy now and pay later. The product has been in development for over a year and was launched a few days ago after approval from the Central Bank of Kenya (CBK). Customers can make purchases ranging from Ksh20 ($0.14) to Ksh100,000 ($703) without any interest fee, and have a 30-day period to repay the loan. Faraja’s services, however, are limited to Kenya, so customers cannot use it for international purchases. Craft Silicon’s SpotIt: SpotIt presents consumers with the chance to engage in credit-oriented shopping, followed by the option to gradually repay their loans through instalments. Unlike Faraja, SpotIt allows customers to create virtual cards for international purchases and payments. The credit limits are determined based on the customer’s credit score, a parameter evaluated by the bank that serves as the gateway to SpotIt. For customers who choose to acquire products on credit via SpotIt, the repayment schedule spans a span of six to twelve months. SpotIt is revolutionising BPNL services in Africa: Unlike other BNPL services, SpotIt is a mini app integrated into existing banking apps rather than a standalone service. So far, the model has approximately 30–40 merchants. Craft Silicon has also partnered with four banks, including NCBA, to integrate SpotIt as a mini app, and others like Equity Bank are expected to join soon. 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. Fintech Flutterwave’s $end Mobile rebrands to Send App GIF Source: Tenor Payments company Flutterwave has rebranded its $end Mobile product to Send App. When it initially launched in 2021, Send App enabled payments to various countries, including the UK, EU, Nigeria, and other African countries. With the recent update, the app has expanded its recipient countries to include Egypt and Sénégal. Additionally, users in the US and Canada can now send money through the app to other countries. The product also got a new look and is available for download on Android and iOS. Zoom out: This news comes after Flutterwave launched Tuition, a product that enables Africans to make quick payments of school fees to educational institutions abroad. Healthtech Remedial Health raises $12 million in Series A funding round Remedial Health Founders Samuel Okwuada and Victor Benjamin Remedial Health, a Nigerian health tech startup is remedying Nigeria’s drug counterfeit problem. The health tech startup secured

August 2 2023

Access to credit financing for PPMVs in Nigeria

Image source: The Guardian Nigeria Patent and proprietary medicine vendors (PPMVs) are known as individuals without formal pharmacy training who sell orthodox pharmaceutical products on a retail basis for profit. They are often the primary healthcare providers for a significant portion of the Nigerian population, especially in rural areas where access to formal healthcare facilities is limited. These vendors offer various services, including treatment for malaria and diarrhea and family planning services. There are a number of challenges facing PPMVs. However, given the informal nature of their business, limited access to credit remains one of the most pressing issues. Financial institutions often hesitate to extend credit to PPMVs due to perceived risks, lack of collateral, and limited credit histories, hindering their ability to expand their businesses and invest in essential resources. Charity Ukwo Abah, deputy director of the enterprise development and promotion department at Small and Medium Enterprises Development Agency of Nigeria (SMEDAN), emphasized the significance of access to sustainable financing schemes for PPMVs to expand their businesses and offer a wider range of quality medications. “Empowering PPMVs with access to credit financing is essential for their growth and ability to provide improved healthcare services to the communities they serve. This will lead to better healthcare outcomes for Nigerians, especially those in underserved areas,“ Mrs Abah said during a TechCabal Live event held in partnership with Solina Group that discussed the role of technology in enhancing access to credit for PPMVs. The event had in attendance key stakeholders in the health sector interested in strengthening health inclusion in Nigeria. “PPMVs play a critical role in delivering healthcare services, but their effectiveness is hampered by challenges such as counterfeit medications and lack of clear regulatory frameworks, Emeka Okafor, project director at IntregratE, said. “By working together with regulatory bodies and pharmaceutical companies, we can strengthen PPMVs’ capabilities and enhance access to quality healthcare for all citizens,” he added. He also highlighted the need for improved regulation and collaborations with pharmaceutical companies to build a more robust and inclusive healthcare system. According to industry leaders, it is crucial for financial institutions to integrate technology in providing credit to PPMVs. Technology can be used to build a digital credit scoring system specifically for PPMVs. This will provide access to relevant data such as sales performance, customer feedback, and inventory which will help financial institutions better assess the creditworthiness of these vendors. This data-driven approach will enable lenders to make informed decisions, reducing perceived risks and facilitating access to much-needed financing. This, in turn, will empower PPMVs to expand their businesses and improve healthcare services nationwide.

August 2 2023

Breaking: Bosun Tijani nominated for ministerial position in Tinubu’s cabinet

Bosun Tijani, the CEO and co-founder of CcHub, a pan-African tech incubator, has been unveiled as a ministerial nominee for President Tinubu’s administration. Earlier today, Senate President Godswill Akpabio shared 19 more ministerial nominees submitted by President Bola Tinubu’s administration. For stakeholders in Nigeria’s tech ecosystem, one name struck a chord, Bosun Tijani, the CEO and co-founder of CcHub, one of the most influential incubators on the continent. Tijani is the only name on the list from within Nigeria’s tech ecosystem, suggesting that he is being nominated for the Minister of Communications and Digital Economy role. TechCabal had earlier reported that four names were being considered for key roles in Tinubu’s administration, especially as the President had focused on Nigeria’s tech ecosystem during his campaign. Bosun Tijani, Oswald Osaretin Guobadia, Olumide Soyombo, and Idris Alubankudi Saliu were the names TechCabal reported to be in the running for the ministerial position. However, only Tijani’s name has appeared on the list. Tijani’s nomination is a break from the norm of civil servants and career politicians being appointed as the minister responsible for Nigeria’s budding tech ecosystem. For the tech ecosystem, it means a seat at the table and some support from the government in building an even bigger ecosystem. Just as Nigeria’s Startup Act had shown that the government was willing to consult with the ecosystem, this nomination shows a continuation of that policy. Bosun Tijani’s profile Tijani holds two degrees from the University of Jos, Nigeria: a Bsc. in Economics and a Diploma in Computer Science. He subsequently obtained an MSc. in Information Systems and Management from the Warwick Business School in England. In March this year, Tijani completed a PhD program in Innovation and Economic Development at the University of Leicester. He has led the expansion of CcHub across Nigeria, Kenya, and more recently, Namibia. From its humble beginnings in Yaba, CcHub has grown to become a significant catalyst of tech advancement in Africa by empowering young people with the tools, communities and capital they need to launch impactful ventures. With a billion naira growth fund, CcHub has committed to impacting over 95 early-stage businesses including those bringing innovation to Africa’s education and healthcare systems. In 2017, New Africa Magazine named Tijani as one of the 100 most influential people in Africa. Exclusive: Tinubu eyes Nigeria’s tech experts for key roles

August 2 2023

This YC-backed startup wants to be the “Amazon” for second-hand smartphones

Eze, a YC-backed B2B marketplace, is connecting retail stores dealing in second-hand smartphones and electronics with global electronics manufacturers and suppliers. In June, the startup raised $3.7 million in an oversubscribed seed round. For over two years, Joshua Nzewi and David Iya ran a smartphone wholesale business in the U.S. and decided to begin shipping second-hand devices outside their base. But they soon realised deeper issues that plagued the second-hand smartphone market, especially in Nigeria, where the duo originally hail from. Thousands of retailers in Nigeria sell refurbished smartphones shipped from other countries and sold in markets like Computer Village in Lagos. But these retailers deal with problems such as logistics, limited supply, pricing uncertainty as well as payment and trust issues. So in 2020, Nzewi and Iya founded Eze, a B2B marketplace that connects global ma suppliers with retailers dealing in second-hand smartphones and electronics such as laptops, tablets, wearables, and other devices. “Think of us as eBay or Amazon or even like a Jumia. A buyer comes to our platform and sees all the different prices for several devices and makes a bid. If the seller accepts the offer, payment is made and the transaction is done,” Nzewi told TechCabal over a call. Eze takes a cut from each transaction done on the platform. According to Nzewi, the YC-backed startup has sold over 500,000 devices since its launch in early 2021 and built a presence in over 15 countries including the United States and Nigeria, its biggest market. He claimed over 50 businesses in Computer Village are currently registered on the platform. Though devices listed on Eze are priced in dollars, Eze offers currency conversion: buyers can pay in their local currency including naira while sellers are paid in their settlement currency. Nzewi added that Eze has a fintech subsidiary currently available in the United States, Eze Capital designed to help businesses in the smartphone wholesale business scale their operations. What’s different with Eze? Buying second-hand electronics is tricky considering the risk of getting sold substandard or fake products. To overcome consumers’ trust issues, Eze operates a grading process to confirm that all gadgets up for sale are in good condition and genuine, according to Nzewi. “We vet all the devices and test them before they are shipped to the buyers. For every transaction, we safely hold the funds in escrow until the buyer confirms the delivery. We also do a rigorous check on all sellers on our platform to ensure that they are legitimate,” he said. Nzewi added that there’s a standard 30-day warranty on the products and a return policy for customers in situations where gadgets get damaged in transit. The company partners with FedEx for logistics in the U.S., Europe, and Southeast Asia while using third-party logistics services across its Latin American and African markets. Though Eze is a B2B marketplace, Nzewi said the company has the consumers in mind. According to Counterpoint Research’s Global Refurb Smartphone Tracker, refurbished smartphone sales grew 5% globally in 2022, with Apple gaining 49% of the second-hand market. “We know that the people that these retail stores are selling to are the consumers. And so if we can reduce the costs as much for the retail stores, and we can improve the quality as much of the retail stores, the end consumers are the ones that benefit at the end of the day,” he said. Expanding operations In June, the YC-backed startup raised $3.7 million in an oversubscribed seed round with backers such as Y Combinator, Right Side Capital, C2 Ventures, Boro Capital, EVPI Investments, Itochu, Jack Greco, and other angel investors. Nzewi told TechCabal that much of the funding has gone to getting new hires and expanding the company’s sales operations. “And then we’re also looking to set up a second facility, although we’re not sure of the location yet,” he added. According to the International Data Corporation (IDC), shipments of used smartphones will reach a market value of $99 billion by 2026, Eze is betting that it will take advantage of this projected growth by adding new products and creating fresh partnerships with shipping companies to improve sales on its platform, according to Nzewi.

August 2 2023

Entering Tech #36: How Web3Bridge is training African devs

And how you can be a Web3 and blockchain developer for free! 02 || August || 2023 View in Browser Brought to you by Issue #36 Communities: Web3Bridge is training African devs Share this newsletter Greetings ET people If you’re looking to dive into the exciting world of Web3 development, this edition is for you. Today, we’re discussing Web3Bridge, a mentorship and training community created to bring together individuals who want to master the art of Web3 development. This is for the ones who want to unlock the potential of blockchain, decentralized applications, and smart contracts to build a future that’s more secure, transparent, and decentralized. So, whether you’re a seasoned developer or just taking your first steps into the Web3 realm, today’s edition will provide you with the info on Web3Bridge so you can go on to fuel your growth and progress. Here’s to coding the future of the decentralized world. by Pamela Tetteh and Timi Odueso. Tech trivia Some tech trivia to get the brain juices flowing. How many Web3 apps exist presently? What is Web3Bridge? On October 10th, 2019, after a global Ethereum Devcon conference, one of the co-founders of Ethereum Foundation announced that Ethereum needed a million developers. After seeing the tweet, Ayodeji Awosika, the founder of Web3Bridge, saw the opportunity to train blockchain developers because he believed Nigeria and Africa had enough intellectual and human capital to supply that number of developers. And so Web3Bridge was built. A Web3Bridge Cohort in 2022 The programme is a mentorship and training community established in 2019 to train blockchain developers in Africa. Web3Bridge aims to develop a sustainable Web3 economy in Africa through remote and onsite development training, supporting developers and startups, and lowering barriers to entry in the Web3 ecosystem. Since its establishment, it has successfully trained over 880 students on Web3 technology, specifically how to use EVM-compatible languages like Solidity to create decentralised applications on the blockchain. Its graduates have gone on to work for notable blockchain companies like Polygon, Nestcoin, Nahmii, Aavegotchi, Nethermind and Consensys. The programme is bridging the gap between skills and industry demands. Web3Bridge believes that Africa can contribute to the digital revolution that Web3 presents, and they’re contributing to that vision by training the next wave of blockchain developers on the continent. Web3Bridge is committed to helping these blockchain engineers launch their careers and become founders within the blockchain industry. How does Web3Bridge work? Blockchain engineers/developers, frontend engineers 3,500 Nil. Absolutely free Telegram Web3Bridge offers three unique pathways to people seeking career opportunities in the industry. These pathways are offered to aspirants of different skill sets and technical experiences. The first two pathways are free of charge, while the third is a premium programme for paying participants. A. Web3 Cohort: The programme introduces the students to blockchain technology and programming in EVM-compatible languages like Solidity. At the end of the programme, trainees will understand blockchain fundamentals, smart contract creation and blockchain programming. Duration: 16 weeks Target Audience: Web2 experts seeking Web3 knowledge Mode of Delivery: In-Person (Lagos, Nigeria) & Virtual Pricing: Free A Web3 Cohort in 2022 B. Web2 Cohort: Web2 Cohort is a fully remote training program for people looking to break into the web development space. This free programme introduces the students to HTML, CSS, JavaScript and React.js. Duration: 16 weeks Target Audience: Tech newbies and non-wen programmers Mode of Delivery: Virtual Pricing: Free C. Masterclasses: The masterclass is strictly for Web3 professionals looking to upskill as the industry evolves and grows. The training will expose the participants to new and emerging technologies within the space. The masterclass is designed to help the students familiarise themselves with new skills to advance in the blockchain industry. The training curriculum is constantly evolving to accommodate the advances in Web3 technology. Duration: 6 weeks Target Audience: Web3 professionals and Web3Bridge’s alumni Mode of Delivery: In-Person & Virtual Pricing: Paid What people say about Web3Bridge Speaking of community, here’s what a few developers who have passed throgh Web3Bridge have to say: Want to learn more about Web3Bridge? Follow the community on Twitter @Web3Bridge. You can also email the team at support@web3bridge.com. Join Web3Bridge on Telegram Attend The Web3 Lagos Conference Web3 Lagos Conference is a 3-day physical and virtual event comprising of the hackathon, workshops, networking, career fair and panel sessions. The Conference will hold between August 31 and September 2, 2023, at The Zone, Gbagada, Lagos State. The Web3Lagos conference is powered by Web3Bridge in Conjunction with Ayagigs. Register for free at event.web3bridge.com Ask a techie Q. What advice would you give to someone who wants to start a career in blockchain development, and how can Web3Bridge help them achieve their goals? Our advice to anyone interested in starting a career in blockchain development is that the best time to start is now! Learning blockchain development, like any other skill, requires time, commitment and sacrifice so anyone who wants to venture into the space should make up their mind to give it what it takes. Web3bridge runs two cohorts in a year and we are open to working with anyone with interest. The community is also open to supporting everyone that is interested and needs help while learning. That’s all we can take this week. Have any questions about working in tech? Ask away and we’ll find answers for you. Ask a question Here’s where to find your first tech job If you’re interested in kicking off your career in tech, here’s a list of job boards that regularly upload their platform with African tech jobs. The TechCabal Job Board The Fuzu Job Board Plenty Tech Jobs Kaleta Job Consultancy Careers in Africa Remote Africa AOJ: Africa on Jobs Tech trivia answers Already, there are over 14,300 Web3 apps globally. Opportunities The Kenyan Revenue Authority (KRA) is open for applications from undergraduates and diploma students for its three-month long Industrial Attachment Programme (This comes with a Ksh.7,000 monthly stipend). Apply by August 6. The Thomson Foundation Young Journalists Award 2023 is open

August 2 2023

SA’s national ID one of the most targeted by fraud attempts, according to report

South Africa’s national ID has seen more fraud attempts compared to other IDs on the continent, according to a report by Smile Identity. According to Smile Identity’s H1 2023 State of KYC in Africa report, South Africa’s national ID is one of the most targeted by fraud attempts on the continent. In the first half of 2023, the national IDs of Kenya, Nigeria, and South Africa were the three most frequently targeted types of IDs for fraud relative to other forms of identification across Africa. Specifically, in these three countries, national ID cards experienced a higher fraud rate than any other form of ID during the first half of 2023. The report states that scammers frequently attempt to use forged or stolen national IDs to gain fraudulent access to regulated services. The majority of fraud attempts comprise one of the following three formats; selfie spoofs, face mismatches, and fraudulent IDs. In a selfie spoof, scammers with stolen IDs attempt to pass themselves off as the owners of the documents by using a photo to impersonate someone else. This can include using a picture of a printout, a saved image or video from a device, a printed face mask, or even a lifesize cardboard cutout. In a face mismatch, a valid ID number is provided, but facial biometrics do not match the ID while in the case of fraudulent IDs, these could be counterfeit IDs, unacceptable ID types, tampered documents, expired IDs or times when an actual ID card was not provided. Of the three, in South Africa, selfie spoofs were the most common form of ID fraud, followed by face mismatches and fraudulent IDs. However, despite leading the national ID fraud trend, overall, fraud rates in South Africa dropped from 17% to 8% in the period between January 2023 and June 2023. The figures make South Africa the lowest-ranking country for onboarding fraud and the only country with a single-digit percentage of fraud attempts. In February 2023, South Africa’s ministry of home affairs announced a new National Identification and Registration Bill that aims to introduce a single, integrated biometric national identification system for all persons living in South Africa. Currently, South Africa has three independent databases for people: the national population register, the biometric national identity system, and the visa adjudication system. The newly proposed integrated database will homogenise all three databases and contain the identity information of everyone resident in South Africa, including citizens, legal residents, and visitors. In addition to the integrated database, the new bill proposes reducing the legal age for obtaining a national ID card from 16 to 10 years.

August 2 2023

Uber riders in Kenya can now pay for trips via M-PESA

It has taken Uber a long time to integrate M-PESA payments in its app, but it is finally here. Uber has also introduced a critical safety feature to boost rider security. Ride-hailing app Uber has introduced M-PESA payments on its platform, allowing riders to settle their cab fare using the mobile money service operated by Safaricom. This comes after the Uber Eats platform introduced the same feature a few weeks ago. The arrival of this product couldn’t have come at a better time, following years of frustration from customers who questioned why the feature wasn’t available. Previously, riders who wished to pay for trips via M-PESA had to request the driver’s M-PESA number and send the cab fare directly to them. While this method worked for some, it did not involve Uber, leaving it up to the driver to remit their commission to Uber. Kui Mbugua, General Manager UberEats, Kenya, commented, “We entered into this partnership with Safaricom to enhance the experience for delivery people and eaters on our platform through ease of access to earnings and providing a convenient mode of payment for deliveries, respectively.” The M-PESA integration goes beyond settling cab fees. Drivers can now receive their disbursements using M-PESA if they choose to do so. Previously, disbursements were limited to bank accounts. However, those without bank accounts can opt for the M-PESA option with the new channel. Alternatively, those with bank accounts can still choose M-PESA and eliminate one-step transaction charges when transferring their disbursements from the bank to mobile money wallets. “Through integrating M-PESA for trip payments, we are excited to bring the ease and convenience of mobile money to riders on our platform. We are pleased to have found a partner in Safaricom to take this significant step towards enhancing financial inclusion in the country,” Imran Manji, head of Uber, East Africa, said. Safaricom CEO, Peter Ndegwa also highlighted the usefulness of the feature. “This partnership with Uber will enable us to provide thousands of drivers and delivery people alongside millions of customers with a fully digital solution with faster, secure, affordable, and convenient payments through M-PESA. We maintain a strong commitment to working with partners such as Uber as they enable us to deliver more value and opportunities to our customers in line with our purpose to transform lives,” he said. These features were announced today during a media meeting held at the Safaricom headquarters. Manji emphasised a recent security addition for the Kenyan market – audio recording. This feature, already available in Nigeria and South Africa, allows drivers and riders to record audio during their trips for enhanced safety. The rationale is that riders would feel safer knowing their trip is being recorded, as it increases the likelihood of a safe experience when the driver is aware of the recording. The recording is done anonymously, and the resulting audio file is locally stored on the device and encrypted. Neither the driver nor the rider can listen to their recordings, but if a safety issue arises, the recording can be uploaded to Uber for investigation. The recording automatically self-destructs after seven days if no safety issue has been reported.

August 2 2023

Multichoice continues to double down on streaming with new product, DStv Stream

Multichoice has been betting on its streaming service to turn the company around and stake a claim to Africa’s streaming pie. Now it has launched another streaming product, DStv Stream. Multichoice has announced DStv Stream, a service which will replace the streaming platform which has hitherto been called just “DStv”, formerly known as “DStv Now”. The platform, a mobile app, will offer profiles, account information, viewing history, watch lists, downloads, Catch-Up, BoxOffice and live TV. According to the company, with DStv Stream, customers can discover content through better personalisation, enjoy a smoother and simpler streaming experience, as well as change audio soundtracks to their local language where available. This includes live sports commentary in isiZulu, isiXhosa, Portuguese, Afrikaans, and English. “From the initial launch of the first decoder to pioneering digital satellite TV and now with DStv Stream, what drives innovation for us, is providing our customers with the content they love, in the way that’s best for them,” said Marc Jury, CEO of MultiChoice South Africa. Multichoice continuing aggressive push into streaming The launch of DStv Stream follows the trend of Multichoice making significant investments in its streaming products. In its annual results for the year ended 31 March 2023, Multichoice announced that it would withhold dividends from shareholders in order to continue investing in Showmax, the company’s other streaming bet. “In view of the challenging South African market, the uncertain currency outlook, the funding needs of the Rest of Africa business and the investment required to drive Showmax to become the leading streaming platform on the continent, no dividend has been declared for FY23,” the company stated. In April, Multichoice announced a partnership with US media giant COMCAST, owners of NBCUniversal, and its UK counterpart SKY to create “Showmax 2.0” which would be a new platform powered by Peacock and 70% owned by Multichoice and 30% (sold for $30 million) owned by the aforementioned UK and US partners. Showmax 2.0 is slated for launch before March 2024. (Image source: Multichoice) On paper, leveraging Peacock’s “scalable and feature-rich technology”, Multichoice’s wide array of local content combined with global content from its partners, Showmax 2.0 would give top global streaming platforms on the continent like Netflix and Disney+, as well as African platforms like Wi-flix, a run for their money. The platform is slated to go live in the second half of the 2024 financial year.

August 2 2023

CBN’s FX reform called into question as FX market arbitrage widens

Months after a crucial FX reform to unify rates, Nigeria’s FX market arbitrage is widening. Nigeria’s Central Bank floated the Naira in June after years of pegging FX prices. Loosening control of the Naira was a crucial step in eliminating Nigeria’s multiple exchange rate windows. It was also a long overdue move touted as part of President Tinubu’s critical reforms aimed at unifying FX prices. Yet, two months after a Naira float that was supposed to unify rates, a significant arbitrage is emerging again. While the Dollar traded at ₦758 on the I&E window on Tuesday, at the parallel market, it traded at ₦860, opening up a significant arbitrage opportunity. One of the critical reasons for the gap in both FX windows is CBN’s inability to meet the backlog of dollar demand. Some estimates put the dollar demand backlog at $2.5 billion. If those demands remain unmet, the parallel market will keep seeing a lot of activity. Despite the reforms, the CBN has retained a ban on 43 items for which importers cannot get FX through official channels, forcing anyone trading these items to use the parallel market. Last week, the World Bank asked Nigeria to remove those restrictions to make the reforms more meaningful. Will the CBN be tempted to peg the Naira again? The CBN’s thinking is that the immediate reforms will encourage FX inflows. Last month, it ended a policy forcing IMTOs to pay remittance recipients in only foreign currency and increased the number of registered IMTOs. The endgame is to encourage remittance to go through official channels. Loosening FX restrictions is also linked to the fact that investors love stability. Yet, these early moves have not provided significant quick wins. While the Nigerian Stock Exchange is enjoying a bull run that has seen it near an all-time high, investors are still not falling over themselves to rush into Nigeria. Many of those concerns are steeped in the notion that the CBN may be tempted to peg the Naira again if the gap between the parallel and I&E markets widens. But everything suggests that the CBN is holding its nerve. After last month’s MPC meeting, the CBN acting governor, Folashodun Shonubi, said that volatility is expected. He also said the bank would “continue to intervene to bring the markets to the levels that we believe it should be.” His acknowledgment that pent-up demand is driving the current situation shows that the CBN chief has a clear grasp of issues, but it remains to be seen how quickly the bank’s intervention will have an impact. Wale Edun, a monetary policy adviser to the Tinubu government, told lawmakers yesterday that the situation will improve as liquidity comes in. Bloomberg quoted him as saying, “The fundamental value of the naira should be somewhere around 700.”

August 2 2023

Kenya suspends WorldCoin over data privacy concerns

The Kenya government has suspended WorldCoin in Kenya after thousands of people joined long queues to scan their irises in exchange for a $54 token. The Kenyan government has suspended the operations of WorldCoin, a blockchain product co-founded by OpenAI’s Sam Altman. WorldCoin also operates a crypto wallet called World App and recently began onboarding Kenyans onto its platform. Thanks to a $54 (KES 7,000) token for registered members, the registration process received significant attention. “The Government is concerned by the ongoing activities of an organisation calling itself ‘WorldCoin,’ which is involved in the registration of citizens through collection of eyeball/iris data. Accordingly, the Government has suspended forthwith, activities of ‘WorldCoin’ and any other entity that may be similarly engaging the people of Kenya until relevant public agencies,” said Kithure Kindiki, Kenya’s cabinet secretary for Interior and National Coordination. The issue raised by the cabinet secretary was widely discussed after the service’s launch in the country. It was unclear whether WorldCoin was registered in Kenya as a data processor. TechCabal established that WorldCoin had indeed been documented as a data processor by the data protection commissioner (ODPC) office, under the Data Protection Act, 2021. The name of WorldCoin’s parent company is Tools for Humanity, and it is based in Berlin. The ministry has not given a reason for the suspension even though WorldCoin has been properly registered in Kenya and per the law. It is unclear whether WorldCoin will appeal the suspension, which, up to this point, has been motivated by data privacy concerns. However, this reasoning doesn’t make sense, as Tools for Humanity had already met the requirements of a data processor and was duly registered by the ODPC. It also casts the ODPC in a bad light, as the statement indicates that the agency, alongside others, did not perform due diligence prior to issuing WorldCoin a license to collect biometric data in Kenya. “Relevant security, financial services, and data protection agencies have commenced inquiries and investigations to establish the authenticity and legality of the aforesaid activities, the safety and protection of the data being harvested, and how the harvesters intend to use the data. Further, it will be critical that assurances of public safety and the integrity of the financial transactions involving such a large number of citizens be satisfactorily provided upfront,” said Mr Kindiki. “Appropriate action will be taken on any natural or juristic person who furthers, aids, abets or otherwise engages in or is connected with the activities afore-described,” warns a statement from the ministry. Failure to adhere to the Data Protection Act 2021 provisions attracts fines, with penalties of either KES 5 million ($35,000) or 1% of the company’s annual turnover. Meanwhile, non-compliant individuals may be fined up to KES 3 million ($21,000), imprisonment for a maximum of ten years, or both. In the same breath, the capital markets authority of Kenya (CMA), a regulatory entity responsible for overseeing, licensing, and monitoring market intermediaries and licensees, has cautioned Kenyan about WorldCoin, stating that it is not regulayted in Kenya. The agency advises citizens to be cautious of potential fraudulent schemes that may arise in the ‘over-the-counter market of cryptocurrency tokens.’ The agency said, “The CMA has assessed the available public information concerning Worldcoin and hereby notifies the public that Worldcoin is not regulated in Kenya. Further, that Worldcoin-related products including crypto-tokens or their derivatives are not investment products within the scope of the Capital Markets Act and hence not under the regulatory purview of the CMA.” Amidst the confusion, Dennis Itumbi, Kenya’s chief administrative secretary in the ministry of ICT, continues to support the WorldCoin platform, arguing that Kenyans are not wrong with joining the crypto bandwagon. “Just missed a chance to scan and register for @worldcoin – hope there will be another chance to do it. I understand a huge turnout and security concerns led to a pause. There is nothing wrong with taking a risk on crypto. I did on bitcoin and it has been well,” he said.