- July 4 2023
Backed by the Netherlands, Tunga is exporting global talent from Africa
The Netherlands has eyes on Africa and its software developers. The relationship is symbiotic: Europe needs more developers; Africans need more liquidity. Tunga is the upstart coordinating a handshake. Like many other markets worldwide, Europe has a demand for software developers that its local market cannot meet. This has driven demand for technical talents to markets like India and Africa where tech-savvy youthful populations are filling positions at global firms. According to a 2021 report by Africa Developer Ecosystem, 38% of Africa’s 716,000 developers work for at least one company headquartered outside Africa. This trend benefits the Netherlands, a European country where the shortage of developers is fuelling the demand for skilled technical talents. “We are trying to fix this shortage,” says Michel Deelen, the Dutch Consul General. “This is why we have eyes on Africa.” Deelen was at an event in Lagos last month where he spoke about Tech Impact Africa (TIA), a new project that trains software developers in Nigeria. TIA’s goal is to train African developers and serve as a talent pipeline for Tunga, an Andela-like Dutch initiative that connects African software developers to global clients. Tunga has operated in Nigeria, Uganda, and Kenya for about six years, and claims to have over 1500 software developers in its community. “Tunga was founded with the mission to create attractive jobs for African youths,” says Jori Gerritsenn, Tunga’s program manager. “We are creating a win-win situation: helping the EU/US markets to meet its enormous software developer demand by facilitating African developers to reach their potential and gaining access to sustainable jobs on the international market.” The Africans involved get to work remotely for global firms, gain significant experience, and plug into global networks. Why Africa? Perhaps, the real question is why not Africa? Technical talent on the continent has continued to grow as more young people, seeking better opportunities, plug into the global demand for technology skills. From Lagos to Rwanda, alternative learning platforms like AltSchool have helped build a continental ecosystem of tech talents with globally competitive skills. Additionally, sourcing talent from Africa is cost-effective. The conversion of hard currency to local currency makes talent more affordable, creating a favourable environment for foreign businesses seeking skilled developers. Also, senior developers in Africa often face challenges in finding financially rewarding jobs within the continent due to the limited number of companies that can offer globally competitive salaries. As a result, they often explore job opportunities outside Africa. This aligns with the growing demand for skilled developers in Europe, making Africa an ideal talent pool to source from. Data source: Business Day Africa is rising to the challenge of churning out skilled talents for the world—although, the argument of whether the continent is meeting its own demand for software developers remains. Last year, Kenya introduced a national coding curriculum for its primary and secondary school students. And, in partnership with Microsoft, the East African country launched a digital talent program to build a workforce of tech talents. Issues with Nigeria’s academic sector have also prompted widespread interest in tech skills, altogether shaping a technically-skilled continent. Deelen, the Dutch Consul General, explained that Africa—and Nigeria especially—is showing a different sequence from the standard economic development theory that puts agriculture first, followed by industry then services like ICT. “Nigeria’s [technology] sector has sort of bypassed certain other sectors. The country is leapfrogging areas of slow growth and moving into something that is working.” “We’re happy about this,” he adds, maintaining that the Dutch government will continue to support impactful projects like Tunga across Africa.
Read More- July 4 2023
Crypto Exchanges in SA will soon be unable to operate without licences, says regulator
A new crypto regulation in South Africa will see crypto exchanges unable to operate in the country without licences by November 30. According to reports by Bloomberg, South Africa’s Financial Sector Conduct Authority (FSCA) will require that crypto exchanges in the country operate with licences by the end of the year. The FSCA has set a November 30 deadline for licence applications. According to Unathi Kamlana, commissioner of the FSCA, the regulator has received about 20 applications since the commencement of the exercise, with further plans for “enforcement action” that could see the unabiding firms fined or closed down if they continue to operate without a licence past the November 30 deadline. “There is potentially serious harm to financial customers when using crypto products, and therefore it makes sense for us to introduce the regulatory framework,” Kamlana told Bloomberg. “Time will tell the effectiveness of our measures, and we will continue to work together with the industry to refine and make changes where and if necessary.” South Africa becomes the first country on the continent to require that digital asset exchanges secure licences as crypto regulators and policymakers around the world continue to tighten the regulation belt around cryptocurrency. Several of the continent’s largest crypto trading exchanges emerged from South Africa, including Luno and VALR. Other global platforms such as Binance operate in the country and will also need to abide by the new regulations. According to Finder’s Cryptocurrency Adoption Index report, four million South Africans own cryptocurrencies. The index measures the growth of cryptocurrencies worldwide through an ongoing survey of internet users in 26 countries.
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- July 4 2023
SecondSTAX and ASEA join forces to unify Africa’s stock markets
Healthy stock exchange markets are a major source of business capital globally. But not in Africa. A former Goldman Sachs banker and an IT consultant want to change this by simplifying institutional access to Africa’s many but small capital markets. SecondSTAX, a Ghanaian fintech that provides access to stock markets for institutional investors, recently signed an agreement with the African Securities Exchange Association (ASEA) to unify Africa’s stock markets. Founded in 2020, SecondSTAX has raised $1.6 million in pre-seed funding from private investors and venture capital firms—including LoftyInc Capital, Orbit54 and STEMeIn—for its technology which provides access to debt and equity securities in Accra and Nairobi’s bond and equities markets. A Nigerian and Cote d’Ivoire expansion is in the works, Eugene Tawiah, SecondSTAX’s CEO, told TechCabal over a call. SecondSTAX’s suite of investment tools includes an order management and execution routing system for brokerage firms and institutional investors. The platform also includes full access to data and company research from all of ASEA’s participating exchanges. In total, ASEA represents 32 exchanges in 37 African countries. Stock exchange markets are an important source of capital for businesses and governments. Robust stock exchanges are often a sign of a healthy economy and provide private equity investors with an avenue to exit their investments in young companies. But African stock markets are far too small and inefficient to provide much-needed business capital. The continent’s small and illiquid capital markets are part of why tech firms optimise for IPOs in the London Stock Exchange, Nasdaq or the New York Stock Exchange. Institutional investors, both local and foreign, invest in publicly-listed African companies. But lack of market depth, timely information and access limit their investment options. Investors also have to navigate onerous rules to find and invest in valuable companies across all of the continent’s 30+ stock exchanges. With a combined market capitalisation of around $1.6 trillion, most of the exchanges are often too small for especially foreign institutional investors to concentrate on a single market. “Most African exchanges do not have price discovery mechanisms… Until you sort that out, you just end up chasing your tail,” Tshepo Magagane, a South African investment banker, told TechCabal. Rob Stangroom, Harare-based chief executive officer of African Financials, an investor relations and communications company, agrees: “To start fixing things, information must become freely available on multiple levels,” he told African Business earlier this year. One exchange to rule them all Connecting Africa’s markets for easy investor access and discovery is one solution. Since at least 2019, the African Securities Exchange Association (ASEA) has floated the idea of connecting all the continent’s exchanges and market information and making them all accessible to investors from one platform. The African Exchanges Linkage Project (AELP) hopes to connect African stock exchanges, following a 2009 model in which the Colombian, Chilean, and Peruvian Exchanges created Mercado Integrado Latinoamericano (MILA). MILA is a programme that allows traders in stock exchanges in the region to purchase or sell securities in different countries. It has eventually become Latin America’s largest stock exchange. The African version, officially launched in late 2022, is led by the African Securities Exchanges Association (ASEA) and is supported by the African Development Bank (AfDB). Thapelo Tsheole, president of ASEA, has said that a priority for his group is “to improve the efficiency and liquidity of Africa’s securities exchanges”. The lack of depth in African markets is one reason why tech startups and investors orient their companies to list in stock exchanges in the United States or London. For its initial phase, AELP’s trading platform, ALP Trading Link, connected seven exchanges, including the Bourse Régionale des Valeurs Mobilières (BRVM), a regional stock exchange of the eight West African countries that make up the West African Economic and Monetary Union (WAEMU). ASEA says the initial connection of seven exchanges represented 2,000 firms with a combined market capitalisation of $1.5 trillion. Two more exchanges have since been connected to ALP Trading Link, bringing the total to nine interconnected exchanges out of 32 exchanges currently operating in Africa. Africa’s oldest stock exchange the eponymous Johannesburg Stock Exchange accounts for 81 percent of the market cap of Africa’s 32 stock exchanges. Photo: SABC News According to AFSIC, the combined market capitalization of African stock exchanges is $1.6 trillion, a testament to the small size of public markets on the continent. Of this $1.6 trillion in market capitalisation, South Africa’s Johannesburg Stock Exchange (JSE) accounts for $1.36 trillion, followed by Nigeria’s NGX with a market cap of $66.7 billion in listed companies. Casablanca, Egypt and Nairobi’s bourses come third, fourth and fifth, respectively. In their 2019 report, attorneys at Winston & Strawn, a US-based finance-focused law firm, pointed out that stock exchange rules that prohibit investment from non-citizens or non-residents are a bottleneck for foreign investors. SecondSTAX says its platform will smoothen the KYC process for institutional investors across different exchanges, potentially allowing investors to book trades in other countries outside their domiciled region. To address foreign exchange concerns, SecondSTAX will add the Pan-African Payment and Settlement System (PAPSS) to its FX marketplace so that investors can book trades in multiple currencies. SecondSTAX already works with Aza Finance, VertoFX and Yellowcard in its FX marketplace. “We are doing to [the equity investment] space what the likes of Flutterwave have done to payments,” Tawiah told TechCabal. “Tech is what drives financial services and we are happy to be providing the tools for this,” Duke Lartey, SecondSTAX’s COO, added. Unlike payment fintechs which serve both individuals and businesses, retail traders cannot manage trades on SecondSTAX. Instead, retail investment apps like Bamboo and Chaka can use SecondSTAX to offer retail investors access to public companies across Africa. In addition to its selection of US stocks, Nigeria’s Chaka already allows users to trade a selection of stocks and exchange-traded funds (ETFs) that are listed on the Nigerian Stock Exchange. Bamboo founder and CEO, Richmond Bassey, told TechCabal on a call last year that his firm was exploring options to list local
Read More- July 4 2023
Remote working responsible for surge in cybersecurity threats in Africa, according to report
A survey of 139 companies in South Africa, Zambia, and Kenya showed that 62% of companies blamed remote working for the surge in cybersecurity threats. According to Liquid C2 Cyber Security’s “The Evolving Cyber Security Landscape in Africa 2022” report, 62% of surveyed companies on the continent said that the cybersecurity breaches to their operations occurred as a result of remote or hybrid working. The study, which covered 139 companies in South Africa, Kenya, and Zambia, also uncovered that as a result of remote and hybrid work, companies had limited capacity to curb the proliferation of threats on users’ devices. The top method of attack used by cybercriminals targeting companies was through email, using Phishing or Spam attacks (61%), with attacks through compromised passwords following at 48% and data breaches and attacks (44%) being the second and third most common. “One of the primary threats cited by decision-makers around remote and hybrid working was authorised use – the concern that the person accessing the device or the company resources is not a family member or someone misusing company owned resources. There are concerns around managing this challenge alongside malicious code from harmful websites and lost or stolen devices,” the report said. According to the report, from ensuring the protection of one environment for hundreds of employees in the office, they are now tasked with protecting hundreds of environments scattered across different countries, geographies, time zones and regions. To further alleviate the problem, the continent does not have the requisite cybersecurity skill pool to deal with the surge in threats. The report estimates that there are only 7,000 certified cybersecurity professionals, or one for every 177,000 people on the continent. “The biggest concern emerging from this report is that companies are saying that they’ve put a lot more cyber security controls in place. With threats evolving faster than security systems, companies cannot afford to get complacent,” says David Behr, CEO of Liquid C2. “The report highlights that businesses must be consistently vigilant about the ever-evolving cybercrime landscape and the methods malicious actors use to breach cyber security measures. As the report shows, complacency is a luxury no one can afford.” According to INTERPOL’s 2022 Africa Cyberthreat Assessment report [pdf], South Africa leads the continent in the number of identified cybersecurity threats, with 230 million total threat detections. In second place was Kenya with 72 million.
Read More- July 4 2023
Lagos is testing electric buses, can they withstand the city’s notorious traffic?
Electric buses in Lagos offer an environmentally friendly and more comfortable way to move around Lagos, but only for a select few—for now. Lagos, Nigeria’s bustling metropolis, aims to achieve a zero-carbon goal by 2050. While significant policies—like the five-year Climate Action Plan (CAP) 2020-2025—have been implemented to achieve this goal, Lagos is exploring new alternatives like electric buses to reduce greenhouse gas emissions. With the transportation sector accounting for over 60 percent of greenhouse gas emissions in the state, the electric buses—the result of a partnership between Oando Clean Energy Limited (OCEL) and Lagos Metropolitan Area Transport Authority (LAMATA)—will provide a “viable, competitive, and environmentally friendly” alternative to their conventional counterparts: BRTs and the iconic yellow Danfo buses. While questions of whether the electric buses will stop in Lagos traffic might arise, the buses can travel for up to 280 kilometres (Km) before needing a charge. On a full charge, passengers can travel from Oshodi to Obalende—26.4km—to and fro approximately five times before the buses must be recharged. There are just two electric buses in Lagos, plying Oshodi to Obalende and Oshodi to Ikorodu routes. According to Oando, these buses will be used as a test run, a proof-of-concept phase, to establish the viability of electric vehicles for mass transportation in Lagos State and derive key learnings for an expanded program across the country. The fare prices of the electric buses and the regular BRTs are the same. “Remember, we are still at the proof-of-concept phase, so we can not introduce differential fare now until the data is gathered to tell us what we need to do,” said Kola Ojelabi, public relations officer for LAMATA. TechCabal asked if there are plans to replace the regular BRTs in Lagos with the new electric buses in the future, “The proof of concept phase will determine the next step,” added Ojelabi. “It’s time for electric buses” Nigeria’s inflation rate inched up to 22.27% this year. With the recent removal of fuel subsidies, many commuters have experienced difficulties getting public transport due to a hike in fare prices. Duncan Byencit, a senior associate researcher at Cleantech Hub, believes that adopting electric vehicles for mass transit could be an antidote to commuters’ worry. Byencit suggests that using electric buses as mass transit in the state will offer a cheaper alternative as electric vehicles are three times more efficient and require minimal maintenance compared to regular vehicles. Byencit asserts that electric buses could also help reduce the traffic congestion in Lagos and the carbon emission in the state. “Most of the emission comes from small cars in Lagos, so it will be good to transit to mass transit buses and encourage people to move to them because it will not only reduce traffic but also reduce the emission that will be released,” she said. While electric buses hold great promise, the poor maintenance culture in Nigeria poses a challenge. “If those buses are properly maintained by the drivers and whoever is in charge of it, they are very sustainable,” Byencit asserts. While Oando and LAMATA continue to test the waters, Byencit is optimistic about nationwide adoption. “This is the bold step we have been waiting for. Now that Lagos has taken the lead, we can hope that other states will follow suit so that at least we can go by state-by-state adoption. And then, finally, the government can now take up the duty to push for it,” Byencit concluded.
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- July 4 2023
Reasons for SASSA payment rejection or delay 2023
The South African Social Security Agency (SASSA) plays a vital role in providing financial support to eligible individuals. However, there are instances where your SASSA payment may be declined, rejected or delayed. In this article, we will explore some common reasons behind these issues and provide insights on how to address them. 1. Incomplete or Inaccurate Information One of the primary reasons for SASSA payment rejections is incomplete or inaccurate information provided during the online application process. It is essential to ensure that all required fields are filled correctly, including personal details, banking information, and supporting documentation. Failure to provide accurate information or omitting vital details can lead to payment difficulties. To avoid this, SASSA grant applicants must carefully review the application forms, double-check all entries, and attach any necessary documents as requested. By paying attention to detail and providing accurate information, the chances of payment rejection can be significantly reduced. 2. Eligibility criteria for SASSA payment SASSA payments are bound to strict eligibility criteria. If an applicant fails to meet these requirements, their payment may be declined or rejected. Factors such as age, income, and residency status are assessed during the application process. It is crucial to understand the specific eligibility criteria for the program you are applying for and ensure that you meet all the requirements. To avoid potential issues, it is advisable to consult the official SASSA website or reach out to their offices for guidance. Understanding the eligibility criteria beforehand will help applicants determine their eligibility and prevent unnecessary payment rejections. 3. Banking issues Banking-related issues can also contribute to SASSA payment declines. It is crucial to ensure that the bank account provided during the application process is active, valid, and belongs to the applicant. Incorrect bank details, such as an incorrect account number or incorrect branch code, can lead to payment failures. To rectify banking issues, individuals should contact their respective bank and verify their account details. It is also advisable to keep the bank informed of any changes in personal or financial circumstances to prevent payment disruptions. Final thoughts on SASSA payment rejection or delay reasons While the South African Social Security Agency aims to provide financial support to those in need, SASSA payments can be declined or rejected for various reasons. By providing accurate information, meeting eligibility criteria, and addressing any banking-related issues promptly, applicants can ensure a smoother payment process. It is crucial to stay informed, seek assistance when needed, and maintain open communication with SASSA to resolve any payment-related concerns effectively.
Read More- July 4 2023
Zoie Health raises pre-seed round to build out women-focused digital clinic
A conversation with Thato Schemer, co-founder of South African women-focused healthtech startup Zoie Health. Zoie Health is a South African healthtech startup which recently raised an undisclosed pre-seed round to build out its product offering, “a holistic digital wellness platform for women by women”. The platform offers virtual and at-home consults, subscriptions for medications, resources and a community of women to support one another through healthcare issues. TechCabal talked to co-founder Thato Schemer about the startup’s approach to healthtech, the challenges healthtech startups currently face in the VC funding crunch, how Zoie Health intends to deploy its raised capital, and more. TC: Please tell us about Zoie Health and the problem you are trying to solve through your product offering. Thato Schemer: Our key insight was that healthcare is a space where women make majority of the decisions. 80% to 90% of all households have a woman making healthcare decisions even if it’s not for themselves. And what that really showed us was that women were the decision-makers within healthcare. They are the buyers of healthcare. As a result of that, we said, what if we bought a product that’s really focused on this particular target market of women and their families, especially because women have unique healthcare needs, given their biological makeup. Off the back of those two key insights, we said to ourselves, there are currently no services or products that can offer the same benefits in the market using technology. And so through a process of research, we connected with hundreds of different women who gave us many different insights that confirmed our hypothesis, giving birth to Zoie health which provides affordable and accessible health care for women. TC: What challenges would you say you have faced in trying to provide this solution to your target market? TS: Firstly, it’s a new solution right? So this idea of a women-focused healtech product is a very new type of solution. So just helping people understand what it is that we actually do, and how it’s differentiated, I think, has been a massive challenge for us. I would say we have made significant traction in addressing this information gap and now that we have built what I would say is a solid product, the education goes on so we can grow and scale this. TC:What was your experience in raising capital during a VC downturn? The downturn did not make things easy. We contacted many, many different investors and from those calls, I would say what investors are looking for right now is models that are sustainable and scalable. For us, what was quite helpful is that we did target investors that understand how to invest in healthcare and healthtech, and really wanted to see the solution come to fruition. The second thing is that we really were fortunate enough to partner with investors who believe in the mission and vision of bringing equitable healthcare to the continent. TC: How will Zoie Health deploy the capital you have raised? TS: We are currently in a growth phase so it’s really important that a lot of that funding is spent on our current projects. They include expanding our B2B offering to target businesses and provide them with our service. That’s a massive one for us as we look at product expansion and growing our product range. We really want to make sure that we deploy the capital in a responsible and thoughtful way and ensure that we are getting the financial position of the company to a strong place as well. TC: What would you say is the current state of healthtech in South Africa at the moment and how does Zoie Health intend to play a part in accelerating its growth? TS: I think it has really been interesting post-COVID. Pre-COVID, healthtech was an industry that was still very small and did not stoke that much interest. I think what the COVID pandemic showed was that people were able and willing to access healthcare services online given that they weren’t able to do anything else. That definitely increased the adoption of healthtech services not just in South Africa, but across the continent. In 2020 and 2021, we saw healthtech companies really do exceptionally well on the continent. I think what’s interesting about healthtech in the post COVID era is answering the question of how it can evolve past people needing the services because of the pandemic to being robust enough to still be a necessity after the pandemic. So how are we keeping healthtech relevant? How are we driving people to adopt online services even if they don’t actually really need to? How do we make sure that we are communicating the value proposition in a way that’s not overly reliant on the needs imposed by the pandemic? I also think that healthtech offerings in the continent are still extremely general. Zoie Health offers a differentiated and vertical solution and I think that’s what we are going to see more of in the future. In short, I reckon we will see startups building healthcare solutions for specific use cases or groups. So for example, in the US and Europe, which are a little bit further ahead of us in healthtech, they have startups fundamentally focused on diabetes care, or others focused on obesity and overweightness. Others are fundamentally focused on providing hearing solutions. And so with us, we’re fundamentally focused on women’s health care because we believe it’s such an underserved area, and we want to contribute meaningfully to it. The interview has been edited for clarity and length.
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- July 4 2023
TechCabal Daily – A super comeback
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning As Twitter continues its rate-limiting measures, thousands of users are flying their way into the blue sky. No, literally. Users have been flocking to Jack Dorsey’s new social media app, Bluesky, since Elon Musk announced Twitter’s new update. In fact, Bluesky—which you can only join by invitation from existing users—had to halt registrations for a while just to keep up with the kerfuffle. In today’s edition Union54 makes a super comeback Nigeria’s ride-hailing drivers association persists Ethiopia offers new telecoms licence TC Insights: Regulating African digital lenders The World Wide Web3 Event: The DBN Techpreneur Summit Opportunities Fintech Zambian fintech, Union54, rebounds with a superapp Image source: YungNolly Zambian startup, Union54, is making a comeback and building its payments service into a chat platform. ICYMI: In July 2022, Union54 halted its services after it experienced a $1.2 billion chargeback fraud. The move saw many African startups like Flutterwave and Eversend that previously used its card-issuing services rush to find alternatives. Now, in collaboration with global payment technology company Mastercard, Union54 is creating a super app called ChitChat. What’s a superapp? A super app is a mobile application that combines multiple services and functionalities into a single platform, providing users with a wide range of features and capabilities. ChitChat’s functions: The app will enable users across Africa to send messages over an encrypted platform due to Mastercard’s encryption technology. In addition, ChitChat serves as a social commerce platform, allowing users to transfer money to one another, use a dollar debit card, and make purchases from digital storefronts directly within the app. Furthermore, ChitChat, through its partnership with Mastercard, will introduce card and payment features. These features will initially be launched in a pre-release version starting in Angola, Tanzania, and Ghana. However, the plan is to expand to additional markets throughout the year. You’ll be in good company Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Click here to open a business account today. Mobility Nigeria’s ride-hailing union persists in pursuit of recognition The Amalgamated Union of App-Based Transport Workers of Nigeria (AUATWON), is seeking official union registration, but ride-hailing platforms like Bolt and Uber are not having it. Image source: Hello Giggles The reason for the dispute: The ride-hailing companies are objecting to the union’s name and its classification of drivers as “workers” for the platforms. The companies assert that drivers on their platforms are independent contractors, not employees. In December 2018, some drivers filed a suit seeking clarification on their employment status as workers or independent contractors. Why the distinction is important: If the drivers are recognised as workers, ride-hailing companies may become responsible for obligations such as providing health insurance, leave allowances, stipulations for time off, and more. Registrar of trade unions, Falonipe Amos, held a closed-door meeting on June 26 with the drivers and Uber and Bolt representatives, to discuss objections raised by the drivers aiming to progress their application. During the meeting, the drivers disputed the objections from Bolt and Uber, claiming that their chosen names were strategically selected to represent their own interests. Zoom out: Ride-hailing drivers insist on having a voice in decision-making, particularly regarding issues such as company commissions and transparent guidelines for driver deactivation from the platforms. Telecoms Ethiopia offers a new telecoms licence Who wants a piece of Ethiopia? Ethiopia has kicked off the bidding process for a new telecommunications licence. This move not only brings in a breath of fresh air but also paves the way for intensified competition in Ethiopia’s telecom sector. It’s also another significant step forward as the nation continues to break free from the shackles of monopoly, in hopes of boosting its economy. What monopoly? Well, until last year, Ethiopia’s only telecom service, Ethio Telecom, was controlled by the government. The government opened it partially to private ownership last year, selling 40% of the capital of the telecom in November and 45% in February. It also sold a telecom licence to Kenyan telecom, Safaricom last year, and soon after the operator launched its mobile network in the country in October. Now Ethiopia is about to sell another licence to another private operator to spice up the competition. Image source: Zikoko Memes Who will be interested? Ethiopia’s large population of about 120 million is every telecom’s dream. Months after launching in Ethiopia, Safaricom has reportedly gained 2.1 million customers, with a goal of reaching 10 million next year. The telecom recently received a payment licence to launch its mobile money offering M-Pesa in Ethiopia, making it the only competitor against the state-owned mobile money provider, Telebirr. With such an opportunity and fierce competition brewing in this telecom wonderland, who wouldn’t want to be a part of the action? GrowthCon 1.0: Learn how to unlock 10X Growth Connect with growth leaders, operators, and enablers to explore proven tactics for driving sustained business growth in Africa at GrowthCon 1.0. Experience curated masterclasses, case studies, a growth hackathon and more. Get your tickets now! TC Insights Regulating African digital lenders With a fast-growing digital finance consumer market in Africa, digital lending offers alternative funding options to Africans with flexibility and speed. This sector has also attracted large sums of investment to become a key growth driver in revolutionising the continent’s overall consumer credit market. According to surveys by the Commonwealth Chamber of Commerce, 40% of Africans prefer online financial platforms, contextualising the 102% increase in online alternative financing from $104 million in 2017 to $563.8 million in 2022. By deploying credit-worthiness models based on borrowers’ data, digital lending startups have become attractive to small businesses and individuals looking for quick loans. These startups have grown with strong investors’ backing. Image source: TC Insights There is not enough legislation on the regulatory framework for companies offering digital lending services in most African countries. Kenya and Nigeria are two of the most prominent African markets
Read More- July 3 2023
MultiChoice jacks up DStv prices three times in Kenya in less than a year
Kenyans already pay a lot for DStv services, but MultiChoice has adjusted the prices upwards thanks to high inflation and operating costs. South Africa’s entertainment company MultiChoice, which operates DStv and GOtv products in the Kenyan market, has announced a price hike for the services, effective August 1, 2023. This marks the third time in under a year the company is revising the price for its packages upwards, a move that will be very unpopular among its users. DStv Premium will now cost KES 9900 ($70) per month, up from KES 9500 ($68). Subscribers on Compact Plus will pay KES 6200 ($44) per month, a jump from the usual KES 5900 ($42) fee. Those on Family and Access will pay KES 1850 ($13) and KES 1300 ($9) from KES 1750 ($12) and KES 1250 ($8.8), respectively. GOtv subscribers have not been spared. The SUPA plan will now cost KES 1900 ($13.5) from KES 1750 ($12), while the Max tier will cost KES 1450 ($10.3) from KES 1350 ($9.6). Less than one year ago, MultiChoice adjusted the pricing of its plans to the uproar of its local users. The complaints make sense because the company has few rivals in sports streaming in Kenya. Locals have no alternative to accessing live games besides what DStv offers via satellite signals. Kenyans have, for a long time, faulted the company for its exorbitant package prices, and they will not catch a break from MultiChoice’s knack for revising its costs upwards. However, MultiChoice Kenya cites high inflation and operating costs for these changes, just like any other company in Kenya. Additionally, DStv no longer allows customers to stream content on multiple devices. The move came after the company complained about illegal streams when illegal businesses selling DStv logins came up to address a market that was already feeling the pinch of DStv’s high subscription costs. MultiChoice also runs a streaming service in Kenya, Showmax, which has attempted to rival Netflix over the last few years. Showmax has the same issues as DStv, as customers cannot stream content over two screens. Showmax further limits stream quality to just 720p, which is low in modern times, and at a time when Netflix cranks up resolution to 4K with high dynamic range (HDR) support. READ MORE: No dividends for Multichoice shareholders as company channels funds into Showmax The beauty of Showmax (Pro) is that it has a sports streaming feature but at a higher price (KES 2100). Compared to the current amount of money that customers pay for DStv, Showmax is a great bargain, but remember, a customer needs an internet connection to access Showmax, whereas DStv relies on satellite signals. Furthermore, Showmax Pro does not stream Champions League matches in Kenya, although it does so for customers in its native South Africa. Will these new prices see customers cancel their DStv subscriptions? Probably not since most Kenyans cannot access internet-based streaming services and depend on DStv or GOtv packages for home entertainment. However, when the new prices go into effect in a month, some subscribers may be forced to look for other options, bearing in mind that their pockets are already strained following the signing of the Finance Bill 2023.
Read More- July 3 2023
e-Pharmacy startup MYDAWA closes its largest round yet at $20 million
MYDAWA has raised funds three times before, but the latest round marks its biggest fundraising event yet as it eyes to expand beyond East Africa. MYDAYA, an e-pharmacy platform based in Kenya and operates in the East African region, has raised $20 million in funding from Alta Semper Capital. This marks the company’s fourth fund driver after launching in 2016. MYDAWA, which offers health services through online and physical stores, has also purchased Guardian Health, a pharmacy chain that operates in Uganda. The firm has not revealed how much it paid for the acquisition, but a statement from the company says that it is part of MYDAWA’s plan to expand its turf into new markets. The new Ugandan arm has 19 new stores in Kampala and neighbouring regions. MYDAWA adds that it is actively looking for potential acquisitions, collaborations, and promising startups across Africa. It is also interested in engaging with more partners and value-add investors as it expands. In a statement by the MYDAWA, the company said, “MYDAWA is also partnering with other major health providers and businesses. Sales of its own brand products to wholesalers, clinics, pharmacies and supermarkets are growing rapidly. Sales of its services, from telehealth to fulfilment, are commencing with some of Kenya’s biggest clinic chains to expand their reach. It is partnering with insurers and others to develop and fulfil best practice chronic care as illnesses such as diabetes become an increasing issue in Africa. It provides rich data to partners.” Alta Semper’s CEO, Afsane Jetha, says, “This investment marks our entry into digital healthcare in Africa, which we see as a major growth area across Africa in the coming years. MYDAWA was the logical choice for us as their groundbreaking technology, underpinning a scalable business model along with regulatory know-how and market entry experience, mapped so well to our own strategy. The drive to increase access to good advice and safe and affordable medication is core to our overall mission of democratising access to health and wellbeing across the African continent.” Before today’s fund, MYDAWA had raised a little over $9 million in previous rounds. Its seed round occurred in March 2017, when it raised $1.5 million from Indigo Partners. Two years later, it staged a Series A round with $3 million raised from Africa HealthCare Master Fund and Indigo Partners. Then towards the end of 2021, MYDAWA raised $1.2 million from Bill & Melinda Gates Foundation. During the reveal of the fund, MYDAWA announced the appointment of Pricillah Muhiu as its business lead in Kenya. Priscillah worked at Glovo as general manager for the Kenyan market. “Under Priscilla’s leadership, there is already significant expansion of both consumer and business-to-business activities,” says MYDAWA.
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