Media entrepreneur Fatu Ogwuche launches YouTube show for tech founders to tell their stories
On Tuesday, Backstories with Fatu premiered on YouTube. Backstories with Fatu is a YouTube show hosted by tech entrepreneur Fatu Ogwuche on her channel Big Tech This Week, in which she discusses the backstories of some of the most prominent people in the African tech ecosystem and the pivotal events that made them who they are today. The first episode, which featured a conversation with Kola Aina, a renowned entrepreneur and founding partner of Ventures Platform, covered a variety of topics, including his background before becoming a tech investor, and what he looks out for when backing founders. The chat lasted about 40 minutes and came across as quite relaxed and candid, like a discussion between friends. Ogwuche and Aina discussed the Paystack exit and what it meant for him as one of their investors, the Nigerian Startup Bill, some of his losses as an investor, and his interesting art collection. The highlight of the interview was Aina sharing how Ventures Platform stepped in to resolve the ThriveAgric crisis in 2020. The agro-crowdfunding startup couldn’t repay retail investors due to the loss incurred by the COVID-19 pandemic, which led to countless fraud allegations on social media. Aina also shared how much his personal rule of not backing founders whom he doesn’t consider to be fundamentally nice people saves him from being burnt in the investing business. “We want to back founders who are decent people,” Aina said, “who treat their co-founders and employees decently, and who are respectful. Because, to be honest, it ultimately bubbles to the top.” Ogwuche said the purpose of the series goes beyond just entertainment. “It serves as a launchpad for emerging tech entrepreneurs, providing them with actionable insights and mentorship from seasoned industry veterans,” she revealed in a press release. “For established tech insiders, the interviews offer a glimpse into the future of the ever-evolving ecosystem,” she added. Ogwuche writes a weekly newsletter also called Big Tech This Week, a popular newsletter covering the African tech ecosystem. This season of Backstories will feature interviews with three other innovators in tech and business, including Odun Eweniyi of Piggyvest and Olumide Soyombo of Voltron Capital. To watch the first episode and look out for coming ones, visit Ogwuche’s YouTube channel here.
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👨🏿🚀TechCabal Daily – Nigeria removes deadline for old notes submission
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday It’s Spotify Wrapped season—the time of the year when the music streaming app tells you how bad your taste in music is. This year, in addition to showing users their top songs and artists, Spotify is also assigning users cities based on their listening habits—we hear most Nigerians have been assigned Ibadan. To find your Spotify Wrapped, open your app and it should be staring you in the face. If not, go to the top menu, scroll left, and you’ll see a Wrapped button. In today’s edition Nigeria removes deadline for old notes submission Ronaldo sued for Binance promotion Bolt expels 5,000 Kenyan drivers Starlink is still illegal in South Africa 8 startups selected for Grindstone Africa accelerator programme The World Wide Web3 Opportunities Policy Nigeria’s Supreme Court removes deadline for submission of old naira notes GIF source: Tenor Nigerians can now rest easy. The Nigeria Supreme Court has ruled that the old naira notes will remain legal tender in the country until further notice. ICYMI: In October 2022, former CBN Governor, Godwin Emefiele, announced the apex banks’ plan to redesign and circulate a new series of three banknotes—₦200, ₦500 and ₦1,000—and gave the country three months to submit old banknotes. The short notice triggered a cash scarcity that crippled its economy. However, in March 2023, the Supreme Court ruled that the CBN didn’t provide adequate notice to the public and ordered that the old version of the notes remain as legal tender alongside the new notes until December 31, 2023. Ten days later, the CBN discontinued its naira redesign policy. Despite the governor’s reassurances about sufficient cash availability, the country still experienced a challenging shortage of cash. As the deadline drew closer, the federal government filed for an extension to the December 31 deadline a few days back, citing concerns about a potential economic crisis if the old notes were demonetised. Now, the apex court has ruled today that the notes will remain legal tender and be accepted for transactions until further notice, cancelling the December 2023 deadline. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Crypto Ronaldo sued for Binance promotion GIF Source: Tenor Cristiano Ronaldo has bagged a lawsuit for promoting an NFT product on the world’s largest cryptocurrency exchange, Binance. Investors who filed the lawsuit claimed Ronaldo used his robust social media following—850 million followers across social media—to promote investments in unregistered securities on the crypto exchange. The plaintiffs claimed to have suffered losses from the promotion. A missed goal: The football star entered a multi-year contract with Binance in 2022 to create a series of NFT collections for sale on the company’s platform, among many other things. The allegation comes shortly after Ronaldo shared updates on social media about making new content for the crypto exchange platform. Binance, which has had a rocky few months, is again the subject of scrutiny. The crypto exchange was forced to replace its CEO Changpeng Zhao who admitted to facilitating transactions with sanctioned groups and encouraging US users to obscure their locations. Binance was fined of up to $4 million for the violation. The company is also expected to make a complete exit from the US. Lights out: Ronaldo’s case is not the first of celebrities accused of their promotion of products. In 2021, Kardashian was sued for promoting the cryptocurrency EthereumMax without disclosing that she had been paid to do so. The lawsuit alleged that Kardashian’s promotion had caused investors to lose millions of dollars. The reality TV Star later agreed to pay $1.26 million to settle the charges after the US Securities and Exchange Commission found her guilty of not disclosing she was paid to promote the cryptocurrency asset. Mobility Bolt expels 5,000 Kenyan drivers in six months Image Source: Bolt Over the past six months, Bolt has expelled 5,000 Kenyan drivers who failed to comply with safety regulations or have been involved in safety-related issues. The Estonian ride-hailing company discontinued affected driver accounts following a recent directive from the National Transport and Safety Authority (NTSA). What directive? In October, the NTSA asked Bolt to present a comprehensive plan addressing safety concerns raised by riders and drivers over the years, including issues regarding illegal commission charges, and also terminate its booking charge— a service fee levied directly to passengers using its platform, which sparked disagreements between drivers and customers. The directive was a pre-requisite for Bolt to renew its annual licence. To meet this requirement, Bolt developed a safety plan and also terminated the controversial booking charge. The ride-hailing company also invested KESS20 million ($130,000) toward safety-related practices in Kenya. What practices? Bolt’s safety measures include a random driver selfie check, rider and driver training programmes, and strict compliance enforcement with immediate consequences for violators, including permanent suspension from the platform. The company has also enhanced reporting tools to facilitate the reporting of safety concerns. The ride-hailing company has met NTSA’s primary demands and its operating licence has been renewed for the next financial year. Checkout the Paystack Changelog Paystack enabled single and bulk transfers to M-PESA Consumer Wallets for merchants in Kenya. See what Paystack has been up to in 2023 → Policy ICASA warns against using Starlink’s services in South Africa Image source: YungNollywood The Independent Communications Authority of South Africa (ICASA) has again, issued a warning, against the illegal use and provision of Starlink satellite broadband services within the country. This warning comes days after Starlink’s rival, OneWeb, launched its broadband service in South Africa. Notably, Starlink has been unable to secure an operating licence in South Africa due to its refusal to surrender a 30% stake in its service to historically disadvantaged groups. Although the service isn’t “officially” available in South Africa, ICASA is aware of the offering of satellite internet services using Starlink terminals in
Read MoreOpen borders and financial inclusion are key to triggering Africa’s economic miracles
This article was contributed to TechCabal by Uzochukwu Mbamalu, founder and CEO, Palremit. According to Statista, Africa’s GDP per capita reached $2,150.6 in 2022—its highest value since 2015—and this figure is projected to reach $2,700 by 2026. This comes as no surprise, with the continent fast becoming a hub for technology adoption. With the recent trend of open borders seen across the continent, particularly in Rwanda, Kenya, Uganda, and Ethiopia, analysts have now predicted the continent to benefit more than ever from cross-border technology and knowledge transfer, the net present value (NPV) of skilled workers, labour quality, and intra-African trade. Current state of open borders in Africa Africa is witnessing a gradual shift towards open borders. Several policies and agreements are promoting regional integration and facilitating cross-border trade and mobility. African Unioun’s 2063 vision The African Union (AU), with the creation of the African Continental Free Trade Area (AfCFTA), has been actively promoting the idea of open borders. Their Agenda 2063 initiative seeks to establish a unified African market where people, goods and services can move freely. Regional Economic Communities (RECs) RECs such as the East African Community (EAC) and Economic Community of West African States (ECOWAS) were created to foster visa openness between member countries. This, in turn, facilitated easy transfer of skill, labour, and technology; as well as regional reciprocity. RECs help by implementing open-border policies and regional agreements that encourage trade and mobility, which reduce fringes in mobility for net-positive skilled workers, and allow African collective economies thrive from new technology knowledge, access to financial technologies and infrastructure for cross-border remittance, tourism growth, and increase in communities’ economies through economic migration. Proof of economic impact of open borders Countries around the globe operate open borders amongst themselves (like the Schengen Area) to promote bilateral and multilateral diplomacy. Others do so solely to learn by knowledge, technology, and skill transfer; or to grow tourism. The biggest fear for open border policies have been the economic disparities that lesser-developed countries face when they open themselves up to African citizens from more advanced, developed countries. Countries like Singapore and Seychelles are testament to the economic miracle that open border policies have on nations that take the bold leap. The Singapore “miracle” Singapore has one of the best economies in the world, evident in its high GDP per capita value. Singapore operates a free market by opening itself as an exciting hub for enterprises to set up and grow thriving businesses. Some might say Singapore landed its fair fortune given its ideal location for trade and logistics which has majorly attracted foreign direct investment from multinational corporations. But the truth is: its trade policies have also largely contributed to this. Most African cities are ideal for foreign investment opportunities. Hubs like Lagos and Kigali are prime examples. Kigali has thrived on tourism and travel. And, with its recent open border announcement, it is expected to attract more talents. Singapore’s open-trade policies have fostered its economic growth. This has led it to operate a diversified economy across manufacturing, finance, logistics, and technology. African countries can learn from each other through more intra-African collaboration, and exchange more technologies between themselves. including fintech. Singapore has a very attractive ecosystem for innovation and entrepreneurship. This is why it attracts foreign investment from high-value multinationals, including top-rig manufacturers in the energy industry. Africa currently sits at the bottom as the continent with the lowest GDP per capita. This value doesn’t reflect the enterprising spirit Africans are known for. One way we can learn from open-trade policies is to identify ways the African continent can benefit from the economic benefits that African citizens bring. Seychelles Seychelles had the highest GDP per capita in Africa in 2022; the country has thrived from tourism, fishing, and agriculture. Seychelles leads the way for the one of the most visa-free countries to travel to. A 2022 AVOI report showed that only 54% of intra-African travel are either visa-free or visa on arrival. If more countries, particularly in the southern and central African regions, begin to open up their borders to African citizens or set up more sophisticated processes for e-visas, this will facilitate more trade. MSMEs will benefit from transferred access to financial services by migrants, increasing their tax benefits for these countries. For instance, Flutterwave, Payoneer, Geegpay and Palremit offer a multi-currency swap feature that allows expatriates to exchange currencies with ease when they travel across the continent or overseas. This transferred access can facilitate more trade for agriculture, commerce, and other economic areas that move the needle in Africa. Financial inclusion and open borders in Africa The impact of financial inclusion on economic growth in Africa is multi-faceted. But, specifically, open borders will create a more extensive market for financial institutions, making it economically viable to reach underserved regions and communities in lesser-developed economies. For instance, African fintech providers like Flutterwave, Paystack, and Palremit are expanding into Sudan’s rural economy. Secondly, migrants face the challenge of expensive cross-border remittance and lack of access to banking services (like access to credit and their credit history) when they travel. But with more expansive financial technology across Africa, migrants and rural communities can benefit from these technologies via foreign trades and easier means to move goods around and exchange currencies between suppliers and buyers at low fees, thus contributing to Africa’s financial inclusion dream. Financial inclusion can be well established by facilitating digital financial services, education and literacy, public-private partnership, infrastructural development, and regulatory harmonisation across all African countries. Future prospects In the coming years, Africa’s economic miracle would be a testament to the power of leveraging and exploring regional integration to increase trade and foreign investment. The strategic implementation of these initiatives and the continued focus on overcoming challenges will be the keys to unleashing Africa’s full economic potential and fostering shared prosperity across the continent.
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🚀Entering Tech #50: How Jackleen Nnely became a project manager
Lagos traffic made her leave a 13-year career! 29 || November || 2023 View in Browser In partnership with #Issue 50 How Jackleen Nnely became a project manager Share this newsletter Greetings ET readers We still have open roles for some superstar reporters in South Africa, Kenya and Nigeria. If you or anyone you know is a great storyteller who’s interested in the business and human impact of tech in Africa, come join us to build Africa’s most important tech publication. Apply here. by Timi Odueso Tech trivia questions Some trivia before we begin. Answers are at the bottom of this newsletter. What’s the biggest tech acquisition in history? From Lagos to Northampton In June 2021, Jackleen Nnely took a quick decision to pack up her bags and move from Lagos, Nigeria, to the UK. By September, she was already tucked away in the small rural town of Northampton. Jackleen Nnely Jackleen’s move wasn’t ignited by a grand wish to find a better job or escape Nigeria’s economic crisis…at least not at first. Before she left for the UK, Jackleen was managing African-led projects for Apple, and she had worked with some of the biggest media and entertainment companies since her undergraduate days. She was, by all means, doing very well for herself. So what made her leave? One word. Traffic. Long, humid hours spent in Lagos traffic. I’ve been sitting on my interview with Jackleen for months now—mostly because I wanted to use it for another story—but given last week’s discussion on Mastery v Efficiency, I wanted to highlight the life and career of a true master at project management—managing projects for Apple, MTV Base and Bentley—who has spent the past 15 years mastering her job, and is planning her future efficiently. Here’s how Jackleen did it. Simplify with Zido Streamline your global supply chain from procurement to distribution with Zido. Start here. How Jackleen did it Producer/Director, Maxima Media Group Aug 2008 – Jun 2009 Project Coordinator, MyStreetz Media Mar 2010 – Jan 2013 Project Manager/Producer/Project Lead, MTV Base Feb 2013 – May 2016 Project Manager, Apple Jun 2020 – Dec 2021 Project Manager, Premier Foundation Feb 2022 – Feb 2023 Senior Project Manager, Bentley Systems Mar 2023 – Present You moved countries for traffic, Jackleen? If you’ve ever lived in Lagos, you’ll understand. I was on my way to work one day, and I was stuck in traffic for hours. It was very early in the morning, I think… and I just decided that I didn’t want to do that anymore. I also had been looking at skilling up as a project manager and a master’s degree looked like the next best thing to do so I started working on moving, and by September, I was gone. Whoa! Three months? It takes people much longer. How did you do it? Money! But a lot of planning too, you know we project managers, planning na our work! I’ve always wanted to do my master’s as most of my friends had theirs. And when you’re young and your friends are going to school, you just feel left out. I had spent years hustling, and I wanted more in terms of my education. So while in traffic, I decided to start applying for a master’s degree in project management as soon as I could, and by July, I had gotten multiple admission offers, and by September, I was in the UK. That sounds expensive! Yeah, it cost about £20,000 in total and that’s where the money comes in. So I’ve been working since I was a teenager! Ah, OG gang! Lmao. So I studied computer science, and I was actually still in university when my tech journey began. In my career, I started as a production coordinator, but I quickly transitioned into a producer role. I then moved on to become a project manager within my team. I’ve always been a structured person who likes to plan and work with spreadsheets, and that made me a natural fit for project management. By 2016, I got a job at MTV Base Africa, and did a stint with a clean-energy tech company called OneWattSolar. People I met at my MTV Base job brought me to work at Apple for about 18 months. In all this time, I was rather prudent with money. I saved a lot. I didn’t know what I was saving for, but I knew that money would come in handy. With my savings, I could afford to pay my fees, travel expenses, and rent. And when I got to the UK as well, I worked part-time for a bit during my master’s before I graduated and settled for a full-time gig. Working and schooling? That must have been hard. It was, but it wasn’t new. When I first started my career in 2008, my plan was to study economics at the Lagos State University but I was given computer science instead which I ended up loving. And around the time I was an undergraduate at LASU, I was balancing work and school nicely, it got harder with my job at MTV Base but as a strong Naija babe, I ran it! Another thing that helped was being open with my bosses at work who helped me balance it all. Also, almost everyone in my Uni had a side gig in tech, we were all full-time professionals, juggling school and work! Phew! So was it easy finding a job in the UK? Finding a job as a foreigner in any country is never easy! It’s a new space, and you are still figuring things out, and then there’s the problem of a lot of companies wanting to see that UK experience on your CV. One recruiter actually asked to have a call with me to confirm if I was a “Native speaker”. I mean, my first language is English! Lol, so what was that about? This made me very intentional about my job search! I also wanted to understand
Read MoreBolt Kenya expels 5,000 drivers in six months over safety concerns
Bolt is taking a stringent approach to safety following years of a tainted reputation in Kenya. Bolt, an Estonian ride-hailing company, has expelled over 5,000 drivers in Kenya due to non-compliance and safety-related issues following a directive from the National Transport and Safety Authority (NTSA). Bolt discontinued the accounts of the affected driver partners over the last six months, seemingly to adhere to tough safety regulations by the NTSA. The e-cab company, which has a presence in over 15 towns and cities in Kenya, adds that it will invest KES 20 million ($130,000) in safety-related practices. A few weeks ago, the NTSA asked the ride-hailing firm to explain how it would address driver and rider safety concerns that have been raised over the years, which have included instances of drivers physically assaulting passengers and unauthorised selling of Bolt driver accounts to third parties. The directive was a prerequisite for Bolt to receive its annual license renewal. The company later stated that it had developed a plan to ensure safety on its platform and discontinued the controversial “booking charge” it had introduced earlier, which had caused disagreements among drivers and customers. “We understand the trust our users place in us, and we are taking proactive steps to ensure their well-being during every ride,” said Linda Ndungu, Bolt Kenya country manager. To this end, Bolt says it is improving safety with internal measures, including a randomised driver selfie check. It will also offer training for riders and drivers, and enforce strict compliance while suspending violators. The company adds that it has enhanced reporting tools to make it easier to report safety concerns. “Bolt has also intensified its efforts to enforce platform guidelines. Any driver or rider found in violation of safety standards as well as being non-compliant will face swift and decisive consequences, including permanent suspension from the platform,” Bolt clarified in an emailed statement. Bolt Kenya has been facing driver dissatisfaction due to its commission rates exceeding the government’s suggested 18%, including booking fees. Some driver partners have been linked to assault and incidents of sexual harassment that have tainted the platform’s reputation.
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👨🏿🚀TechCabal Daily – LemFi pauses Ghanaian ops days after BoG suspension
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re still hiring Senior Reporters in Nigeria, Kenya and South Africa. If you know great storytellers who are passionate about the business of tech in Africa, send them our way by sharing this link with them. If you’re one yourself , then apply. Do it. Join us. Quickly. Don’t hesitate, apply now. In today’s edition LemFi pauses Ghanaian ops weeks after BoG suspension Twiga has new funding Kenya’s startup bill is one step closer Orange pulls out of Ethio Telecom sale Mozambique approves $80 billion energy plan The World Wide Web3 Opportunities Fintech Lemfi halts operations in Ghana amid regulatory concerns Ridwan Olalere and Rian Cochran, co-founders of LemFi. LemFi has been forced to suspend its operations in Ghana. The remittance startup halted its operations one week after the Central Bank of Ghana (BoG) identified LemFi as one of eight fintechs operating without the necessary regulatory approvals. What approval? In Ghana, like many other countries, companies can’t trade foreign currency without a licence. If caught doing so, they stand to face penalties of up to seven hundred penalty units, imprisonment for a maximum of eighteen months, or both. In this case, LemFi was barred from operating in Ghana along with other operators like Wise and PayPal. The Central Bank of Ghana also warned all financial institutions in the country to stop dealing with these fintechs. Following LemFi’s suspension, users will no longer be able to send money to banks or mobile money wallets in the country. What now? A source familiar with the company’s operations said that it plans to work with Ghanaian regulators to obtain the necessary licences. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Funding Twiga secures funding to pay its debts GIF source: Tenor Twiga has secured undisclosed funding just weeks after it faced a KES40 million ($261,878.75) debt lawsuit from Incentro Africa, a cloud services vendor. Creadev, Juven, TLcom Capital Partners, and DOB Equity led the founding round. The investment comes at a time when Twiga is reinventing itself after previously undergoing a rough patch. The startup laid off a third of its workforce in August. While the CEO didn’t expressly state what the funds would be used for, the announcement came after Twiga’s CEO said, in a now-deleted medium post, that plans were underway to repay long-standing dues. ICYMI:In September, Incentro Africa, a Kenyan Google Premier partner who provided Google Cloud Services and Partner Service Funds to Twiga Foods, sued Twiga for the non-payment of KES 40 million ($261,878.75) debt. Incentro Africa had threatened to pursue a liquidation order against Twiga Foods if they failed to settle the debt. However, none of that will be happening as Twiga seems to be getting out of the water with the new capital injection from its old-time investors. Twiga, however, said Incentro Africa’s legal actions were fueled by ulterior motives. Twiga says that Incentro Africa’s actions were fueled by Twiga’s enquiry of Google Ireland regarding its account’s billing setup, structure, and management. Regulation Kenya’s Startup Bill to be signed into law in 2024 Kenyan president William Ruto signing the 2023 Finance Bill Kenya’s President, William Ruto has announced that the country’s Startup Bill 2022 is set to become law by May or April 2024. The Startup Bill was initially introduced in the Senate in 2021. After receiving its first reading in February 2023, it is currently undergoing further discussions in the Senate. Stat of the week: Only three African countries have enacted a Startup Act—Tunisia, Congo and Nigeria. Tunisia’s Act was enacted in 2018, while Congo’s was enacted in September 2022, one month before Nigeria passed its own. Key highlights of Kenya’s bill: The Startup Bill will offer incentives for registered startups, like tax breaks and a dedicated platform for resources. There’s also a plan for a credit guarantee scheme to financially support and train startups for growth. If enacted, the Startup Bill will establish a comprehensive legal framework designed to bolster technological growth, foster innovation, and attract both talent and capital. Zoom out: The context of this legislation is crucial, given Kenya’s ongoing struggle to address unemployment among its youth population. Kenya’s Small and Medium Enterprise (SME) sector employs over 80% of Kenyan youth annually to help alleviate unemployment in the country. Despite their efforts, these SMEs struggle to be sustainable as nearly 75% of them shut down after a short period. Checkout the Paystack Changelog Paystack enabled single and bulk transfers to M-PESA Consumer Wallets for merchants in Kenya. See what Paystack has been up to in 2023 → Telecom Orange withdraws from Ethiopian Telecom stake acquisition GIF source: Tenor Orange has taken a step back from its decision to acquire a 45% stake in Ethiopian operator Ethio Telecom. According to the French-owned telecom, market conditions are not conducive for a successful investment. ICYMI: In June 2021, Ethiopia expressed interest in buying a 40% stake in Ethio Telecom. However, in March 2022, the sale was postponed due to economic conditions. The process was later reactivated in November 2022, and in February, the stake was increased. In May 2021, a consortium led by Kenya’s top operator, Safaricom, secured the first private licence to compete with Ethio Telecom. However, further competition has been hindered by various factors, including, a two-year civil war in the northern Tigray region that ended in November 2022 and difficult macroeconomic conditions. Zoom out: Earlier this month, the Ethiopian government cancelled the process of granting a second private telecoms licence due to insufficient market interest. This decision highlights the ongoing challenges that the telecom sector in Ethiopia is currently facing. Energy Mozambique approves R1.5 trillion ($80 billion) energy plan GIF source: Tenor Mozambique is saying hello to a renewable revolution. The country is seeking R1.5 trillion ($80 billion) in funding to implement its energy transition strategy.
Read MoreEchoVC’s new fund will create a pipeline of climate-tech, energy and agri-tech startups
EchoVC, one of Nigeria’s oldest indigenous venture capital firms, wants to be the first institutional cheque for founders building solutions in or related to climate-tech, energy, and agri-tech. This comes as fintech funding lost its dominance this year in favour of investments in energy and climate-tech companies in Africa. The $2.5 million fund dubbed Eco Pilot Fund I will invest up to $200,000 in promising climate tech. Backed by two undisclosed DFIs, the Eco Pilot Fund I will invest in 8 to 10 climate-tech and energy startups across Africa. “As we see more mid-sized and large funds coming to market to back climate and energy startups, we have struggled to find any that are set up to take first money risk or do the work to help kickstart the companies that will later be candidates for investment by these funds,” Taiwo Kamson, a principal investment officer at EchoVC pointed out. “The continent needs these pre-seed stage companies to create and deploy the solutions necessary to meet market demand.” By being the first institutional cheque—EchoVC will invest in pre-seed companies—on a startup’s capitalisation table, EchoVC wants to build a pipeline of early-stage portfolio companies that can match the investor funds that target climate, agri-tech and energy in Africa. “Once you get out of the fintech world you really struggle [to raise funds]… like desert work right there, ” Eghosa Omoigui, founder and managing partner of EchoVC told TechCabal on a call. “That was interesting to us because we realised that if you fund founders who are working in those spaces, they are more likely than not to be mission-driven,” Omoigui said. EchoVC’s pilot fund will seek out technology companies that unlock agricultural productivity and market access for farmers. The pilot will also support energy storage and mini-grid technology. In Nigeria and Kenya, the firm wants to especially support e-mobility (motorcycles and auto-rickshaws) and energy solutions. Both countries have large and growing urban populations with poor urban transportation infrastructure. In Nigeria, reliable grid electricity is non-existent, while Kenya’s government has flagged off an e-mobility campaign that has seen electric bus companies like Basigo set up shop in the country. Being the first institutional investor means taking on more risk and waiting for longer periods to realise profit from successful investments. Founded in 2011, EchoVC has deployed roughly $41 million across several funds and returned just about half (to date) from exited companies, per disclosures on their website. In African VC circles, EchoVC is seen as an investor that is both tough in due diligence and willing to roll up their sleeves and get into the weeds of operating a fledgling business with founders. EchoVC is also raising an additional fund which it will use to back the most promising firms from its initial pilot investments. “We anticipate that our learnings from this vehicle will feed into our investments to be made from our larger 2024 Eco Fund,” Omoigui said in a press statement shared with TechCabal.
Read MorePresident Ruto to sign bill that will give tax break to Kenyan startups
The Startup Bill will offer some incentives such as tax breaks and access to credit for startups. William Ruto, Kenya’s President, has confirmed that the Startup Bill 2022, which seeks to provide employment opportunities for Kenyan youth and tax breaks for startups, will be signed into law by April 2024. The announcement was made during the Kenya Innovation Week (KIW), attended by the president and other government officials. “By March, or April next year, we will have a firm startup law in Kenya, which will assist many of our innovators de-risk their innovations and turn them into businesses,” Ruto said in his address. The startup bill has been in the Senate since 2021; it was introduced to the legislative by the current Nairobi governor, Johnson Sakaja. It received its first reading in February 2023 and is currently undergoing further discussions in the Senate. READ MORE: The Nigeria Startup Act has been approved The bill will offer incentives to registered startups, including tax breaks. It further proposes a platform for startups to access information on resources and support. There will be a plan for a credit guarantee scheme to provide financial support and training for startup growth. If passed, the startup bill will also establish a legal framework to boost tech growth, foster innovation, and attract talent and capital. This will involve key roles for national and county governments, such as promoting innovation, facilitating tech transfer, creating jobs and wealth, and connecting research institutions with businesses. Kenya is struggling to offer employment to its large youth population, most of whom are currently jobless. “The youth are the overwhelming majority of millions of unemployed Kenyans,” the president said. Despite the efforts of the SME sector, which has been employing over 80% of the youth annually, one key problem exists—small businesses and enterprises, while crucial in providing job opportunities, struggle to be sustainable as nearly 75% of them close shop after a short period. Amidst scarce job opportunities, Ruto acknowledged that young Kenyans have played an instrumental role in creating startups and successfully closing funding rounds with global firms. “The youth continue to sustain innovation in our economy, with youth-driven startups securing $700 million last year,” the president added.
Read MoreLemFi suspends Ghanaian business after Central bank warning
Lemfi, the remittance startup that raised $33 million in a Series A round in August, has suspended its operations in Ghana one week after the country’s Central Bank said it was operating without regulatory approval. “LemFi users will be unable to send money to banks and mobile money in Ghana,” said LemfFi in a notice to its customers. Lemfi is one of eight remittance companies operating without regulatory approval, Ghana’s Central bank said, warning the public against using the named providers. Ghana’s Foreign Exchange Act allows the regulator to fine companies operating without approval and even prescribes the possibility of imprisonment. While it is unclear when Lemfi launched in Ghana, it named Efia Odo, an actress and influencer, as brand ambassador in January 2023. The company also hired a country manager and ramped up its marketing in Ghana. One source with knowledge of the company’s business said the company will engage Ghanaian regulators, much like it did in Nigeria before it received an International Money Transfer Licence(IMTO). The Central Bank warned the public, commercial banks, dedicated electronic money issuers (DEMI), and enhanced payments service providers (EPSP) about dealing with the listed companies. Other suspended companies by the Ghana Apex bank have We regret to inform you that we are suspending all services to Ghana. As a result, you will be unable to send money to banks and mobile money in Ghana. For many African countries, remittances are an important source of foreign exchange. According to World Bank data, remittance inflows to Sub-Saharan Africa, grew an estimated 5.2% to $53 billion in 2022, compared with 16.4% in the previous year.
Read MoreQuick Fire🔥 with Bemi Idowu
Olugbeminiyi Idowu is the founder and managing director of Talking Drum Communications, a public relations and communications consultancy that supports companies innovating in Africa to shape perceptions and get more effective publicity for the work they are doing. He is an African Tech PR specialist, with extensive experience in leading and delivering successful media campaigns for a wide range of companies – from established global players to Africa-focussed start-ups. What drew you to tech PR specifically? I’ve always been interested in seemingly complex things and the challenge of communicating the value of these things in a clear and meaningful way and this is a skillset that lends itself well to working in technology PR. My technology PR journey started with semiconductors, micro-components and data centres and it was only later that I started working on Software as a Service products and then startups. How do PR strategies differ for global players versus Africa-focused start-ups? PR at its core is basically the same everywhere. It is all about sharing and managing information to shape the perception of an entity. What differs is what the entity is trying to achieve and the context they are operating in. For example, a health tech startup in Europe will typically be trying to tell a very different story from one operating in Africa and success will most likely look different. Our job is to understand what success looks like and do what we can to support our clients in making it happen. One major issue that impacts how PR is done in Africa is the depth of media platforms we currently have. For example, the African tech media landscape is still relatively young and everything falls under the “tech” umbrella. In other parts of the world, you get to work with specialist publications that focus entirely on Information Technology, security, fintech etc. This means you get to tell deeper stories and explore a wider range of narratives for campaigns. What’s the most challenging aspect of your job? I can be quite impatient so this means I am always in a hurry. Dealing with people who don’t have the same sense of urgency can be very frustrating. How do you measure the success of a media campaign? At Talking Drum, we are very particular about understanding what our clients are hoping to achieve with PR and being clear about whether or not PR is the most effective way to achieve that goal. For example, we get some clients talking about using a press release to reach a download target for their app. I’m always quick to say PR can support that goal but it may not be the most effective. We typically see the most impact and ROI from our work when it comes to attracting talent, securing investment, establishing a narrative, brand leadership and stuff like that. These are all results that you can effectively measure and directly link to public relations activities. What’s a common misconception about tech PR? The biggest misconception is that it is just about distributing press releases. I understand where this comes from as press releases are an essential tool in the PR tool kit but there is so much more. There are so many strategies and storytelling tactics that come with PR, as well as different services that a PR professional or business can offer to support businesses in achieving their goals. How do you balance transparency and protecting a company’s interests? From a PR perspective, information should be shared on a need-to-know basis. Our job is to shape a particular perception of our clients and that means we’ll have to be selective about what we share and how we share it. However, it is important to note that this does not mean being deceitful. Honesty and integrity are non-negotiable (certainly for us at Talking Drum). We also have clear standards on the sort of companies we work with so that we don’t compromise our morals and values. What’s a technology trend you think will dominate PR in the next 5 years? Artificial intelligence is the biggest thing for me. I believe tools like ChatGPT and Bard and things like Microsoft Co-Pilot will increasingly take care of a lot of the repetitive administrative tasks associated with PR and free up human hands and minds to make the most of the thinking faculties and deliver more value when it comes to shaping perceptions and supporting organisations and entities to achieve their goals. I know there is a lot of scepticism around AI and the perceived threat to human jobs but history tells us that the impact of technology is always net-positive. I am old enough to remember the days when everything in PR was paper-based – coverage sheets, press clippings etc. Technology has changed all of that and enabled us to do so much more with collating and analysing information to show the value of our work and plan more effectively. In the same way, I believe strongly that artificial intelligence and other emerging technologies will have a similar impact on our industry. What tools or software are indispensable in your line of work? There are a few tools but I don’t want to give away my secrets. However, two tools that I can definitely mention are WhatsApp and Slack . These two can be so efficient for getting things done Especially in Africa where things can move very quickly (when people want to), WhatsApp and Slack make it significantly easier to keep up with the pace of how things are moving without the formality of emails and other channels.
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