- July 5 2023
iPhone 15 series release; 6 things to know
Rumours of the iPhone 15 series have already been circulating online as we edge closer to Apple’s highly anticipated yearly September announcements. Talks from different quarters suggest Apple may introduce new, limited-edition colours for the iPhone 15 Pro and the regular iPhone 15. Here is all we know about the rumoured release, such as the promised features and when we may expect to see them. 1. Predicted features and upgrades for the iPhone 15 The gadget is likely to have Apple’s Bionic A16 chipset, which was used in the iPhone 14 Pro last year. This is consistent with the company’s recent practice of selling flagship phones at reduced prices a year after their initial introduction. Therefore, the next generation of models should adopt a similar strategy. Since the iPhone 15 Pro and 15 Pro Max are expected to be Apple’s flagship devices for the year, they are a probable candidate to ship with the company’s new Bionic A17 processor. 2. Camera expectations Speaking of pictures and videos, the base models of the iPhone 15 series may include 48-megapixel cameras, identical to those found in the previous iPhone variants. This would be a significant upgrade from the existing 12-megapixel sensors in existing iPhones. Optical zoom with a telephoto lens and LiDAR technology, on the other hand, may be unavailable on base versions of the iPhone 15 and found only in more expensive variants. There have been rumours that the iPhone 15 Pro Max model’s camera module has been upgraded with periscope lenses that provide 5-6x optical zoom, in addition to more sensors. 3. Battery life As of yet, information regarding the battery and its charging capabilities is unavailable. Considering that even the most affordable Android phones offer rapid charging speeds of at least 30W, Apple would be wise to include such capabilities. However, iPhones only support 20W technology, whereas phones costing under $400 already offer 80W fast charging, resulting in longer durations to achieve full battery capacity. 4. The iPhone 15 series will likely not include a charger Starting with the release of the iPhone 12 series, Apple has not included a charger in the retail packaging of its iPhones. This trend is expected to continue with the release of the iPhone 15 series. 5. Colours Both 9To5Mac and a reliable tipster on Weibo have reported that the iPhone 15 Pro will come in an exclusive “crimson” colour option. There will also be a very deep crimson option. In addition, a new green colour option for the regular iPhone 15 is rumoured to be in the works, with Apple reported to be aiming for a tint “close to the green of the iPhone 12 and iPhone 11”. However, as this is not yet confirmed by Apple, therefore readers should treat the news as a rumour. 6. Timeline and final thoughts for the iPhone 15 series release Based on the timing of previous Apple product launches, we should expect the new iPhone 15 series to be unveiled in September of this year. There have been no rumours or leaks to suggest that the launch will be delayed; nevertheless, in case of unforeseen circumstances, the debut could be pushed back until October. Regardless, we anticipate an announcement of the iPhone 15 series anytime from September, which is less than two months away.
Read More- July 5 2023
EXCLUSIVE: Inside Union54’s mission to build ‘ChitChat,’ a WeChat for Africa
A conversation with Perseus Mlambo, co-founder and CEO of Union54, about ChitChat, the startup’s recently launched social commerce platform. Eleven months after Union 54 halted operations amid an attempted $1.2 billion chargeback fraud, the Zambian fintech startup is launching ChitChat. The new product is a social commerce platform and is the result of a collaboration between Union 54 and Mastercard. ChitChat lets users chat on an encrypted platform; they can also send money to each other, get a USD debit card and buy items from digital storefronts on the app. ChitChat sounds a lot like China’s WeChat and Union 54’s founders will certainly be hoping they can find similar success with the new app. TechCabal caught up with Perseus Mlambo, co-founder and CEO of Union54, to learn more about the origins of ChitChat, its mission to revolutionise fintech in Africa, what challeges and opportunities the platform anticipates in the market, and much more. TC: Can you give us some background on ChitChat? Perseus Mlambo: What we’re developing is a social commerce platform because we realised that there’s a lot of businesses in Africa. And all of these businesses might have some digital exposure, like they might have a Facebook or a Google page, but for the most part, they’re not actually transacting on those platforms. So what we have done with ChitChat is to develop an app that allows people to chat to each other, as well as to pay each other and get access to MasterCard debit cards. Our thesis is that if people are already speaking to each other, then it’s easy for them to discover new trades or new business opportunities in their community. So the best way to think about ChitChat is a WeChat but for Africa. In short, its a place where social commerce meets payments. We think that we can give more people an opportunity to monetize their products or their services, especially in their local communities because what we have built here, you’ll be able to discover a businesses near you. If you’re a business, you’ll be able to have an account where you can list your products or your services, your opening hours, you can chat to your customers directly, and you can get paid directly in the app. So this means that most smaller businesses who don’t currently have a website will be able to actually increase their customer base because chit chat is giving them that product discovery or that customer discovery opportunity. TC: Is the ChitChat platform currently available for download? We are starting with internal testing which is happening in a couple of weeks. So the ChitChat family, including Union54 employees and our partners, will start testing out in a few weeks and then after that, we want to increase our testing base. We’re going to be testing out in Zambia first because it’s our domestic market where we’ve got the home advantage. And then if all things go well, a month and a half after that, we want to roll out to Angola, and then Tanzania, and Uganda. We selected those countries, because they present very different opportunities. In Angola, you’ve got a different language. In Tanzania and Uganda, you’ve got some common linkages we have identified and in Zambia, obviously, we’ve got the domestic advantage. So in essence, we chose those countries because they provide as near as possible to what a full rollout would be. What we’re really planning here is something that we haven’t done before because we primarily have got B2B experience. When we start rolling out to additional markets, apart from those pilot countries, we just want to really have an opportunity to engage with consumers. We plan to roll out a very unique campaign that explains our proposition, simplifying the onboarding, as well as giving people a preview of what’s to come when the network effect of ChitChat is realised. So we are really excited about that because I haven’t seen anybody else do something similar in the past. All in all, i think the platform has really interesting challenges as well as opportunities that fintech can unlock if they do it correctly. TC: What problems or painpoints does ChitChat directly address? Right now, there’s a number of problems that we’ve identified. To begin with, for people in Zimbabwe, or for people in Zambia, or anywhere in Africa really, who mainly receives support via remittances, it is really expensive to do that. So what we have done with ChitChat is to do various integrations to allow people to use ChitChat to send money internationally to over 150 countries, whether it’s sending from ChitChat to a bank account in the Netherlands, or to a bank account in Indonesia, or to a bank account in Botswana, or to send from Chitchat to any mobile money provider anywhere in the world. What that does is to bring that remittance experience closer to the people who actually receive the funds to the people who are sending them. So no longer do you have to go to a bank and I’m glad that we’ve been able to do that because this something that I use every day so I know the experience. Secondly, for people who are living in Africa right now and other emerging markets, I think the main problem that we’re trying to solve for them is to allow them to be able to meaningfully participate in their local communities. So the example that I gave earlier with a small business selling at a shop, that shop is not connected on the internet, yet people who walk past that shop every day know that if I want to go buy batteries, for example, I’m gonna go to the shop two minutes away from me. To enhance that experience, what can happen is that those shops can open a ChitChat account, take pictures of their products, and then they can target a market, which is maybe a 10km to 15km radius around them. What
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- July 5 2023
TechCabal Daily – Tunga’s Transatlantic Talent Trade
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We’re one day away from the launch of the new Twitter. ICYMI: Mark Zuckerberg and the Instagram team are launching Threads, an Instagram App, on July 6. We don’t know much about the app yet—except that it’s unsurprisingly unavailable in Africa yet—and that it’s Instagram…but with text instead, not photos. Users sign up using their Instagram account and just chat away. You know what they say: competition makes the heart beat faster, who knows if this is all the motivation Musk needs to make Twitter the super app he needs it to be. In today’s edition Tunga is exporting Africa’s tech talents to the Netherlands DStv and GOtv prices jump in Kenya South Africa’s new TV rules say less ads Crypto platforms in SA now need licences The World Wide Web3 Event: TC Twitter Space Opportunities Economy The Netherlands backs Andela-like Tunga to export tech talent The Netherlands wants to export Africans…but in a good way. Many European countries are suffering from a shortage of developer talent. Tech Impact Africa (TIA) a project backed by the Netherlands is training software developers in Nigeria and connecting them to global employers through a staff augmentation firm Tunga. Image source: Zikoko Memes Global employers? Reportedly, 38% of Africa’s 716,000 developers work for at least one company headquartered outside Africa. Tunga has been connecting tech talent in Nigeria, Uganda, and Kenya to such employers for about six years. It claims to have over 1,500 software developers in its community. A win-win situation: In addition to the availability of talent,it is also more cost-effective to hire from Africa. The conversion of hard currency to local currency makes talent more affordable. On the other hand, it offers opportunities for senior developers who are looking for globally competitive salaries. Everyone wins! Zoom out: African countries are also rising to the challenge of producing skilled tech talents. 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 programme to build a workforce of tech talents. Similarly, Nigerians affected by the country’s problematic academic system are looking towards alternative learning platforms like AltSchool and Semicolon to acquire tech skills. 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. Streaming MultiChoice raises DStv and GOtv prices in Kenya Starting August 1, 2023, TV subscription prices will skyrocket in Kenya. MultiChoice announced its third round of price hikes for its DStv and GOtv services in Kenya. Image source: Tenor The new subscription prices: DStv’s Access plan will see an increment from Ksh 1,250 ($8.8) to Ksh 1,300 ($9), while the Family plan will increase from Ksh 1,750 ($12) to Ksh 1,850 ($13). The Compact plan will be adjusted from Ksh 3,300 to Ksh 3,500, while the Compact Plus plan will increase from Ksh 5,900 ($42) to Ksh 6,200 ($44). Furthermore, the Premium plan will also be increased from Ksh 9,500 ($68) to Ksh 9,900 ($70). As for GOtv, the Max Bouquet will experience an increase from Ksh 1,350 ($9.6) to Ksh 1,450 ($10.3), and the SUPA bouquet will be adjusted from Ksh 1,750 ($12) to Ksh 1,900 ($13.5). ICYMI: in August 2022, the entertainment company added Ksh 500 ($3.55) to its DSTV Premium package. In March 2023, MultiChoice again raised prices by 10% to meet up with rising “operational costs”. The change took effect on April 1. The big picture: This time, Inflation and costs force Multichoice to raise prices, impacting Kenyans who rely on DStv and GOtv for entertainment. As Netflix and HBO commence a content deal, consumers will have an expansive selection of paid-TV providers. If these providers can deliver a competitive service at a lower price point, they have the potential to attract a considerable portion of MultiChoice’s subscriber base. This could break MultiChoice monopoly in many African countries, including Kenya. Media South Africa introduces new TV advertising rules South Africa’s TV advertising regulation is out with the old and in with the new. The Independent Communications Authority of South Africa (ICASA) has released updated regulations for advertising, infomercials, and sponsored programmes broadcast on the country’s airwaves. ICYMI: The old regulations which have been in effect since April 1, 1999, are now overridden by ICASA’s updated rules. These new rules apply to licensed broadcasters, including prominent players such as the South African Broadcasting Corporation (SABC), E-tv owner, eMedia and DStv owner, MultiChoice. Failure to adhere to the regulations may lead to fines of up to 1 million rand ($53,392). No long ads: The new regulations want to make sure South African viewers are getting their money’s worth. Image source: Zikoko Memes Section 5(1) of the gazette states that a broadcasting service licensee (BSL) must not transmit any infomercials during prime time or during the transmission of, or in breaks during the transmission of, any children’s programme. Section 5 (3) further states that no channel may transmit infomercials for more than two (2) cumulative hours during the performance period on any one day. Additionally, Section 6(7) states that product placement in programming other than news and current affairs shall be subordinate to the content of the programme material. The new regulations will go into effect within six months. 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 at 15% off. Use the discount code “TIX15”! Legislation SA to require licences for crypto exchanges Image source: Further Africa Yesterday, the country’s Financial Sector Conduct Authority (FSCA) announced that crypto exchanges in the country will need to obtain licences if they want to continue to operate. The FSCA has set
Read More- July 4 2023
How African startups can become media-savvy
Noel K. Tshiani, founder of Congo Business Network, has steadily emerged as a prolific voice for startups from the Democratic Republic of Congo. His insights and perspectives have graced a variety of media platforms, including radio and television broadcasts, as well as a number of influential magazines. And through written interviews with entrepreneurs from Kinshasa for various media outlets, he has worked diligently to equip these budding businesses with essential marketing, branding, and communications skills. What was the goal? To enable these startups to navigate the media landscape and become media-savvy. The African tech ecosystem has undergone significant transformation over the past five years, with startups springing up across the continent to solve problems ranging from financial inclusion to improving agricultural yields and increasing access to healthcare. As these startups grow, adapt and scale their operations, there is an increasing need for them to become media-savvy, both locally and internationally. Becoming media-savvy is no longer a luxury, it is a necessity and a competitive advantage for entrepreneurs. Below, I will discuss the key aspects of media literacy that make it an essential skill for African startups in the digital age. Increasing visibility in a competitive market The first reason for African startups to be media-savvy is visibility. In the age of information overload, standing out in a sea of competitors is no easy task. Startups need to ensure that their story is heard and understood by potential investors, customers, partners and even regulators. By leveraging the media—whether traditional outlets, social media, or emerging platforms such as podcasts—startups can amplify their voices and gain the attention they need to succeed in Africa. Shaping the narrative and controlling the message The second reason is narrative control. Startups operate in an environment that is often misunderstood or misrepresented. As a continent, Africa still struggles with stereotypes and misconceptions. Although Africa is home to six of the ten fastest growing economies in the world, the continent still struggles with entrenched stereotypes and misconceptions. By actively seeking positive media coverage, startups can challenge these narratives and create a better image of innovation on the ground in different countries. They can communicate their vision, highlight their successes and provide clarity about their operations, thereby shaping public perception. Attracting investment and building partnerships Investors and partners are essential to the growth of technology startups such as fintechs. Being media-savvy helps startups get on the radar of potential investors. By showcasing their solutions, growth trajectory and impact, startups can attract the financial backing and strategic partnerships they need to reach the next level. Regular media coverage helps build trust in the startup and its team, making it easier to attract the attention of institutional investors in Europe and the United States. Managing crisis and protecting reputation In a hyper-connected world, a crisis can escalate quickly and cause significant reputational damage. Media-savvy startups are better equipped to handle these situations. They can communicate quickly and effectively on Twitter, LinkedIn, and Facebook to take control of the narrative and mitigate the fallout. Increasing user engagement and customer acquisition Media-savvy can help startups increase user engagement and customer acquisition. With the right messaging and a well-developed media strategy, startups can reach their target audience, create awareness for their products or services, and ultimately drive growth that leads to profitability. In conclusion, the importance of media-savviness for African startups cannot be overstated. As they continue to innovate and challenge the status quo, a solid understanding and strategic use of media will be required to achieve success. It is a skill that needs to be cultivated and prioritised, not as an afterthought, but as a fundamental part of their growth strategy once the business is up and running. From attracting investment and partners to managing crises, shaping narratives and driving user engagement, the benefits are far-reaching. Now is the time for African startups to step into the media spotlight and let the world know about the incredible innovation happening on the continent.
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- July 4 2023
How Netflix and HBO’s partnership could mean trouble for Showmax
As Netflix and HBO commence a content deal that would see popular titles like Insecure and Ballers come to Netflix, Showmax, being the exclusive provider of HBO content in Africa thus far, has a reason to be worried. According to a report by Deadline, Netflix has started streaming several popular shows from HBO after it struck a deal with the network’s parent entity, Warner Bros. Discovery. With the new partnership, all five seasons of Insecure are now available on Netflix. Other shows like Six Feet Under, Ballers and Band of Brothers are also coming to Netflix. It’s the first time that Netflix will offer HBO TV shows, which are generally exclusive to Warner Bros. Discovery’s Max service or Netflix rivals. Warner Bros. Discovery CEO David Zaslav had signaled early in his tenure that he is open to forgoing exclusivity and license content to boost the bottom line. This development should worry Showmax, Multichoice’s bet in the streaming space. Showmax and HBO exclusivity deal Since 2020, Showmax and its sister product, DStv, have had the exclusive rights to broadcast and stream HBO shows in South Africa and their other markets. Through the deal, Showmax subscribers could watch HBO releases like Game of Thrones and Westworld immediately after they air on MNet, DStv’s entertainment channel. But with House of Dragons, another HBO offering, Showmax offered it to subscribers a full two months after it aired on MNet. This move infuriated subscribers and stoked speculation that the streaming platform was unwilling or unable to pay for early streaming rights to the series, according to MyBroadband. Despite being a global hit, House of Dragons performed poorly on MNet, bringing in only 7,701 viewers, or 2.75% of subscribers on DStv Premium, according to data from the Broadcasting Research Council of South Africa (BRCSA). In contrast, in the US, WarnerMedia announced the series had its largest-ever premiere for HBO and HBO Max in the US, racking up 9.986 million viewers, while in the UK and Europe, Sky also revealed the show had the best debut of any US program, pulling in 1.39 million viewers on its first day. No exclusivity, no party for Showmax In April, Multichoice announced a partnership with US media giant COMCAST, owners of NBCUniversal, and its UK counterpart SKY to create “Showmax 2.0,” a new platform powered by Peacock and 70% owned by Multichoice and 30% (stake sold for $30 million) owned by the aforementioned UK and US partners. Showmax 2.0’s ownership and content structure (Image source: Multichoice) Content-wise, Showmax 2.0’s success is mainly hinged on the exclusive streaming of content from SKY and COMCAST and third-party providers, including HBO and WarnerBros. With the latter striking deals with Netflix, some of this content may no longer be exclusive to Showmax in Africa. If SKY and COMCAST strike similar deals with Netflix, it could spell trouble for Showmax 2.0’s entire business model, a product that Multichoice is investing in for the foreseeable future. When TechCabal reached out to Showmax about the development and how it will impact the streaming platform, it stated that the agreement between Netflix and HBO would not affect its current offering. “There are no changes coming to Showmax. HBO shows will continue to be available on Showmax across Africa, including 2023 hits you can’t stream anywhere else like Succession, The Last of Us, and Barry, and express titles like The Idol, Warrior, The Righteous Gemstones, and Winning Time: The Rise of the Lakers Dynasty, which launches on 7 August,” said Yolisa Phahle, CEO at Showmax. According to its annual results for the year ended 31 March 2023, Multichoice is doubling down on its streaming bet, Showmax, with the company choosing not to issue shareholders dividends. Instead, it will continue investing in the streaming platform. “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. On its financial results booklet, Multichoice mentions DStv, its core product, only seven times, compared to the twenty times it mentions Showmax, perhaps pointing to how much the company is betting on the success of the platform as the last straw to keep the company from going under. Meanwhile, French broadcasting giant Canal+ continues its steady purchase of Multichoice’s ordinary shares, now owning 31.7% of the company, about 3% away from the 35% stake, which would require Canal+ to make a mandatory offer for Multichoice.
Read More- July 4 2023
Exclusive: Kyosk’s acquisition of KwikBasket is a bet on increasing its digital distribution
Kyosk, a digital distributor, has acquired KwikBasket to keep its talents in-house. However, how does it differ from Twiga Foods? Kyosk, a digital distribution platform, has entered the African fresh produce market with its Farm and Fresh business line. This follows its acquisition of KwikBasket, a player in agricultural distribution. Kyosk specialises in online retail distribution, employing a digital-first approach and data-driven insights to boost efficiency and connectivity in the supply chain. Kyosk‘s business model Kyosk launched in Kenya in November 2019. According to its CEO and co-founder Raphael Afaedor, Kyosk helps help mom-and-pop shops and small-scale farmers access the right services to improve their yield. The company also helps dukas (small shops) and kiosks get access to supplies, which they can then sell to their end customers. “Our business enables them to get access to the market.” In 2020, Kyosk began expanding across Kenya, and by 2021, it increased its footprint to 42 locations across Uganda, Tanzania, and Nigeria. “If you go Abuja or Port Harcourt, you will find us there,” says Afaedor. Increasing Kyosk’s value chain Kysoks is leveraging backward and forward integration by expanding its operations over the supply chain in two primary ways. Firstly, Kyosk has rebranded its internal product, uLima, as KyoskFarm, to broaden the reach of KyoskFarm beyond Kenya. The primary goal of KyoskFarm is to enhance farmers’ productivity and yield. “We are helping farmers access services such as fertilizer, credit, and micro-insurance, among others,” said the CEO. Secondly, Kyosk also announced another product, KyoskFresh, which will market the farmers’ output. “KyoskFresh will be key to getting produce from farmers to commercial kitchens, local eateries, and kiosks that sell fresh produce,” clarified Afaedor to TechCabal. Kyosk has acquired KwikBasket to leverage its expertise and network in sourcing produce from farmers and supplying it to commercial kitchens, thereby enhancing Kyosk’s operations in the fresh produce supply chain. This integration decision allows Kyosk to benefit from KwikBasket’s knowledge and connections, enabling the startup to strengthen its ability to source produce from farmers and supply it to commercial kitchens. “We acquired them for that competence and have the function in-house. Kyosk is very good at operations, with 11,000 deliveries happening daily. We have been able to scale the business across 42 territories across four countries,” added the CEO. How does this model differ from Twiga’s? Kyosk’s business model is similar to Twiga’s. But there are three crucial differences. First, Kyosk primarily targets small-scale farmers, while Twiga focuses on commercial applications and services. Secondly, Kyosk extends its distribution beyond produce, covering other products for kiosks. For example, they plan to introduce the distribution of electronics and pharmaceuticals to dukas. Another notable difference is that while Twiga uses contractors as distribution and customer relations agents who are not full-time employees and can be dismissed for underperformance, Kyosk employs permanent agents. “I won’t say that our model is the same as Twiga. We are focused on small-holder farmers and dukas, because what you find out is that 70% of agricultural produce from Africa is actually from small-holder farmers,” the CEO told TechCabal. How has Kyosk funded the venture? Kyosk admits it is funded but is not open to divulging financial details. “We have raised money, but we just haven’t been announcing. The details are internal for now, but I can tell you that we are arguably the biggest digital distributor across the continent,” boasted the CEO. Nonetheless, Kyosk’s biggest backers are ETG and Mitsui. The firm also has two other investors. Kyosk also purchased KwikBasket from TechnoBrain, which offers IT solutions. Afaedor concluded, “This acquisition marks a major milestone for Kyosk as we broaden our footprint in the fresh produce market in Africa and enhance our offering to cater to the needs of farmers, retailers, kitchens, eateries, and other consumers.”
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- 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.
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