👨🏿🚀TechCabal Daily – Zimbabwe digs into lithium
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Before you dive into today’s edition, please take a minute or two to move TC Daily from your Promotions folder into your Main/Primary folder so you don’t miss any of our important coverage. On mobile, click the button on the top-right corner and select “Move”, and on desktop, just drag and drop this email. Thank you! In today’s edition Mercury will close accounts of Nigerian startups on August 22 Zimbabwe to cash in on lithium rush Capital invests $850,000 in two African agritech startups Nigeria directs telecoms to conduct billing audits The World Wide Web3 Events Banking Mercury will close accounts of Nigerian startups on August 22 Mercury Bank caused an uproar yesterday after announcing that it will no longer provide banking services to its customers in 37 countries, including Nigeria. The San Francisco-based digital bank that became a lifeline for African startups after Silicon Valley Bank’s collapse, cited “recent changes in how it determines account eligibility” as the sole reason it is parting with customers in these countries. According to Mercury, these users have only 30 days to find another bank to move their funds—which looks like an unrealistic timeline to move large sums of money from one bank to another, bearing in mind the multi-layered process to go through verification, compliance, and proof-of-fund processes. Founders with Mercury accounts have reacted to the impromptu change on X, slamming Mercury for poor customer service. But for Nigerian founders, the wound cuts deeper. Ngozi Chukwu reported for TechCabal that, “Banks like Mercury have become very important to Nigerian tech startups that raise dollar funding from foreign and local investors.” It is tougher for these founders as receiving foreign payments, or making payments abroad has historically been a hassle. Tried methods in the past with neobanks like PayPal have only led to restrictions due to “local financial regulations”. Despite the mounting frustrations, affected users have swung into action, switching to alternative banking providers like Verto, Cleva or Raenest. One banking-as-a-service founder in Nigeria even rallied founders to build the “Mercury for African businesses” in his post. Other African countries were also affected: The 13 affected African countries include Burundi, Cameroon, DR Congo, and Zimbabwe. Many are on the Financial Action Task Force (FATF) Greylist, adding to compliance concerns. Read Moniepoint’s 2024 Informal Economy Report 7 out of 10 informal business owners borrow money for their business. Click here to find out more about Nigeria’s informal economy and credit. Big Tech Zimbabwe to cash in on lithium rush Lithium, the lightweight metal powering our tech-driven world, is in high demand. From smartphones to electric vehicles, this critical mineral is a key component in rechargeable batteries. The majority of lithium is currently sourced from brine deposits in South America’s “Lithium Triangle”—Chile, Argentina, Bolivia—and from hard rock mines in Australia. As the global push for electrification accelerates, the hunt for new lithium reserves is intensifying. Zimbabwe digs in: Zimbabwe is aiming to cash in on the lithium boom. State-owned Kuvimba Mining House has inked a $310 million deal with unnamed British and Chinese investors to build a lithium concentrator at the Sandawana mine. This facility will be the first step in turning raw ore into lithium compounds, which are further processed into battery-grade materials. The facility is expected to be operational within 18 months, with annual production set at 600,000 tons of lithium concentrate. The agreement is also set to conclude after six years, aiming to solidify Zimbabwe’s position in the global lithium supply chain. Currently, Zimbabwe exports unrefined lithium concentrate, primarily to China for final processing. The new concentrator aims to add value to the country’s mineral resources and create jobs. Kuvimba is also exploring partnerships for its gold mines, seeking $150 million to expand operations. While the project promises economic benefits, it remains to be seen if Zimbabwe can navigate the complexities of mining and processing lithium while ensuring environmental sustainability. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Funding Village Capital invests $850,000 in two African agritech startups Africa has 60% of the world’s uncultivated arable land. For decades this land has not been put to good use. The continent remains a net importer of food due to challenges faced by small-holder farmers who produce most of its food. These farmers need more access to credit for seeds and fertilizers to boost production. They also struggle with an inability to sell their produce due to poor infrastructure and market information; and wastage of food produced due to lack of proper storage and transportation. Agritech isn’t getting enough attention: While tech-driven agricultural startups have put up a fight against these challenges, they have done so with very little funding. Agritech startups on the continent received 4.4% ($95.1 million) and 8.6% ($59.9 million) of the total funding raised in 2021 and 2020 respectively. Village Capital, a global nonprofit organisation focused on early-stage investment is giving two agtech startups new ammunitions to keep in the race. The organisation has backed Aquarech (Kenya) and Coamana (Nigeria), two African tech agritech startups. Both startups will receive $350,000 and $500,000, respectively. What Aquarech does: The startup operates as a B2B and B2C company which offers fish farmers a buy now pay later solution (BNPL) for fish feed. Aquarech also provides training and other precision agriculture tools that help fish farmers learn about best practices and improve incomes. Coamana’s goal: Coamana provides a marketplace, Amana Market, where farmers and traders can sell their products, get loans, and access real-time market prices and purchase requests. Coamana and Aquarech are Village Capital’s latest investments in Africa. The firm which has invested in over 150 startups globally made this investment as part
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How to print your original 2024 JAMB results slip
Getting the original 2024 JAMB results print slip requires visiting specific centres. Unlike previous years, students cannot print these slips remotely or at any cybercafe. The service is exclusively available at JAMB CBT centres and accredited locations, costing 2000 naira. Here’s a step-by-step guide. Printing at an accredited centre 1. Go to a JAMB approved centre: Locate a nearby JAMB CBT centre or an accredited centre. Only these places can assist you in printing your JAMB original results 2024. 2. Bring necessary documents: Ensure you have your JAMB registration slip and a valid identification document. 3. Request the service: Approach the personnel and place your request. Pay the required fee to print JAMB original results Prepare payment: The service to get the 2024 JAMB original results costs ₦2000 fee naira. Have the exact amount ready. Make the payment: Pay the fee directly at the centre. Some centres might accept cash, while others could prefer bank transfers or POS payments. Complete the process Provide your details: Give your JAMB registration number and any other required information to the personnel. Verify information: Ensure the details entered are accurate before proceeding. Receive your results slip: Once processed, the centre will carry out the results printing for you. These slips are not just any kind of slips; they contain electronically verifiable data. Important points to note Check for errors: Immediately verify your printed result slip for any discrepancies. Address any issues with the centre personnel. Final thoughts on how to print your JAMB original results 2024 slips The printed JAMB original results 2024 slips hold electronically verifiable data crucial for tertiary institutions. This data ensures the authenticity of your results, helping institutions verify them efficiently and accurately. Printing your original 2024 JAMB result slip demands adherence to specific steps at designated locations. Ensure you follow the outlined procedure to print JAMB original results 2024 properly. This approach ensures you receive an accurate and legitimate result slip essential for your academic pursuits.
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Nigeria raises benchmark rates by 50 basis points
Faced with intense pressure to control inflation, Nigeria’s Central Bank has raised its benchmark interest rate by 50 basis points to 26.75%. The decision, while in line with market expectations, indicates a decision to maintain a hawkish stance. The median estimate of four economists in a TechCabal survey expected the 12-member monetary policy committee led by Governor Olayemi Cardoso to raise interest rates by 50 basis points to 26.75%. The monetary policy committee decided on a rate hike on the basis of persistent food inflation despite three consecutive hikes. “The committee was mindful of the effect of rising prices on household and businesses and expressed its resolve to take necessary measures to bring inflation under control,” said Olayemi Cardoso, the Central Bank chief at the press briefing of the committee meeting. “It re-emphasises a commitment to the bank’s price stability mandate and remains optimistic that despite the June 2024 uptick in headline inflation, prices are expected to moderate in the near term.” According to Cardoso, these decisions were hinged on the success of the monetary policy in addition to other measures by the fiscal authority to address food inflation. The CBN chief said the MPC committee would continue to tighten rates, as a key tool in addressing inflationary pressures. *This is a developing story Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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iPhone 16 Pro and iPhone 16 Pro Max 2024 specifics
Apple’s forthcoming iPhone 16 series will also include the iPhone 16 Pro and iPhone 16 Pro Max. Their launch is currently touted to be scheduled for September 2024. For the iPhone industry, the new models will offer advanced features, impressive specifications, and a significant leap in battery capacity for the Pro Max variant. iPhone 16 Pro Max specifications The iPhone 16 Pro Max offers the following features: Display: 6.9″ OLED with a brighter, clearer presentation Design: Thinner bezels for a more immersive experience Processor: A18 Pro Chip for enhanced performance Memory: 8GB RAM, ensuring seamless multitasking Camera: 48MP Ultra Wide and 5x Telephoto lenses for superior photography Connectivity: Wi-Fi 7 for faster internet speeds Battery: 4,676 mAh, the highest ever in an iPhone, nearly reaching the 5,000 mAh benchmark typical in many Android devices Other features: USB-C port, Capture button for quick photo access, and Apple Intelligence integration Price: Starting at $1,199 The Pro Max’s battery stands out, significantly surpassing the capacities of its predecessors. This improvement brings it closer to the robust batteries that have long characterised many Android models. Here’s a comparison of previous iPhone battery capacities: 1. iPhone 15 Pro Max: 4,422 mAh 2. iPhone 15 Plus: 4,383 mAh 3. iPhone 13 Pro Max: 4,352 mAh 4. iPhone 14 Pro Max: 4,323 mAh 5. iPhone 15: 3,349 mAh 6. iPhone 14: 3,279 mAh 7. iPhone 15 Pro: 3,274 mAh iPhone 16 Pro specifications The 16 Pro, although impressive, faces criticism for its battery capacity: Display: 6.3″ OLED with a brighter display Design: Thinner bezels for a sleek look Processor: A18 Pro Chip for top-tier performance Memory: 8GB RAM for efficient multitasking Camera: 48MP Ultra Wide and 5x Telephoto lenses for high-quality photos Connectivity: Wi-Fi 7 for enhanced wireless performance Battery: 3,355 mAh, comparable to older models like the iPhone 13 Pro Max Other Features: USB-C port, Capture button for quick photo access, and Apple Intelligence integration Price: Starting at $999 Despite its many strengths, the iPhone 16 Pro’s battery capacity closely mirrors that of older models, such as the iPhone 13 Pro Max. This similarity may disappoint users who expect significant battery improvements in new releases. Moreover, the gap between the 16 Pro’s 3,355 mAh battery and the Pro Max’s 4,676 mAh capacity is notably large, highlighting a missed opportunity for the Pro variant. Final thoughts The iPhone 16 2024 lineup may be a new step forward for Apple, but in actuality and compared to Android contenders, it offers minimal improvement over past models. Apple’s latest offerings will likely continue to drive competition in the smartphone market, especially with the impressive specifications of the iPhone 16 Pro Max specifications
Read MoreVillage Capital invests $850,000 in two African Agtech startups
Village Capital, a VC firm focused on seed-stage startups, has backed Aquarech (Kenya) and Coamana (Nigeria), two African tech agritech startups. Both startups will receive $350,000 and $500,000, respectively, as part of Village Capital’s Reducing Inequalities Investment Facility, backed by FMO’s MASSIF Fund. Aquarech is a B2B and B2C company and offers fish farmers a buy now pay later solution (BNPL) for fish feed. The startup also provides training and other precision agriculture tools that help fish farmers learn about best practices and improve incomes. Hafsah Jumare launched Coamona in 2018 to help digitize farmer management processes. Through its marketplace products, Amana Market, farmers and traders can sell their products, get loans, and access real-time market prices and purchase requests. The startup uses agent networks to onboard farmers and traders into its digital marketplace. The real-time market prices and purchase requests provided on the app allow farmers to make informed decisions about when and where to sell their produce, ensuring they get the best possible crop prices. Coamona and Aquarech are Village Capital’s latest investments in Africa. The VC firm has invested $1.6 million across three startups on the continent. The investment comes as more tech-driven agricultural startups on the continent are bridging the gap between farmers, consumers, and businesses in the agricultural sector. “Village Capital is thrilled to invest in Coamana to catalyze its efforts in building the digital infrastructure for agricultural trade markets across Africa. This investment will drive greater price transparency, efficiency, market linkages, and access to finance,” shared Kavon Badie, Investment Officer at Village Capital.
Read MoreUS Bank Mercury to close accounts of startups in 13 African countries after internal compliance changes
Mercury, a San Francisco digital bank that became the preferred banking partner for African startups after Silicon Valley Bank went under in March 2023, will close the accounts of users in thirteen African countries by August 22, 2024, leaving them scrambling to find alternatives. The new restrictions will affect users in 37 countries. “Due to recent changes in how we determine account eligibility, we are no longer able to support accounts for businesses with associated addresses located in these countries,” according to emails seen by TechCabal. With the new prohibitions, African startups incorporated in Delaware cannot open Mercury accounts unless the founders live in the U.S. While Mercury cited those concerns, it has not helped that some affected countries have been on the Financial Action Task Force (FATF) Greylist since 2023. Countries on the list are subject to additional scrutiny because of deficiencies in money laundering and terrorism financing regulations. “Greylisting adds another layer of risk and complexity to businesses that already perceive Nigeria as a high-risk country for anti-corruption and other financial crime risks,” according to a 2023 KPMG report. FCCPC probe found WhatsApp threatened to delete user accounts, collected excessive data Burundi, Cameroon, Central African Rep, DR Congo, Congo, Liberia, Mali, Mozambique, Nigeria, Somalia, South Sudan, Sudan, and Zimbabwe are the thirteen African countries affected by the restrictions. “Mercury is going zero tolerance on banking companies in sanctioned regions. It is easier to close all Nigerian accounts than to spend extra effort on verifying legitimacy,” an executive at a Nigerian fintech who asked not to be named so he could speak freely, told TechCabal. The restrictions follow the regulatory crackdown on commercial banks in the US that often partner with fintech startups like Mercury, in the wake of insolvency or ledger issues at fintechs Silicon Valley Bank and Synapse. In December 2023, Choice, one of Mercury’s banking-as-a-service providers, overhauled its KYC process due to concerns that partner fintechs like Mercury had lax user onboarding processes and breached money laundering or terrorism financing laws. “About 18 months ago, one of Mercury’s partner banks limited transfers to a ton of countries (including Nigeria, of course) to a $10k limit. So if you wanted to send $300k to Nigeria, you’d have had to do 30 transfers, which would be flagged,” Tomiwa Aladekomo, a media tech startup founder who uses Mercury, told TechCabal. “So the new rule is likely because one of its partner banks has insisted. ” In 2022, without warning, Mercury restricted the accounts of over a dozen tech startups, including those backed by notable American accelerator Y Combinator. At the time, the bank told some users their accounts had been flagged and placed under review by its compliance team due to “unusual activity.” Banks like Mercury have become very important to Nigerian tech startups that raise dollar funding from foreign and local investors. “For startups, if you’ve received capital in the US, it’s easier to keep your capital in dollars in the US and only bring what you need for your operational needs to Nigeria,” Aladekomo said. “You can pay any of your foreign workers directly from the US, which is an easier place to do business with the world from. You can also do treasury management in the US (i.e. earn interest on whatever portion of your money you’re not using) in a relatively predictable economy.” Alternatives for affected startups include Brex, Ramp, Wise or fintechs like Leatherback, Raenest and Graph.
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Next Wave: What next Kenya?
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First published 21 July, 2024 What next Kenya? Since June 18, Kenyans have been protesting against the 2024 Finance Bill and demanding the resignation of President William Ruto. The tax-heavy Finance Bill proposed new levies on bread, motor vehicles, and sanitary towels, among other basics—a move most people felt would make life more expensive in an economy already struggling with high inflation. Until Friday, the majority of Kenyans believed that the protests witnessed in the past month would allow Ruto to reset his fledgling government and win back lost support. These hopes were dashed after he reappointed six cabinet members he dismissed a week ago. Protesters have vowed to continue with the weekly demonstrations to push for reforms in the police, fight corruption, and ultimately force Ruto to resign. While it’s unlikely Ruto will resign, the cash-strapped government will have to give more concessions to the angry youth—like step up the war on corruption and waste of public resources, which Kenyans feel is slowing the country’s growth. T More than ever, Kenyan youth have made it known to the political class that they cannot be ignored. In future, policymakers and the country’s legislature will try to have some public participation in making key decisions and policies. While the constitution requires all laws to involve public participation, the East African nation’s legislature and executive often ignore the public’s views. For instance, in the weeks leading up to June, the parliamentary finance committee sampled views from the public and industry associations on the Finance Bill but failed to review most of the controversial taxes in the Bill. In the coming years, to prevent backlash and a repeat of what has been happening, leaders will accommodate the public’s view completely in legislative decisions. Next Wave Chart on Kenyan Population Distribution. Image | TC Insights Amid public outrage, an important political discourse that could alter how voters elect their leaders has begun. Like in many African countries, ethnic mobilisation is key to winning a presidential election. However, the debate on how the protests have blurred ethnic boundaries and shifted to issue-based politics is too loud to ignore. In the coming elections, issues on healthcare, education, sanitation, employment and infrastructure will be part of politicians’ agendas. This should challenge voting along ethnicity lines used by leaders since Kenya gained its independence in 1963. The issue of debt has also featured in the current protests. Kenyans are asking for fiscal responsibility to help the country manage its ballooning debt. Kenya’s public debt has grown from $15.5 billion (KES2 trillion) to $77.8 billion (KES10 trillion) in under a decade. Philip Kisia, a leadership and governance expert, said it would be hard in the future for the National Treasury to borrow without a clear plan on how to spend it. For instance, Kenya’s auditor-general, Nancy Gathungu, revealed on July 9 that there are no projects to show for $7.7 billion (KES1 trillion) borrowed. Next Wave continues after this ad. GrowthCon is back bigger & better! Come explore proven strategies, tactics & success stories of growth & innovation in Africa via curated masterclasses, workshops & case studies led by top growth leaders. This year also includes the Executive Track, exclusive to business leaders & senior execs. Get your tickets now! Kenyans’ anger is also directed at the International Monetary Fund (IMF) which they accuse of making austerity proposals that affect mostly the poor and slow economic growth. IMF has delayed fresh funding under the Extended Credity Facility (ECF) and Extended Fund Facility (EFF) reform programmes that is meant to help the country manage the debt distress following the unrest. In the last six reviews to monitor the country’s progress on the reforms, the multilateral lender proposed increasing taxes on goods and services to boost revenue targets. However, the IMF has done very little as part of the reforms to push the government to cut spending, which the majority of Kenyans feel is the problem. Given the upheaval that the tax increase proposals have caused, further IMF reviews will likely drop suggestions on raising taxes to improve Kenya’s finances. In the short term, Ruto will survive the biggest threat yet to his presidency. However, the deep-seated issues triggered by the controversial Finance Bill remain. Kenyans are yet to see action on corruption and key governance issues, like appointing state officials based on merit. With Ruto’s move to retain six of the former members of his cabinet which Kenyans had accused of being corrupt and inefficient, the mass protests are likely to continue. Who will blink first? Adonijah Ndege Senior Reporter, TechCabal. Feel free to email adonijah[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone shared it to you here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. As always feel free to email a reply or response to this essay. I enjoy reading those emails a lot. TC Daily newsletter is out daily (Mon – Fri) brief of all the technology and business stories you need to know. Get it in your inbox each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa. If you liked this edition of Next Wave, please share with your friends. And feel free to reply with thoughts and feedback. We welcome those. 18, Nnobi Street, Surulere, Lagos, Nigeria View in Map You received this email because you
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The iPhone 16 series is coming
Apple’s next phone release is closer than ever. It will be the iPhone 16 series 2024. This article delves into the expected features, launch dates, and improvements consumers can look forward to in the new device. Key expected features of the the iPhone 16 series The New iPhone 16 potentially boasts several advancements designed to enhance user experience. Key features include: Faster charging: The new iPhone 16 supports 40W wired charging, a significant upgrade from its predecessor. This ensures quicker recharging times, addressing a long-standing consumer demand. Improved battery life: Reports suggest enhanced battery performance, promising more prolonged usage between charges. Enhanced camera system: The new model will likely feature an upgraded camera. Launch dates Apple typically follows a consistent release schedule for its new devices. The new iPhone 16 is expected to be announced in early September 2024, with pre-orders starting shortly after. Consumers can anticipate the following timeline: Official announcement: Early September 2024 Pre-orders: Mid-September 2024 Release: Late September 2024 Software updates Apple plans to introduce new software features alongside the iPhone 16 release in 2024. These updates will enhance the device’s functionality and user interface. iOS 18: The latest operating system will come pre-installed on the new iPhone 16 2024, offering new features and improved performance. AI integration: Apple aims to integrate more artificial intelligence capabilities into its devices. While full implementation may extend into 2025, initial AI features will be present in the new iPhone 16 in 2024. Benefits and improvements The New iPhone 16 brings several benefits over previous iPhone models, including: Increased efficiency: The new device offers faster processing speeds, making multitasking smoother and more efficient. Advanced security: Enhanced security features that ensure better protection for user data. User experience: Improved interface and functionality that make the device more user-friendly. Final thoughts on the iPhone 16 series coming Unfortunately, most of the features Apple is introducing in its forthcoming iPhone 16 series are already in existence with Android counterparts like Samsung, in better versions, to be candid. As expected, the new iPhone 16 will come in Pro and Pro Max models as Apple looks to improve its mobile device brand.
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👨🏿🚀TechCabal Daily – How Namibia is boosting its fintech ecosystem
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Riders in Kenya may be facing another hard week, after last week’s five-day strike by Bolt and Uber drivers. The drivers are planning to protest again tomorrow, Wednesday, as the last protests didn’t exactly drive home the point to the ride-hailing companies. In addition to being included in pricing decisions and reduced commission rates, the drivers are also asking for a dedicated 24-hour customer care line. A speedy resolution isn’t on the horizon as the companies say they’re “monitoring the situation” and “following the due process.” In today’s edition Copia’s co-founder, Tracey Turner, registers new startup in Kenya FCCPC explains its $220 million Meta fine How Namibia is boosting its budding fintech ecosystem Flat6Labs to launch $85 million Africa-focused fund How much did energy startups raise in Q2 2024? The World Wide Web3 Events Startups Copia’s co-founder, Tracey Turner, registers new startup in Kenya The train tracks may have been stripped out from under Copia Global, but Tracey Turner, co-founder of the fallen e-commerce giant is making a swift comeback to Kenya’s consumer market. Turner has registered a new company that will focus on household item deliveries in Nairobi and its suburbs, said people familiar with the matter. It will begin operations as early as September. Interestingly, investors are circling, cash in hand, eager to back Turner’s new venture. What makes her so investable? Turner is a serial founder with a good track record. Before Copia—which was big business in Kenya—she founded MicroPlace, a micro-investment platform that was acquired by eBay in 2006. Statistically, repeat founders with no exits are still likely to raise funding for a new venture quicker than first-time founders. Turner’s educational pedigree (including a Stanford MBA) and previous work experience also stand her out. Again, her new venture targets Kenya’s familiar consumer market. This familiarity with the target market, geography, and business model will possibly help build network effects and scale fast, attracting investors who see the potential. The road ahead: However, as she re-enters the commerce market, Turner faces competition from now-established players like Jumia Kenya, Carrefour, and an unexpected contender—social media. Small business owners are increasingly using platforms like TikTok and Instagram to sell online. Till today, the jury is still out on why Copia was unable to raise additional funding. One insider suggests leadership issues, stating, “[Copia CEO] Tim was let down by his team.” Read Moniepoint’s 2024 Informal Economy Report 7 out of 10 informal business owners borrow money for their business. Click here to find out more about Nigeria’s informal economy and credit. Big Tech WhatsApp’s take-it-or-leave-it privacy policy behind FCCPC’s $220 million fine Last week, Nigeria’s consumer protection body placed a $220 million fine on Meta for data privacy violations. Meta has since rejected the decision. What Meta did wrong: At the heart of the matter was an investigation into WhatsApp’s updated privacy policy in 2021. There were claims that WhatsApp wasn’t giving users a say on how their personal data was collected and used Yesterday, the FCCPC released a 116-page document explaining its charges against Meta. We know you don’t have the time to read all of that so we did it for you. The regulator claimed WhatsApp did not allow users to opt out of the 2021 policy. The FCCPC also found that an early version of WhatsApp policy mandated users to either accept the policy or be kicked off the platform. “The 2021 update was sent to users through frequent pop-ups asking them to accept the privacy policy. While there was an arrow that allowed users to dismiss the pop-up, they could not opt out or reject the update. If users refused to update their apps, the pop-ups became more frequent, and many users lost the ability to read or respond to chats,” writes Muktar. The regulator deemed this move by WhatsApp—which has a 65% market share in Nigeria—as anti-competitive. Meta is treating Nigerians differently: The regulator also found that WhatsApp presented Nigerian users with a different privacy policy from European users. While the 2021 privacy policy update meant that users’ data could be shared with third parties, WhatsApp did not require third parties to obtain user consent before accessing shared user data. If you had given the FCCPC a flack over the issue, you might want to reconsider your stance. While you’re at it, we’ll wait for Meta’s appeal of the FCCPC’s decision. Join Fincra at API Conference on July 20, 2024 Calling all devs!! This is your chance to dive deep into Fincra’s extensive suite of payment APIs and accompanying SDKs. Come and see how you can build your next big idea with easy-to-integrate APIs. Reserve your spot here! Ecosystem How Namibia is boosting its fintech ecosystem Leonie Dunn, Namibia’s deputy central bank governor, spoke with TechCabal about her country’s plan to boost its relatively small fintech ecosystem, which has only 20 startups, like PayToday and PayPulse. “Regulators need to evolve with the fintechs. We need to be able to catch up.” What has the Central Bank done to help the country’s fintech ecosystem? We’ve done a lot in Namibia to create an enabling policy and legislative environment. We have enacted a whole host of new laws in 2023, to enable what we call open finance, and also to enable fintechs to thrive. We’ve adopted a fintech regulatory framework which has been operational since 2021 and created a regulatory sandbox where our fintechs can help create a regulatory outcome that will benefit the fintechs and what Namibia needs. What we are trying to achieve is not to stifle the innovation they bring to the market but rather to co-create a solution where our regulatory environment doesn’t feel threatened by the innovations but rather is complementing the innovation happening. What does a fintech need to do to get a license in Namibia? It is about the bankability of the product for us as regulators. How will the product affect our
Read MoreFCCPC probe found WhatsApp threatened to delete user accounts, collected excessive data
On Friday, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) handed down a surprising $220 million fine to instant messaging app Whatsapp after a three-year investigation alleged that the company’s privacy policy was “foisted” on users. Meta rejected the regulator’s decision, and Nigerians, who view such actions as shakedowns, received it with skepticism. The FCCPC has now shared a 116-page document detailing the charges against WhatsApp and Meta, the company’s rebuttals, and the investigative process. The core of the investigation is an updated WhatsApp privacy policy sent to users in May 2021. The FCCPC argues that WhatsApp did not allow users to opt out of the policy and presented them with a different privacy policy from European users. Meta deleted previous versions of the policy and attempted to mislead in its submission, the commission claimed, Crucially, an early version of the policy, which was later deleted, told users they could either accept or be kicked off the social media platform, FCCPC showed. The commission found WhatsApp’s “my way or the highway” stance anti-competitive. While the commission cited WhatsApp’s market dominance—65% of Nigerian internet users are on WhatsApp, while 28% use Facebook, per an independent survey cited—it argued that even if it did not have such market power, WhatsApp’s actions violated customer rights. Why the 2021 privacy policy is a big deal The 2021 update was sent to users through frequent pop-ups asking them to accept the privacy policy. While there was an arrow that allowed users to dismiss the pop-up, they could not opt out or reject the update. If users refused to update their apps, the pop-ups became more frequent, and many users lost the ability to read or respond to chats. The 2021 update, which told users it would share their data with third parties and Meta for marketing and profiling purposes, had important implications. One key change was that the 2021 privacy policy did not require the third parties it shared user data with to seek permission from the users. In Whatsapp’s 2019 and 2020 privacy policies, users were told their information would be shared with third-party providers who were required to “use your information in accordance with our instructions and terms or with express permission from you.” FCCPC says Meta treated Nigerians differently from Europeans “[The] Privacy Policy essentially compelled [users] to waive their right to self-determination and control processing and use of their personal data, and object to the sharing of such data with third parties, including Facebook companies,” the commission said in its report. The commission found this particularly worrying because of the amount of data collected by the Meta-owned messaging app. “WhatsApp collects 44 metadata points, Signal collects 4, and Telegram collects 4.” “Remarkably, Meta parties cannot establish there are any unique, or key features of the service that materially differentiates the services to a point where it is impracticable to provide the service offered without the collection of such additional data,” the FCCPC concludes. While Nigeria’s data protection laws offer a similar level of data protection as European laws, Meta failed to offer users in both jurisdictions the same amount of privacy protection or information on the metadata that they requested, the use of the metadata, and how to use WhatsApp without accepting the policy. An excerpt from the privacy policy shows that consenting users agreed for their data to be used for profiling and marketing. The commission found that in the European privacy policy, the word ‘consent’ is mentioned at least ten times, but only once in the Nigerian version. European users also had an entire section dedicated to their rights and consents, while Nigerian users did not have similar privileges.
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