- July 26 2023
Central Bank’s decision to unfreeze the account of firms illegally trading forex may signal new beginning
Nigeria’s central bank unfroze the accounts of some firms “illegally trading” in foreign exchange in Nigeria. It could symbolise new beginnings Two years ago, the Central Bank of Nigeria froze the accounts of companies offering Nigerians access to securities and investment options in both local and international markets. It accused them of engaging in “illicit forex transactions” and vowed to investigate them. Consequently, the CBN ordered banks to block the accounts of over 400 companies. Some of the companies affected included tech startups like BetNaija, RiseVest, Bamboo, Chaka, Trove, Fliqpay and Yellow Card. A reversal of earlier stance Less than 24 hours after the acting CBN governor, Folashodun Shonubi, and Emefiele’s replacement raised interest rates to 18.75%, banks were told to lift the restrictions on the bank accounts of 440 individuals and companies. Two experts who spoke to TechCabal said the apex bank reversal of its earlier stance is a means of bridging a gap where foreign investments can flow into Nigeria. An analyst at Meristem Securities Limited, Fifunmi Laosebikian said the CBN is trying to be flexible while reducing barriers for trade. “Some of these firms bring foreign exchange to the country and it is important that they keep that path open,” he said. Bright Enabulele, a cryptocurrency expert believes collaboration can lead to the establishment of clear and comprehensive regulations that protect consumers, foster market stability, and promote responsible growth. While both experts seek harmony between both the CBN and the companies offering Nigerians access to securities and investment options in both local and international markets, patience is key in looking forward to how both sides will play.
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- July 26 2023
Triggerfish wants to take African stories to the world through animation
Feat after feat, Africa is demonstrating that its stories are for the world to hear. Triggerfish, an animation company, is making this happen through Africa-centred stories.Netflix just released Supa Team 4, its first-ever original animated African series. This is a win for Malenga Mulendema, the Lusaka-based writer and creator of the show. Mulendema’s achievement adds to the growing buzz around Africa-centred animated stories, which, in recent years, have attracted significant global attention. Supa Team 4 is produced by Triggerfish, a South Africa-based company on a mission to export African stories to a global audience. “With world-class storytelling, we are building bridges that connect Africa to the world,” said Stuart Forrest, the company’s CEO. Triggerfish has existed since the ‘90s, but not with the African focus it has today. The business went through a redefining moment in the early 2000s, when advancements in technology began to redefine mainstream animation. The stop-frame animation technique, Triggerfish’s forte, gradually gave way to more sophisticated computer-generated (CG) animation, which almost forced the company out of business. This situation presented Forrest, then an employee, with the opportunity to buy the business to keep it afloat. He did, and later partnered with Mike Buckland, an animator who had been working in Africa at the time. The duo would later relaunch the company as a CG animation studio with a focus on telling African stories. Following the money Money is to dreams what gas is to cars, many have argued. For Forrest and his team, the move to double down on Africa was not—like many business owners in Africa would say—born out of some idealistic passion to “make the continent a better place”. Triggerfish wanted to tell big stories, and so they needed financiers with deep pockets. Some, like Disney, were clear: capitalise on the [under-tapped] African market, and get funded. That began Triggerfish’s Africa-wide expansion, birthing collaborations with creators across the continent to tell Africa-centred stories. The studio’s first call for submissions pulled in about 1,400 scripts/ideas from African writers. They finally selected eight, one of which was Supa Team 4. Before it expanded its lens across the continent, Triggerfish had focused mainly on the South African market, where it had recorded some success with feature films such as Adventures in Zambezia (2012) and Khumba (2013). But its major breakthroughs and co-signs with big streamers started after the company decided to explore stories and creators from the entire continent. This, for them, was the win-win strategy to tell stories across several cultures and access project capital. And this, they did, eventually landing a couple of their projects, including a feature film (Seal Team) and a series (Kizazi Moto), on global streaming site, Netflix. “Africa is full of stories; storytellers just need more opportunities to tell them,” Forrest said to me from his home in Ireland, another country in which Triggerfish operates. Africa: huge market, small business Africa has an estimated population of $1.4 billion people, a huge market for any business with a reasonable entertainment product. However, that number dwarfs the $6.2 million subscription video-on-demand (SVOD) users on the continent. While the market is projected to add about 9 million users over the next five years, and register a CAGR of 11.29%, the reality is that Africa’s current revenue-generating capacity is rather low. “Africa accounts for just 4% of Triggerfish income, despite comprising our largest audience,” Stuart Forrest said. “This is why we have to think globally.” Data: Mordor Intelligence Triggerfish’s strategy involves getting its stories to audiences around the world. One major market they are keen on is the African diaspora, which is often described as the world’s third-largest country. With a population strength of about 350 million, and most living in highly urbanised climes, they represent an under-tapped market opportunity for afro-animation distribution. In addition, the commercial success of Afrocentric projects, including Marvel’s Black Panther and The Woman King, has contributed to an increased global appetite for such titles, marking an increasingly promising future for Africa-centred content. The journey ahead Working with creators across the continent, Triggerfish will continue to export more African stories to the world, as it leads the fast-growing afro-animations industry. The last half-decade has seen companies like Youneek, Magic Carpet, Giraffics, Diprente, and Kugali Media launch projects that have captured global attention. Kugali Media’s Iwaju, an Afrofuturistic series set in Lagos, Nigeria, was commissioned by Disney. Youneek’s Iyanu is set to stream on HBO Max and Cartoon Network. Asked about how much of a competition these fledgling companies pose, Forrest said: “I don’t see these companies as competitors. We need more people focused on African stories and unlocking the continent’s potential for all of us.” Triggerfish projects cost anywhere between $5 million to $50 million—the kind of money African startups raising venture capital would raise through series A to C funding rounds. And profits are recouped after the project’s distribution. Despite the evident traction and potential for returns, financiers and African governments have hesitated to invest significantly in the industry, hindering its full growth and limiting Africa’s emergence as a developed market for its own stories. Also, to solve what Forrest Stuart describes as a talent gap on the continent, Triggerfish runs a non-profit that trains Africans to be world-class animators. “We’ve come a long way in Africa, but the potential ahead is still huge. We are making sure the world sees Africa and its beauty; it’s something we won’t get tired of,” Forrest concluded.
Read More- July 26 2023
Cost of data breaches in SA surged by 73% in last 8 years, according to IBM report
South Africa has one of the highest costs of data breaches in the world, according to a study by IBM Security. According to IBM Security’s annual “Cost of a Data Breach” report, the average data breach cost for South African organizations reached an all-time high of R49.45 million in 2023. This is an 8% increase over the last 3 years, and a 73% increase since South Africa was added to the report 8 years ago. The report also states that the per record average cost of data breaches reached an all-time high at R2,750, a 20% increase from R2,300 in 2021. Detection and escalation costs reached R20.88 million—the highest portion of breach costs, which indicates a shift towards more complex breach investigations. Costs associated with lost business stood at R13.56 million, while post-breach responses cost R13.29 million and notifying relevant stakeholders cost R1.72 million. The financial sector bore the brunt of data breaches, with the highest average cost of data breaches in the sector totalling R73.1 million. The industrial and services sectors were second and third, with R71.37 million and R58.78 million respectively. “South Africa is the financial centre and economic gateway to the rest of the continent. This knowledge is not exclusive to the business community; cyber attackers are aware of it too as the financial sector is the most targeted,” said Ria Pinto, general manager and technology leader at IBM South Africa. “Organisations should look to modernise their perimeter security strategies to enhance protection of their financial data by using zero-trust security solutions, underpinned by AI and automation, to increase their cyber resiliency, manage the risks and comply with strict data privacy policies such as the Protection of Personal Information Act (POPIA).” The majority of cyber threats were the results of stolen or compromised credentials and phishing scams constituting 14% each as the initial attack vectors. Attacks through compromised business emails were second at 12%, and attacks due to cloud misconfiguration were third at 11%. The study also found that globally, 95% of studied organisations, including South African organisations, have experienced more than one breach. However, breached organisations were more likely to pass incident costs onto consumers (57%) than to increase security investments (51%). AI to the rescue According to the report, AI and automation had the biggest impact on the speed of breach identification and containment for studied organizations. In South Africa, organisations with extensive use of both AI and automation experienced a data breach lifecycle that was 95 days shorter compared to studied organisations that did not deploy these technologies (190 days versus 285 days). Only 28% of studied organisations have extensively implemented security AI and automation. Additionally, studied organisations that deployed security AI and automation extensively saw an average decrease of nearly R10.49 million in data breach costs than those that did not deploy these technologies. This was the biggest cost saver identified in the report. And with nearly 29% of studied organisations not yet deploying security AI and automation and 43% using them sparingly, organisations still have a considerable opportunity to boost detection and response speeds. “Time is the new currency in cybersecurity, both for the defenders and the attackers. As the report shows, early detection and fast response can significantly reduce the impact of a breach,” said Chris McCurdy, the general manager of Worldwide IBM Security Services. “Security teams must focus on where adversaries are the most successful and concentrate their efforts on stopping them before they achieve their goals. Investments in threat detection and response approaches that accelerate defenders’ speed and efficiency – such as AI and automation – are crucial to shifting this balance.” 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. Research by Accenture also illustrates the severity of the cybercrime landscape, with the country recording the third-highest number of cybercrime victims worldwide, at a cost of R2.2 billion a year.
Read More- July 26 2023
Electronic transfers make up 82% of all B2B payments in SA, according to study
South Africa leads the way in the digitisation of B2B payments on the continent, according to a latest study. According to a report [pdf] by business payment platform Duplo, electronic transfers made up over 82% of the $994 billion of business-to-business transactions in South Africa. The report explored survey data from 1,218 contributors from Nigeria, Ghana, South Africa, and Kenya, from a diverse range of companies. It reflected different ages, sizes, revenues, and sectors. South Africa also led the way in the speed of processing invoices. It has a slender lead, with 39.9% of respondents stating that it typically takes a day or less to process invoices compared with Nigeria’s 39.7%. When it comes to payment automation, Kenya led the way with 83.4% of respondents stating that their payment system was either semi-automated or fully automated, compared to Nigeria (79.9%), South Africa (71.7%), and Ghana (67.2%). “Despite various challenges, the future of B2B payments in Africa is set for dynamic growth and innovation, signalling a new era of opportunities and expansion for the continent’s business ecosystem. The opportunity to automate accounts payable and receivable and transform other aspects of the B2B payments process offers great potential to reduce payment delays, enhance cash flow and drive growth for businesses across the continent,” said Yele Oyekola, CEO and co-founder of Duplo. “The increased adoption of digital solutions also implies a shift in workplace dynamics and positions finance professionals to add more value to their organisations. We are looking forward to playing a major role in the realisation of these opportunities and the delivery of technology solutions to support growth for businesses in Africa.” South Africa has been actively pushing towards the digitisation of its payment systems. In March, Payshap, an interbank, and real-time digital payments service built as a collaborative effort between Bankserv, a clearing house owned by South African commercial banks, and the South Africa Reserve Bank, was launched.
Read More- July 26 2023
Namibia now has a law that recognises virtual assets, including cryptocurrencies
After Namibia’s parliament passed a bill in June which aims to legalise and establish regulations for virtual assets, including cryptocurrency, the bill has been enacted into law by the southern African nation. The Namibian government has begun the process of setting up a regulatory authority to oversee the virtual asset industry, acting on the provisions of one of the major mandates of the newly passed law. The authority will be responsible for licensing virtual asset service providers and overseeing, supervising, and monitoring activities related to the provision of virtual asset services. Additionally, according to the law, individuals or entities engaging in virtual asset services without proper registration with the regulatory authority may face penalties of up to N$10 million in fines, imprisonment for a maximum period of 10 years, or both.The bill also aims to ensure consumer protection, prevent market abuse and money laundering. “The aim of the legislation was to create a regulatory framework to protect consumers, and the risk of money laundering is mitigated,” said Limpumbi Shiimi, the country’s minister of finance and public enterprises. Central bank warns public Despite the bill, the country’s central bank, the Bank of Namibia (BoN) warns the public that because virtual assets like cryptocurrencies are not legal tender, people who transact with them do so at their own risk. However, the bank acknowledges the assets’ role in promoting financial inclusion, improving the resilience and affordability of payment systems, and enhancing cross-border payments. “When the associated risks that come with innovations such as virtual assets in the financial system are better managed, the bank will make the necessary assessments and pronounce itself on their acceptance,” said Kazembire Zemburuka, spokesperson of the central bank.
Read More- July 26 2023
With cabinet list expected this week, Nigeria’s ecosystem players are cautiously optimistic about Tinubu’s presidency
The Tinubu administration has introduced a number of reforms with far-reaching effects on the economy. But Nigeria’s tech ecosystem players say it’s still a long road ahead. President Bola Tinubu has scored what should be considered, even by cynics, an interesting performance goal. In his first act as president, he removed fuel subsidies and pledged to move to a unified foreign exchange rate. By his second week in office, he suspended the Governor of the Central Bank, Godwin Emefiele, and devalued the naira. On the policy side, he has signed some bills into law—including the Nigeria Data Protection Bill designed to address the country’s disturbing surge in data breaches. The execution of this range of reforms has left Nigeria’s tech ecosystem cautiously optimistic about the Tinubu administration. “There appears to be an intentional effort at clearing the pitfalls that have endangered startups and the growth of the tech and innovation ecosystem in Nigeria,” Omoruyi Edoigiawerie, a startup attorney, told TechCabal. As stated in his campaign manifesto, President Tinubu intends to achieve an inclusive digital economy and he highlighted several plans in this regard: the creation of one million new jobs in the “ICT sector” in his first two years, talent outsourcing, tech manufacturing, and a review of the government’s stance on blockchain technology and cryptocurrency. While it remains to be seen how the new government will pull these off, industry watchers say the current economic reforms are a good start. Bloomberg reported that overseas investment flows have jumped over the past month since the naira devaluation, a tell-tale sign that Nigeria’s stock market is up for a longer bullish run. But some experts who spoke to TechCabal said H1 reports–which are due this month–may present some shocks. Following the unification of the exchange rate, new rules from the Central Bank allow beneficiaries of diaspora remittances to receive payments in naira at the prevailing exchange rates of the day. This has birthed new opportunities for fintechs and traditional banks. Access Bank has partnered with Remitly, an American online remittance service. Paga has announced that its users can now receive remittances in naira. Flutterwave has also launched payment products that will allow Nigerians to pay international tuition and airline fees in naira. Adedeji Olowe, founder of Lendsqr, a lending SaaS fintech, told TechCabal, “The body language looks like a lot will happen. Removing all the barriers will allow fintechs and by extension the startup ecosystem to work. But then, it’s still early days so it’s better not to jump to conclusions.” Good start, but not enough These fiscal reforms come with a darker side. Damilola Robert, growth marketing manager at Bitnob, said the floating of the naira has had a big effect on fintechs. “Virtual cards used to be a cash cow for many fintech platforms like Payday and the rest. However, with the new remittance policy, we are seeing banks like Wema Bank announcing that their users now have access to spend online capped at $500 monthly which I believe is a substantial amount compared to the previous $20 benchmark,” he told TechCabal. The unified FX rate also triggered a possible 40% increase in electricity tariffs from the beginning of this month. The tariff increase poses a dilemma for startups, forcing them to choose between raising prices or experiencing diminished profits. Even for startups that work remotely, their workers will bear the brunt as they now have to spend more to power their devices. Also, the new FX regime will change how startups report revenue to foreign investors. Seye Bandele, co-founder of Pade HCM, an HR startup told TechCabal that since startups raise money in foreign currency and get revenue in the local currency, meeting revenue targets becomes difficult. “This has a significant impact on how startups can earn investor confidence. The policies [of the Tinubu administration] have also impacted our internal operations. The removal of the fuel subsidies has led to a hike in the cost of moving around the city. But we cannot instantly apply palliatives to our organisation because we are already struggling to meet our revenue targets,” he added. Bandele said as the Tinubu administration is “quick to implement these reforms, it should introduce measures to contain the effects of these policies”. Exclusive: Tinubu eyes Nigeria’s tech experts for key roles From a policy perspective, the 2022 Finance Act—a spillover from the previous administration—introduced a 10% tax on profits on digital assets which include cryptocurrencies, non-fungible tokens, and other tokenised assets. Several crypto traders told TechCabal at the time that it may not work, leaving many to wonder if Tinubu’s promise to review the government stance on crypto is just on paper. Similarly, lawyers have questioned the unclear provisions in the Nigeria Data Protection Act. Edoigiawerie, the startup attorney, added that a lack of political will may stall the meaningful implementation of the law. “That is where my worry lies, we have seen good laws and regulations fail on the altar of haphazard or mischievous implementation,” he told TechCabal. More importantly, as President Tinubu looks to set up his cabinet, many tech players look forward to who becomes the next minister of communications and digital economy, mainly to drive the implementation of the Nigeria Startup Act. Tech lawyer Oyindolapo Olusesi told TechCabal that the next minister must “understand the digital economy from a global perspective but also has domain experience in the African and particularly Nigerian tech ecosystem”. Last week, TechCabal reported that four stakeholders in the Nigerian tech ecosystem are being considered for key positions—including a ministerial seat—in the Tinubu administration.
Read More- July 26 2023
Nigeria’s $500 million budget for its food sector raises transparency concerns
Nigeria has a new stash to tackle its food problem, but concerns about the government’s processes remain. Nigeria has raised over $500 million to boost its struggling food sector and bring security reforms to its Northeastern region, where insurgents have forced farmers out of their lands. But the government’s unclear intentions for the money raises questions about recycled promises. According to vice president Kashim Shettima, the $500 million will be used for “innovation finance for food system transformation, development of Nigeria’s agro value chain, and special agro-industrial processing zone programmes.” While it is good news that the presidency has mobilised half a billion dollars for Nigeria’s agricultural sector, questions remain about the clarity of implementation processes for the proposed reforms. “Food system transformation” does not communicate, explicitly, the government’s intention for an agricultural sector in dire straits. Also, the imprecise plans for agro-chain development and the “development of agro-processing zones” raise concerns about the recycling of government intentions with new funds. In October 2022, former president Muhammadu Buhari launched special agro-processing zones in eight states across Nigeria. Then-vice president Yemi Osinbajo described the initiative as a game-changer that will boost food production in the country. But almost a year after the $538 million project, which drew in notable investors like the African Development Bank and the International Fund for Agricultural Development, Nigeria’s food problem has only worsened. “Nigerians deserve more transparency from the government, especially in matters like this that threaten their living standards. We need to know where we are as a country. The last thing we need now is recycled promises that inform us of new money but hardly make bring in changes,” said Chinweike Uche, an agricultural consultant in Lagos. This report follows Nigeria’s declaration of a state of emergency last week, a move the government says will enable it to take urgent and important steps to tackle the country’s food problem. Food remains the highest driver of inflation in the West African country, which has seen its inflation rise to an 18-year high of 22.7%. The state of emergency came with some promised reforms such as clearing large areas for farming and introducing a commodity board. TechCabal has argued separately that the board is unlikely to succeed. The sources of the $500 million inflow were not disclosed, but the presidency confirmed contributions from “international finance organisations”. Recall that earlier in July, President Tinubu asked lawmakers to approve $500 billion ($638 million) of spending to cushion the effect of subsidy removal. And according to Dele Alake, President Tinubu’s spokesman, cost-savings from fuel subsidy removal were going to be used in revamping the agricultural sector. It is not clear whether such cost savings contributed to the freshly mobilised $500 million. “The president has already approved the infusion of a huge quantum of funds towards the repositioning of our security architecture,” vice president Shettima said. “We are repositioning our security architecture to provide support for farms and farmers.”
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- July 26 2023
TechCabal Daily – SANSA isn’t spacing out yet
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Here’s your weekly reminder to move us to your Main/Primary inbox so you don’t miss TC Daily. If you’ve missed TC Daily a couple of times, it’s because we’re in your Promotions folder so move us to your Main, and never miss an edition. In today’s edition SANSA clarifies stance on sending astronauts to space Nigerian DisCos to be punished over exorbitant billing Clafiya raises $610,000 The World Wide Web3: Binance to contest CTFC lawsuit Event: TC Live Job openings Space SANSA clarifies plans to send two female astronauts to ISS GIF source: Tenor South African astronauts won’t be making a trip to space anytime soon. The South African National Space Agency (SANSA) has clarified its position on a recent claim that South Africa plans to send two female astronauts to the International Space Station (ISS) within two years. SANSA has acknowledged it had ambitions to send South African astronauts on global space exploration missions, but the CEO Humbulani Mudau clarified that South Africa is still “years away” from realising that ambition. ICYMI: This clarification comes after the Russian Embassy in South Africa issued a statement by SANSA’s CEO Humbulani Mudau revealing the plan to send two female astronauts to the International Space Station (ISS) within two years, as part of the grand opening of a joint project between SANSA and Roscosmos, a Russian space debris detection centre in South Africa. Space scientists and industry experts in South Africa expressed disbelief at the initial announcement, as the training of astronauts and cosmonauts is a lengthy process that takes years to complete. Furthermore, there were no calls for candidates, no shortlisting, and no indication of the research that South Africa’s spacewomen would undertake on the ISS. Zoom out: Mudau says SANSA is committed to formalising plans with its space partners in the near future, and it is already contributing to human space travel through its partnership in developing the next Deep Space Network, which will support both manned and unmanned space exploration missions. Secure payments with Monnify Monnify has simplified how businesses accept payments to enable growth. We are trusted by Piggyvest, Buypower, Wakanow, Fairmoney, Cowrywise, and over 10,000 Nigerian businesses. Get your Monnify account today here. Policy Nigerian DisCos face punishment for outrageous estimated billing Image source: YungNollywood No one wants DisCos to rule, especially not Nigerian lawmakers. In a resolution, the Nigerian House of Representatives has urged the Nigerian Electricity Regulatory Commission (NERC) to instruct Distribution Companies (DisCos) to cease extortive estimated/arbitrary billing. A unanimous motion: This action came about after the plenary adopted a motion sponsored by Hon. Afuape Moruf. According to him, the Electricity Act of 2023 prescribes a comprehensive and institutional framework to guide the operation of a privatised, contract, and rule-based electricity market, which is within the ambit of which every participant in the Nigerian Electricity Supply Industry (NESI) must operate. An unfair increase in revenue: In Q1 of 2023, DisCos witnessed a surge in revenue, generating ₦247.33 billion ($312.37 million), which represents a significant 20.81% increase compared to the ₦204.74 billion ($257.33 million) earned in Q1 of 2022. However, during the same period, electricity supply declined from 5,956 gigawatt-hour in Q1 of 2022 to 5,852 gigawatt-hour in Q1 of 2023, despite the rise in earnings. Furthermore, in July 2023, DisCos in Nigeria raised electricity tariffs by 40%, attributing it to the impact of high exchange rates and inflation in the country. People who don’t have access to prepaid meters in Nigeria often get billed exorbitantly. This is because the DisCos are allowed to charge them higher tariffs than those who have prepaid meters. A way forward: The house has called upon the NERC to implement a robust metering strategy that guarantees fair billing for consumers, adding the importance of invoking relevant legal provisions and agreements to penalise DisCos that exploit and abuse consumers’ rights. Funding Clafiya raises $610,000 in pre-seed round Clafiya Webpage Nigerian health-tech startup Clafiya has raised $610,000 in an oversubscribed pre-seed round. The round is a mix of VC funds, angel investments, and grants. The investors include Norrsken Accelerator, Acquired Wisdom Fund (AWF), Hustle Fund, Voltron Capital, Microtraction, Ajim Capital, HoaQ, Bold Angel Fund, Shivdasani Family and other angel investors. What does Clafiya do? Clafiya brings healthcare to the doorsteps of users through in-person and virtual medical consultations. People who use Clafiya can say goodbye to pharmacy trips too! The company delivers medicines right to patients. If they need diagnostic testing, it collects samples from their residence too. Users can access all these services for themselves and their family. Employees can use it to offer their employees health insurance. What will it use the funding for? The company says the investment will finance product development and team expansion. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $29,198 + 0.07% – 4.23% Ether $1,858 + 0.50% + 2.31% Worldcoin $2.28 + 7.22% + 36.64% XRP $0.71 + 0.78% + 44.66% * Data as of 00:15 AM WAT, July 26, 2023. Binance is ready to put up a fight. Founder and CEO Changpeng Zhao has decided to argue against the lawsuits levied by the US Commodity Futures Trading Commission (CFTC). What lawsuit? In March, the CFTC accused Binance and the founder of not registering as a digital asset company with the agency and avoiding regulatory oversight. It also accused Binance of breaking several US financial rules including those intended to prevent money laundering. Binance is asking for extra sheets.Per MyBroadband, the crypto platform is supposed to respond to the CFTC complaint by July 27. Binance says that it is definitely going to respond and has even asked the court for permission to exceed a 15-page limit on supporting briefs to accommodate its robust arguments. More regulatory problems: The platform has been receiving accusations of impropriety from regulators left and right. Last month, the US Securities and Exchange Commission accused the company
Read More- July 25 2023
Inq announces enterprise AI products for Nigeria’s energy market
Inq operates in 10 countries across emerging markets, but its goal in Nigeria is clear: use AI to make energy distribution in Nigeria more efficient. Inq Group, a Pan-African edge technology provider backed by Convergence Partners, has announced its AI-powered solutions for the Nigerian energy market. According to the group’s chairman, Andile Ngcaba, the product will be integrated into the distribution network of energy distribution companies (DisCos), enabling real-time analysis of energy flow and tracking energy leaks. This announcement follows Inq’s recent reveal of two homegrown AI products it released for its 10 markets across Africa and Asia: DocAi and VisionAI. DocAI is a tool that digitises processes for businesses and allows them to use area-specific, deep learning optical character recognition (OCR) to upload scanned documents and extract valuable information. Vision AI allows enterprises to deploy AI-powered image recognition technologies across camera surveillance systems—enabling real-time analytics and alerts. “We have locally built the continent’s leading intellectual property in artificial intelligence. Our products aren’t plug-ins to another man’s technology,” Ngcaba said in a media briefing on Tuesday. “We will lead the continent’s adoption of AI and bring it to real-life cases in agriculture, energy, and digital recognition,” he added. Inq Group has operated in Nigeria for about four years, and in that time has provided enterprise-level cloud, connectivity, and IoT solutions for businesses in the country. The company says it has also built proprietary large language models that are powering its AI-solutions suite today. The media briefing also marked the introduction of Glad Dibetso, the new group CEO, to stakeholders in the Nigerian market. Dibetso takes over this role after leaving Deloitte Consulting as a partner, cloud computing and ICT operations. Before this role, he served as the CEO of the West African operations at Dimension Data, a data solutions provider backed by Convergence Partners. “Electricity in Nigeria is powered by distribution companies. They collect monies from end users to pay the companies transmitting and generating electricity. But DisCos have struggled to remain profitable due to the lack of proper analytics to track the distribution and detect mass leakages. This is where we come in. We are already in talks with the government for adoption,” said Valentine Chime, Inq Nigeria’s managing director. Andile Ngcaba shared strong optimism in Inq’s business in Nigeria. “Nigeria will be Inq’s regional hub, through which we will expand to several anglophone countries in the region,” he said.
Read More- July 25 2023
CBN raises interest rates in first MPC meeting under acting CBN Governor
In the first Monetary Policy Committee meeting of the Tinubu administration, the Central Bank of Nigeria (CBN) elected to raise lending rates by 25 basis points Nigeria’s Central Bank has raised the benchmark lending rate by 25 basis points to 18.75 percent, from 18.5 percent, in an aggressive push to contain inflationary pressure. The acting CBN governor, Folashodun Shonubi, announced this today after the bank’s Monetary Policy Committee (MPC) meeting that began Monday. Sections of the media billed this week’s MPR as a litmus test of the CBN’s independence under a new President. The thinking is that acting CBN Governor Folashodun Shonubi may have been tempted to keep rates stable to ensure his appointment is made permanent. It is not without precedent; under the past CBN governor, Godwin Emefiele, many observers felt that the apex bank became subservient to the executive arm of government and that Emefiele’s tenure was extended because he played to the whims of the government of the day. Nevertheless, before the end of the Buhari administration, Godwin Emefiele raised rates twice in response to inflation after years of seeming indifference. Today’s rate hike was less than the 100 basis points hike predicted by a cross-section of experts TechCabal spoke to. In 58 days, President Bola Tinubu has fulfilled his campaign pledges to end fuel subsidies and unify the country’s exchange. Yet, inflation is a tougher nut to crack, as headline inflation continued to rise in June and in July, headline inflation reached 22.79%. Experts told TechCabal that Nigeria’s rising inflation can’t only be solved by raising MPR. The CEO, Coleman wires and Cables, George Onafowokan, asked the government to hold the rates, noting that it is affecting the business of manufacturing, which will end up passing the cost to the end user. “Do we need more increases? If you look at treasury bill rates as of July 12, it is 5.94%. If the savings rate of the government treasury bill at one year is 5.94%, I don’t see the benefit of an increase. It will slow down the real sector,” Onafowokan said. The Head, Research and Strategy at Cordros Securities Limited, Jolomi Odonghanro, explained that higher interest affects consumption and price stability. He noted that MPR rates have been used to address inflationary pressures, and there has not been a connection between the MPR and the financial market. He gave an example using the treasury bills rate of less than 6% and the MPR rate of over 18%. He said the MPC needed to realign the market so the MPR would affect both the real sector and the financial market. The apex bank chief said the bank is concerned with hiking the interest rates, reducing liquidity, and curtailing inflation. He added that the CBN is trying to keep the foreign exchange stable. “If there is a need for us to intervene either by buying or selling, we will. We will bring the markets to the level where it should be,” he stated. Where does this leave Nigerians? The MPR rate is a tool the CBN uses to tackle inflation. It also determines the lending rate of financial institutions in the country— an increase in the rate means that borrowing for small businesses will be difficult. In June 2023, the head of external communications and media relations of Unity Bank, Jonah Nwokpoku blamed the lender’s poor financial health on “the continuous rise in interest rates and high inflationary environment.” The bank failed to meet the required minimum Capital Adequacy Ratio (CAR) of 10% and the minimum capital requirement of ₦25.00 billion for a national bank as required by the Central Bank of Nigeria (CBN) in its full-year 2022 results.
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