👨🏿🚀TechCabal Daily – The curious case of cyberattacks in Africa
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning! The faceoff between Google, the fifth most valuable company in the world, and the US Department of Justice over the former’s alleged monopoly in the ad-tech market is coming to a close soon. In September 2023, the DOJ accused Google of monopolising the ad-tech market and stifling competition. Google denied those claims, calling them outdated. Yesterday, after a two-week trial, both sides had 90 minutes to give final addresses on their cases. Now, all that’s left is the judge’s decision. The DOJ remains hot on Google’s tails to break up its Chrome browser, which could give other players like DuckDuckGo and new entrant OpenAI—that is considering making its own browser—a window into the search market. South Africa battles cyberattacks Union Bank of Nigeria increases staff salaries by 40% Egypt to tax imported mobile phones World Wide Web 3 Opportunities Cybersecurity South Africa’s battles with cyberattacks Image source: Google We may sound like a broken record when we say cyberattacks are a growing threat across Africa, but the numbers don’t lie. South Africa alone—the most targeted African country—accounted for 22% of all attacks on the continent between Q1 2023 and Q3 2024. Egypt suffered 13% of these attacks, while Nigeria and Algeria remain key targets for hackers. On the dark web, South Africa dominated mentions, accounting for 25% of all forum posts, showing a sustained interest from cybercriminals. These details are contained in a report by cybersecurity firm Positive Technologies. Per the report, government entities and financial institutions were prime targets for cyberattacks, with 22% of these attacks being successful. In 2024 alone, South Africa’s public diagnostic provider, trade commission, and intellectual property records were all breached in separate cyberattacks. Hackers employed advanced persistent threats (APTs) which involve lurking around an organisation’s data hierarchy and remaining undetected for a long time. These complex hacks have hit South Africa hard in the last few years. In July 2024, South Africa’s public works minister Dean Macpherson revealed that the country has lost R300 billion ($16.5 million) through cyberattacks in the last decade. Another disturbing revelation from the report is how hackers are forming colonies on the dark web. This allows them to share data of African government entities among themselves for free. They also sell access to company networks for around $2,970 (R53,784). Hackers are also targeting Africa’s industrial and telecom sectors—especially telcos—trying to steal sensitive information they use to do more damage on other fronts. In 2023, Nigeria’s Globacom suffered a DDoS attack which left employees unable to access company systems for weeks. In September 2024, South Africa’s Telkom suffered a data breach. The real danger is how these bad actors share data for free as if one is rooting for the other to succeed. If companies are learning to fly without perching, these bad actors are learning to shoot without missing. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Banking Union Bank of Nigeria increases staff salaries by 40% Image Source: Oriental News When we reported in September 2024 that GTBank, Nigeria’s cost-efficient leader in commercial banking, raised staff salaries by 40%, a colleague said it could prompt other banks to consider similar raises. That prediction was right. Two months later, Union Bank of Nigeria, a tier-2 commercial bank, increased salaries by 40% for all employees from executive trainees to general managers. The bank hopes the increase will help its over 2,000 employees cope with Nigeria’s rising cost of living, thanks to a rapidly-devaluing naira and inflation. Executive trainees, who previously earned a ₦260,000 ($153) salary, will now take home ₦364,000 ($215) monthly. Senior banking officers (SBO) will now earn ₦20 million ($12,000) in annual gross salary. No better time to start a banking career, if you ask us. The revised compensation is a win-win for Union Bank. It is great news for employees whose salaries have been pressured by the macroeconomic condition. It also helps the bank to remain competitive in an industry where employees often move between banks for better pay. The salary bump will also increase what Union Bank spends on employee overhead costs. In 2023, the bank spent ₦34 billion ($20.2 million) in paying salaries alone. With the 40% increase, its new wage bill could reach ₦47.6 billion ($28.2 million) Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Economy Egypt to tax imported mobile phones Image Source: EgyptToday When a country wants to encourage local production and reduce dependence on imports, it raises customs and tax fees. Egypt is doing just that with a new tax structure on imported smartphones. Under the new rule, mobile phones could be subject to customs and tax fees totaling 37.5%, including a 5% development fee. Once a new phone is activated with a SIM card, users will have a three-month grace period before being required to pay these fees, or risk having their service suspended. Egypt’s motivation is two-fold. First, the government wants to deal with the indiscriminate smuggling of smartphones with about 99% of smartphones operating in Egypt being unregistered. Second, it wants to encourage local smartphone manufacturing where foreign investments are increasing, and local factories are growing in number. It has been partnering with top original equipment manufacturers (OEMs) in the last two years. In 2023, Chinese phone makers Samsung, Vivo, and Finland’s giant Nokia established three production factories in Egypt due to its strategic location and access to the Middle East and Arab
Read MoreStartupFuel launches tool to help VCs identify AI misinformation during due diligence
StartupFuel, a Canada-based AI due diligence company, has launched DiligenceGPT, a tool designed to help venture capital firms address AI misinformation and bias in due diligence for African startups. The AI-powered tool helps VC firms to sift through and analyse large datasets provided by founders and compare them against industry standards and public data. DiligenceGPT will provide investors with risk ratings, relevancy fit, and data integrity scores to guide their funding decisions. “There is no doubt that there is a rise in talent, so [DiligenceGPT] aims to empower local entrepreneurs in Africa, helping them expand their reach, attract investment, and ultimately contribute to sustainable economic development in the continent,” the company said. Self-described as the “LinkedIn and Bloomberg for VC,” StartupFuel provides due diligence insights on startups on its directory list and presents them as an “SAT” score to investors. This score is benchmarked against their business model and market, traction, barriers, competitors, and financials to help founders select their winners. “DiligenceGPT is our commitment to reducing bias, providing greater transparency, and utilising AI to enhance the current process,” said Ashley Martis, StartupFuel CEO. AI misinformation contributes to funding biases. Large language models (LLMs) make it easier to manipulate data about market sizes and serviceable markets in different industries, for instance. Inaccurate or incomplete information provided to these investors can slip through unnoticed, creating challenges for them and sometimes, skewing investment decisions. “The industry is ranked with subjective biases, and a growing need to validate large amounts of private data that can be incorrect, exaggerated, and/or molded to tell a false narrative,” the company said in a statement. Founded by Ashley Martis in 2017, StartupFuel offers an AI-driven solutions market for venture capital. In 2020, the company raised an undisclosed amount of funding in a round led by ID8 Investments, with participation from Aurum Holdings, according to Crunchbase. StartupFuel has also expanded through strategic acquisitions. In 2019, it acquired Startifi, a social network for startups, and in 2021, acquired Uncrowd.io, a platform supporting underrepresented founders. It counts Techstars and Village Capital as clients. The AI startup faces stiff competition from more established players in venture capital due diligence, such as Crunchbase and Tracxn, which offer similar deal flow analysis tools for investors. Yet, StartupFuel is betting on its technology. The AI startup has trademarked its DiligenceGPT tool and filed a patent awaiting approval, to build its moat on the technology aspect of its operations.
Read MoreKenya proposes new law to hold outsourcing firms liable for employee claims
Kenya’s parliament has proposed a Business Law (Amendment) Bill 2024 to regulate business process outsourcing (BPO) and IT-enabled service (ITES) companies amid growing scrutiny of worker conditions. This follows a September 2024 court ruling allowing BPO firms to be sued locally. It was prompted by former Sama employees who alleged they were moderating harmful content for clients like Meta under exploitative conditions and with inadequate safeguards. Three Sama employees claimed in one report that they were underpaid at $2 per hour, far below the $12 proposed by business partners. The new bill proposes that employers provide all tools necessary for employee duties, regardless of ownership, and bars them from evading accountability by claiming they are not direct service beneficiaries. While this could curb exploitation and align Kenya’s labour standards with global norms, the proposed law raises concerns, one commercial lawyer told TechCabal. The bill proposes that BPO firms should offer “necessary tools” for their employees and suggests rigid liability provisions that could deter outsourcing giants wary of increased operational risks and compliance costs, the same lawyer said. “An employer who operates as a Business Process Outsourcing company or who is a provider of Information Technology Enabled Service shall be responsible for any claim raised by an employee in relation to the contract of service and shall not, in its defence to such claim, assert that it was not, in fact, the beneficiary of the services of the employee,” part of the bill seen by TechCabal reads. Sama previously provided content moderation services to Meta before exiting the business amid legal disputes with over 180 former employees. These employees sued Sama for unfair dismissal and alleged that the company failed to protect them from the psychological toll of moderating harmful online content. Sama has since stopped moderation operations and shifted focus to AI labeling services for technology giants such as Microsoft, Google, and the e-commerce platform Walmart. Meta is also being sued for an alleged algorithm that fueled ethnic violence in Ethiopia, another lawsuit claims. Petitioners, represented by Mercy Mutemi of Nzili and Sumbi Advocates, are seeking to ban harmful content recommendations and establish a $1.6 billion victim fund. Balancing worker rights with business competitiveness is critical, another legal expert told TechCabal. Without proper implementation, the bill risks stifling Kenya’s rising prominence in the global outsourcing industry, the expert said. Both Sama and Majorel have employed over 3,000 Kenyans.
Read MorePalmPay taps ex-Opay executive to lead marketing in Nigeria
Palmpay, the pan-African fintech present in three countries, has named Femi Hanson as the new marketing and public relations head for its Nigerian subsidiary. Hanson previously led the marketing teams of OPay and Moni, two Nigerian fintechs, and has five years of fintech marketing experience. He will lead PalmPay’s efforts to grow its business in Nigeria, its biggest market. The fintech claims it has 35 million users and onboarded 1.2 million businesses. “His deep understanding of the local market and proven track record of driving impactful campaigns will help us strengthen our connection to customers and accelerate our mission of advancing financial inclusion,” Sofia Zab, PalmPay’s global chief marketing officer, said. Palmpay entered Nigeria in 2019 backed by a $40 million seed round from Tecno. That investment came with a partnership with Transsion Holdings, the parent company of Tecno, Infinix, and Itel, which allowed it to pre-install its app on millions of phones sold by Africa’s biggest smartphone seller. It also offered discounted transfers to banks and free transfers to PalmPay wallets. Palmpay’s digital lending business, with interest rates ranging from 15-30%, also fuelled its rapid popularity in Nigeria. The fintech was one of the biggest winners of Nigeria’s controversial currency redesign policy in 2023. Nigerians turned to fintechs like OPay and PalmPay after traditional banks struggled with the surge in online transactions. PalmPay was listed as one of the seven African fintech companies in the CNBC top 250 fintech companies, edging out competitors like OPay and Moniepoint. The unranked list was curated based on desk research by the Statista team and information provided by the businesses, such as 2023 revenues, year-on-year sales growth rate, and total headcount. “Joining PalmPay at this stage of its incredible journey is a tremendous honour. I am excited to build on the company’s strong foundation and contribute to its mission of delivering seamless financial solutions to millions of Nigerian consumers and businesses,” Hanson said.
Read MoreUnion Bank increases staff salaries by 40% amid rising cost of living
Union Bank of Nigeria, which was acquired by Titan Trust Bank in 2022, has raised staff salaries by 40% to help its over 2,000 employees cope with the rising cost of living, according to two people familiar with the matter. The salary increase took effect on November 1, 2024. Employees will receive the arrears for November along with their December 2024 salary, according to an internal memo seen by TechCabal. The salary increase applies to all employees, ranging from executive trainees to general managers, and outsourced associates, the internal memo said. Executive trainees, who were earning ₦260,000 ($153) per month, will now take home ₦364,000 ($215) per month, according to sources with direct knowledge of the bank’s salary structure. A senior banking officer (SBO) will now be bumped to ₦20 million ($11,792) in annual gross salary, a second person shared. This is the third salary increase Union Bank has implemented since 2022. Union Bank declined to comment on this story. Union Bank’s salary increase comes as part of a broader trend among Nigerian commercial banks responding to the country’s macroeconomic situation. In September 2024, GTBank, a tier-1 commercial bank known for cost efficiency, raised staff salaries by 40% and Sterling Bank, a tier-2 bank, began paying employees a cost of living adjustment stipend in August 2024. These measures are expected to keep salaries competitive as a naira devaluation and soaring inflation have triggered a cost of living crisis and put consumer spending under pressure. “The recent adjustments to our compensation and benefits package strongly reflect Union Bank’s commitment to investing in our employees and aligning with industry standards,” Union Bank said in the memo. Union Bank spent ₦34 billion on personnel expenses in 2023, a 27% jump from the previous year, according to its financial statements. That 40% increase means the bank would spend ₦47.6 billion in the coming year. *Exchange rate used: $1 = ₦1,696 Editor’s note: This article has been updated to include that Union Bank declined to comment.
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👨🏿🚀TechCabal Daily – Jury steps down
In partnership with Lire en Français اقرأ هذا باللغة العربية Welcome to the last week of November! A deep dive by TechCrunch last Friday revealed that Y Combinator’s near-5,000 portfolio companies often include startups that replicate ideas from other YC companies, especially in fields like AI and code editors. One such example is PearAI, which admitted to cloning another AI startup’s technology in October 2024, vowing to start again from scratch. Yet, the spoils extend farther away from artificial intelligence. YC has been gung ho about backing startups in crypto trading, e-commerce platforms, payroll solutions, and corporate expense management, since the successes of Coinbase, Shopify, Gusto, and Brex. Many startups have taken the advantage to duplicate what worked. Innovation is a shell word. Marc Jury, MultiChoice South Africa CEO to resign in March 2025 Nigeria saved $20 billion by removing fuel subsidy NDIC vows to pay uninsured Heritage depositors Nigerians unable to afford healthy meals World Wide Web 3 Jobs Companies Marc Jury, MultiChoice South Africa CEO to resign in March 2025 MultiChoice South Africa CEO, Marc Jury/Image source: Technext On Friday, November 22, 2024, Marc Jury, CEO of Showmax and the South African arm of MultiChoice, announced his resignation effective March 2025. Byron du Pleiss who is currently the group deputy chief financial officer (Deputy CFO) will take charge from April 1, 2025. Jury has been with the company for over ten years. Formerly, he was the CEO of SuperSport, the sports and entertainment broadcast channel owned and operated by the giant pay-TV company, between 2020 and 2023. In his role at SuperSport, Jury expanded the broadcasting rights for SuperSport to include the local South African sports league, as well as the CAF champions league on DStv which brings in millions of views yearly. When the payTV faced monopoly accusations in Kenya in 2020, Jury was responsible for maintaining partnerships with the English premiership to help SuperSport keep its market leader status in sports broadcasting. As Showmax’s CEO—a position he took over in September 2023 after Yolisa Phahle resigned—his insistence on prioritising local content production put Showmax on the map. In H1 2024, MultiChoice Group invested R1.6 billion ($88 million) into Showmax. By the end of 2023, Showmax was trailing as a close second behind only Netflix (1.2 million subscribers) in the South African streaming market with 937,000 subscribers. However, Showmax has since relinquished that position to third and is now in close competition with Netflix and Amazon Prime Video for the number one spot as of Q2 2024, according to data from JustWatch. Yet, in H1 2024, the local streaming service grew its active subscriber base by 50% and topped subscriber watch hours. MultiChoice Group in the last half-year results, announced its plan to continue investing in Showmax, describing the service as being in its “peak investment cycle.” Jury will leave Showmax and MultiChoice South Africa to pursue other interests in sports business. The handover period for du Pleiss will begin on December 1, 2024 where Jury will closely mentor his successor in his new role before resigning in March 2025. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Economy Fuel subsidy removal has saved Nigeria $20 billion, says Wale Edun Image Source: Zikoko Memes “On fuel subsidy, unfortunately, the budget before I assumed office is that no provision is there for fuel subsidy. So, fuel subsidy is gone.” This was Nigerian President Bola Tinubu giving his inaugural speech on May 29, 2023 after winning the presidential election three months earlier. The newly-assumed President removed the fuel subsidy that day. It was one of the first actions he took as president, addressing the costly fuel subsidy, which had been a key promise in his Renewed Hope agenda. In 2022, it cost ₦4.39 trillion ($2.6 billion) to subsidise petrol for 223 million Nigerians. During former president Muhammadu Buhari’s term, Nigeria’s ex-finance minister Zainab Ahmed warned that the country could easily go 70% over-budget and continue its alarming streak of budget deficits, if the fuel subsidy stayed put. At the time, Nigeria had spent ₦3.36 trillion ($2 billion) in the first-half of 2023—which would have likely doubled by the end of the year if Tinubu hadn’t intervened. For many economists and rational thinkers, this was the right decision. But that didn’t make the decision any easy for millions of Nigerians who have had to deal with the steep hike in petrol prices from ₦145 ($0.086) per litre to ₦1,025/litre ($0.61/litre) in the space of 17 months. Yet, that tough decision appears to be vindicated as Wale Edun, Nigeria’s current finance minister, claims that the country has saved $20 billion (₦33.8 trillion) through the fuel subsidy removal and adoption of a market-based pricing. President Tinubu continues to intensify his efforts to build goodwill among Nigerians by introducing compressed natural gas (CNG) vehicles to make public vehicle access cheaper. He approved the PCNGi—which sponsors the conversion of petrol vehicles to CNG vehicles—in August 2023. The country, under Tinubu, has also championed initiatives to subsidise drivers to convert their petrol vehicles into CNG vehicles and built CNG filling stations across the country. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Banking NDIC vows to pay uninsured Heritage depositors Image Source: Zikoko Memes One of the ways banks make money is by giving out loans using customers’ deposits. Although it’s a little bit more complicated than that, the regulation by the Central Bank entails that banks must maintain a healthy debt-capital
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👨🏿🚀TechCabal Daily – Zero to $10 billion
In partnership with Lire en Français اقرأ هذا باللغة العربية TGIF! WhatsApp is offering some respite to people who cannot stand long voice notes. The social media company announced yesterday that it is rolling out voice message transcripts. To access the new feature, select the “Chats” section in your WhatsApp settings and then tap “Voice Message Transcripts.” Once you’ve set it up, you can get a transcript for a voice message by long-pressing it and tapping the “Transcribe” option. It will not automatically transcribe every message. What’s more, you can select your transcript language from the languages supported by your phone. How cool is that? Inside Jiji’s playbook for gaining market dominance Inside Nigeria’s tech ecosystem expansion Kenya cancels $2.6 billion Adani deals after US indictment Funding Tracker World Wide Web 3 Jobs E-commerce Inside Jiji’s playbook for gaining market dominance Image source: TechCabal If you ask an American to sell something fast, they’ll list the item on eBay. For many Nigerians, that option is Jiji. The marketplace, which allows users to buy and sell across 16 different categories, has over 6 million listings with at least 21 million users monthly, according to its CEO and co-founder Anton Volianskyi. Before Jiji became the top choice for quick sales, it was the media-scorned child of the e-commerce sector for the longest time, especially during the heightened face-off between Konga and Jumia in 2020. Its uphill climb could be because it launched two years behind e-commerce behemoths like Jumia and Konga, but most users avoided Jiji for its fake listings and scams. Now, 10 years later, Jiji has beaten its competitors, including Naspers-owned OLX which it acquired in 2019. In an interview with TechCabal, Volianskyi discussed how the company scaled to success through acquisitions and cost-effective marketing. To deal with the fraud, it invested heavily in rigorous ad moderation, an anti-scam system that uses AI technology and human moderation to detect and remove fraudulent listings and verified badges for sellers. Reducing fraud was just step one for a company that at the time, its reputation preceded it. While the media’s focus was still on Konga and Jumia, Volianskyi and his team went on to gain market dominance in Nigeria and soon started to gun for regional dominance in Africa. Find out what the media missed in Jiji’s climb to e-commerce success. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Startups Inside Nigeria’s tech ecosystem expansion Image Source: TechCabal On Thursday, TechCabal published a report by TLP Advisory, a Nigerian venture law firm, that generated significant online discourse. Per the report, 49% of Nigerian startups—venture companies that have raised one form of funding or another—founded within the last ten years make less than ₦10 million ($6,000) in annual revenue. It’s critical to note, however, that two-thirds of these startups were founded between 2019–2023. Online reactions that trailed the story argued the report’s methodology and veracity. “This is very hard to believe. Less than ₦10 million? It’s hard to believe,” wrote one user on X. This captured most of the reactions to this report. Yet, while many startups are focused on rapid growth, it’s important to consider that sustainable profitability, even with lower yields, can be more valuable than high-revenue models with excessive spending. Running a tight ship in the Nigerian market is challenging. Think the lack of growth capital, currency devaluation, macros, government policies, customer erratic behaviour, talent churn, and sometimes, simply neglect. Businesses that prioritise lower cash burn and cut costs could be winners. Yet, can Nigerian startups outcut the macros? The report also showed that half of the startups without partnerships or collaborations struggled with profitability. Partnerships and mergers and acquisitions (M&As) are another crucial aspect of Nigeria’s startup market. They are signs of a maturing tech ecosystem. One recent example is OmniRetail acquiring Traction Apps, a Nigerian payments provider. What started as a partnership became a deal that could help both companies grow. This has been received positively, showing the country’s readiness for this kind of maturity. In Nigeria, there have been 26 local M&As (with one pending) since 2019. With more partnerships, the country’s tech ecosystem can unlock more growth opportunities. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Economy Kenya cancels $2.6 billion Adani deals after US indictment Image Source: Google Opposition groups to Adani’s airport and power transmission deal in Kenya can finally have some respite. On Thursday, US prosecutors charged Gautam Adani, chairman of the Adani group, with helping drive a $250 million bribery scheme. The indictment left President Ruto with no choice but to scrap plans to award the Adani group a $2.6 billion power and airport project. Both projects—especially the airport project—have been strongly opposed in Kenya. Critics claim they were unaffordable, threatened job losses, and offered no value for money to the taxpayer. The airport project, for example, which will see Adani manage Nairobi’s biggest airport, JKIA, came with a controversial 30-year clause that stops Kenya from building or expanding other competing airports for 30 years. Aviation workers at the JKIA airport began a strike in September over that proposal, protesting the deal and disrupting flights. The Kenyan Human Rights Commission (KHRC) and the Law Society of Kenya (LSK) also filed a suit at a Kenyan high court, arguing that the 30-year concession was irrational. In its defence, the Kenyan government believed the deal was the best option to expand JKIA amid a starved development budget. Gautam Adani’s indictment and
Read MoreFrom zero to $10 billion annual transactions: How Jiji became one of Nigeria’s e-commerce leaders
When Jiji launched in 2014, it entered a competitive e-commerce market in Nigeria, joining the likes of Konga, Jumia, and OLX, which had a two-year head start. But Jiji soon positioned itself as a serious market player. It started by offering free listings for first-time users and partnered with phone manufacturers to ensure its app came preinstalled on affordable smartphones. In 2016, it inked a partnership with Airtel allowing users to access the platform without using mobile data. Jiji’s ambitions grew beyond Nigeria. In 2019, it acquired OLX Africa and took over its operations in Nigeria, Kenya, Ghana, Uganda, and Tanzania. This move helped JIji reach 300 million people across five countries, firmly establishing the company as a major online marketplace in Africa’s e-commerce space with a string of strategic acquisitions. In 2021, Jiji acquired Cars45, a platform that buys, sells, and trades used cars in Nigeria, Kenya, and Ghana. In 2022, the company acquired Tonaton, its main competitor in Ghana. TechCabal spoke to Anton Volianskyi, Jiji’s co-founder and CEO about the company’s journey and the challenges of scaling in different markets. This interview has been edited for length and clarity. TC: What problem did Jiji aim to solve in Nigeria’s e-commerce market, and how did this shape the platform’s early offerings? We identified a need for a platform where people could connect directly to buy and sell everything, from products to services. At the time, the market faced pressing issues around accessibility, affordability, and trust, with scams creating distrust in online transactions. To address this, we built Jiji to minimise the risks by facilitating direct transactions with no intermediaries. Our early offerings were shaped with this mission in mind: free listings, rigorous ad moderation, an AI-based security system, and an integrated chat feature enabling users to interact directly with sellers, all of which enhanced safety and user confidence on the platform. TC: What strategies and localised features contributed to Jiji’s growth and user adoption in Nigeria? We introduced free listings for first-time sellers, localised content in languages like Hausa, and search filters tailored to Nigerian shopping habits. Partnering with phone manufacturers, we partnered with phone manufacturers to provide affordable Android phones preinstalled with the Jiji app, eliminating the need for downloads. Optimised for low-data usage, Jiji ensures accessibility for users across diverse demographics. TC: What key challenges did Jiji face while scaling, and what measures were taken to overcome them? One of the major issues was preventing scams on the platform. To address this, we invested heavily in AI-driven tools that detect and prevent fraudulent activity, instantly blocking suspicious users. Another challenge was stiff competition from global players like Ringier and OLX (Naspers) who had huge budgets. Unlike our competitors, we focused on cost-effective performance marketing and meticulously analysed the return on every dollar spent. This approach enabled us to compete favourably and helped us achieve market leadership while staying financially agile. The COVID-19 pandemic also presented unforeseen hurdles. We had to rapidly reorganise our business to adapt to new market demands. Although the first quarter was challenging, the surge in online trading during the pandemic eventually sped up our growth. Finally, the naira devaluation had us rethinking and restructuring our financial strategy to align with new economic realities. Our commitment to cost-efficiency helped us avoid large-scale layoffs, further making Jiji a resilient and resourceful market leader. TC: With the acquisitions of Cars45 and Tonaton, how has Jiji integrated these businesses and what unique value have they added to the platform? Cars45 and Tonaton have complemented Jiji’s growth and diversified our offerings. For instance, Cars45 has helped simplify automotive transactions. For our buying customers, they can browse a wide selection of vehicles, access detailed inspection reports covering over 200 checkpoints, and schedule physical inspections. For selling customers, we can now provide a platform that offers insights into potential selling prices backed by over 8 years of market data. Sellers can book appointments at any of our 70+ experience centres for quick, efficient inspections and sales. Dealers benefit from an online onboarding process, complete with free product training. Tonaton, on the other hand, has reinforced our foothold in Ghana, helped to expand our user base and consolidated our market position. With Tonaton and Cars45 under Jiji’s umbrella, we are getting closer to becoming a regional leader in classifieds. These acquisitions have enriched our marketplace by providing niche expertise and extending our service range. TC: How does Jiji ensure operational efficiency across logistics, payments, and customer support in its various markets? We achieve operational efficiency at Jiji by leveraging technology and a customer-led approach. While Jiji doesn’t handle logistics or payment services directly, we empower buyers and sellers to connect and manage transactions independently. This way, we ensure a flexible and user-driven marketplace experience for our users. We also have a customer support system, which includes managers who are just a call away, an AI chatbot system, and a support team ready to assist both buyers and sellers across our markets. TC: How is Jiji’s platform monetised across different regions, and have recent acquisitions and job listings diversified its revenue streams? Jiji has a couple of revenue streams that support our growth across markets. Primarily, sellers pay for Premium Services, which allow them to have more listings and reach more clients, resulting in more leads and sales. We also tap into additional digital advertising income by generating ad revenue from Google through banner ads. Recent acquisitions, such as Cars45, have diversified Jiji’s revenue streams even further. Through Cars45, we facilitate verified car sales and optimise our automotive offerings while adding another revenue channel. TC: What systems and processes are in place to maintain quality control and ensure a safe experience for users? We prioritise quality control and user safety. We have moderation teams localised across our markets. They review ads and ensure compliance with our policies, and those of our host countries. Additionally, through our security systems, our AI-driven algorithms detect and flag suspicious activity on the platform, automatically blocking
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👨🏿🚀TechCabal Daily – Magnificent 5
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy pre-TGIF! Big Cabal Media just turned 10. It’s been a decade of redefining storytelling, shaping conversations that drive meaningful change, and spotlighting African innovation and culture across tech, business, and youth. Our CEO, Tomiwa Aladekomo, reflects on the journey, the milestones, and what’s next for BCM. Read Tomiwa’s full note here. The ‘Big 5’ take the lead in most private deal inflows to Africa Nigeria expected to raise interest rates Yellow Card secures crypto licence in South Africa World Wide Web 3 Events Funding The ‘Big 5’ take the lead in most private deal inflows to Africa Image source: Zikoko Memes When you think of startup funding in Africa, you think of the Big 4 —South Africa, Egypt, Nigeria, and Kenya. These were countries where all the private capital flowed into. Think private equity, debt, venture capital deals, and mergers and acquisitions (M&As). The Big 4 raised at least 80% of all the continent’s capital since 2021. Slowly, another West African country has risen through the ranks. In 2024, Ghana has solidified its position as a new entrant in Africa’s “Big 5” private capital destinations. Startups like Fido, Kofa, and Complete Farmer have driven this growth, raising a combined $45 million in the third quarter of the year. Beyond startup activity, Ghana has attracted interest in private equity and debt financing, with notable deals in renewable energy and agribusiness. The country’s consistent focus on policy reforms and financial sector innovation has made it an attractive destination for broader private capital opportunities. M&A activity has also increased, particularly in consumer goods and logistics, as businesses expand regional operations. There were 73 private capital deals in Africa in Q3 2024, according to a report by Stears. Thirty-nine of these deals were worth $2.27 billion. The Big 5 claimed 85% of those deals, reinforcing their dominance. Financial services led the pack, accounting for 33% of investments, while consumer services followed at 19%. Notably, 90% of consumer goods investments targeted e-commerce, a promising sign for Africa’s digital trade growth. Yet, that’s not all. Rwanda, another tech ecosystem upstart continues to quietly grow. The East African country saw more private capital deals (15%) in Q3 2024 than Ghana (12%). Could there be a Big 6 soon? With Rwanda’s emergence, it’s hard to bet against it. Read Moniepoint’s Case Study on Funding Women After losing their mother, Azeezat and her siblings struggled to keep Olaiya Foods afloat. Now, with Moniepoint, they’re transforming Nigeria’s local buka scene. Click here for a deep dive into how Moniepoint is helping her and other women entrepreneurs overcome their funding challenges. Economy Nigeria expected to raise interest rates at next MPC meeting Image Source: TechCabal Nigeria’s Central Bank is expected to raise interest rates on November 26 at its next Monetary Policy Committee (MPC) meeting. The MPC raised the interest rates five times this year to fight the country’s inflation rate. Nigeria’s headline inflation quickened to 33.8% in October after a hike in fuel prices and floods in food-producing areas affected consumer prices. Analysts predict that the unrelenting inflation may cause the MPC to nudge interest rates up by 25–100 basis points. The Central Bank governor, Olayemi Cardoso, said at the last MPC meeting that the regulator was committed to taming inflation and attracting foreign investment by implementing a positive real interest rate. While the governor has opted to continuously raise interest rates to tame inflation, analysts suggest that there might be a need for complementary fiscal measures. “In the long run, I don’t think continuous hiking will tame inflation significantly. There are other areas we should look at as a nation and economy to manage our inflation,” one analyst told me. Banks will be the biggest beneficiaries if the CBN raises interest rates. Four of Nigeria’s largest banks by market cap—Guaranty Trust Holding Co., Zenith Bank Plc, United Bank for Africa Plc, and FBN Holdings Plc—all reported that net interest income had more than doubled since the last time the CBN raised rates. Get Fincra’s Embedded Finance and BaaS Report 2024 for FREE Fincra in collaboration with The Paypers have released the Embedded Finance and Banking-as-a-Service Report 2024. This report examines the key challenges and innovative solutions defining the future of seamless cross-border payments and remittances across the continent, among other topics, with key experts. Get this valuable, free resource today! Startups Yellow Card secures crypto licence in South Africa Image Source: Semafor One month after it raised $33 million from investors, Yellow Card, the stablecoin infrastructure company, has secured a crypto licence in South Africa. The licence will allow Yellow Card to offer financial services related to crypto assets that are not regarded as legal tender in South Africa. Yellow Card joins over 138 other companies with crypto licences in South Africa as the country softens its stance on cryptocurrency after $26 billion flowed through crypto between June 2023 and 2024. Yellow Card launched in South Africa in 2020 and operates as a payment rail across 20 African countries. The company enables users to send money using stablecoins pegged to the dollar. The startup does not charge transaction fees but makes money from FX spread during transactions. Since its inception in 2016, it claims to have facilitated over$3 billion in transactions. While getting a licence is good news for Yellow Card, it may need to brace up for a stricter regulatory environment. The Financial Intelligence Centre (FIC), the country’s anti-money laundering regulator now mandates crypto platforms to verify the identities of both senders and recipients in cryptocurrency transactions. This is part of efforts to fight money laundering and terrorist financing since South Africa is on the FATF Greylist. South African regulators may have welcomed crypto with open arms, but the scepticism on crypto remains. Introducing Paystack transfers in Kenya Paystack merchants in Kenya can now send single and bulk transfers to any Kenyan bank or MPESA account (including customer wallets, Paybills, and Tills) Learn more → CRYPTO
Read More49% of Nigerian startups founded in the last 10 years make less than ₦10 million in revenue
Nearly half of venture-backed Nigerian startups founded within the last ten years make less than ₦10 million ($6,000) in annual revenues, according to a new report by TLP Advisory, a venture capital law firm. 49% of startups surveyed in the report generate less than ₦10 million a year, while only 15% generate above ₦250 million ($149,000) annually. These startups attributed their financial struggles to the lack of sufficient capital which slows their ability to grow and expand, limited market reach due to poor marketing, lack of clear regulatory policies, and their revenue models needing revamp. 16% of them say they have not grown in the last decade and 8% say they’re unsure if they’re growing at all. “One thing you learn as a founder in Africa is the resilience and grit that’s required, because the market moves crazy, and you need to be crazier than it in some way,” said Ifeoluwa Dare-Johnson, CEO of health-tech startup, Healthtracka. Raising capital is a challenge for most Nigerian startups, with 30% of the startups stating that it took them at least four years to secure their first funding. Founders cited stress, complex processes, and lack of information and access to investors as reasons why they’ve been unable to raise capital. 11% of the founders surveyed who started their companies in 2024 said they did not require external capital—funding their operations through personal savings or alternative forms of financing. Other founders said the high interest rates have deterred them from seeking funding opportunities with venture capital (VC) firms. “People who raised money in US dollars, who are earning in Naira, and who have to report to investors who invested in US dollars, need to be doing almost three times more work and earning three times more income because the currency has devalued by more than 70%,” said Femi Longe, co-founder and non-executive director of Nigeria-based accelerator, CcHub. Yet, there are signs that founders are adjusting to the whole process of raising capital, as nearly one-third of them raised money to run their startups during their first year. Beyond VC funding, alternative funding sources have played a role in driving growth for Nigerian startups. Angel investors (including family and friends) have been the most significant contributors, supporting 43% of startups, while 18% have turned to debt financing, and 15% have relied on grants to lift off. Talent churn, another problem particularly common in marketing departments which has led to inadequate marketing activities, has stalled visibility and growth for these startups. This could be due to the lack of any identifiable company culture as they struggle to retain talent. 20% of these Nigerian startups admitted to not having any identifiable company culture. The flying remote work culture and the transferability of tech skills into different roles and industries have made job-hopping easier. Companies without a strong culture that prioritise employee welfare, stability, job engagement and satisfaction, as well as offer no clear route to career advancement, will bear the brunt of talent loss. “Culture is what your company rewards and what your company punishes. So, the kind of behaviours that get you promotions and bonuses are the behaviours that, over time, get embedded into the company culture,” said Tomiwa Aladekomo, CEO of Big Cabal Media. Founders also highlighted the regulatory environment of Nigeria as one of the barriers to business growth. Taxes, compliance requirements, and licencing processes are particularly challenging for these businesses. Yet, founders hope that things will change soon, with some calling for stronger collaboration with policymakers under the Nigerian Startup Act, aimed at simplifying regulations and supporting innovation. “It’s still day zero because if you look at our trajectory against other markets like India and Latin America, they’re probably 10-15 years out so it’s still a journey to go,” said Olumide Soyombo, founder of Voltron Capital.
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