How to tap into FULIZA loans 2023
To help its M-PESA customers make purchases when they don’t have enough money in their account, Safaricom offers a continuous overdraft service called FULIZA. The FULIZA’s M-PESA overdraft service is available to customers who are registered M-PESA users with a valid Safaricom M-PESA line. And in order to make use of the overdraft service, customers will have to opt-in. Here, we’ll cover how to tap into the FULIZA loan M-Pesa feature. Eligibility for FULIZA Please note the following eligibility points for the overdraft service: While anyone who has activated M-PESA with a national ID, Kenyan passport, or Military ID can use FULIZA, not everyone who activates FULIZA will be approved for a loan immediately. Accounts on M-PESA created with a non-Kenya passport will not be able to activate the overdraft service. After signing up, you’ll be given a limit that determines how much of an overdraft you can access. Accessing FULIZA Follow these steps to get started with the loan service: Dial *334#/*234# Select Loans and Savings then navigate to FULIZA Opt-in to access the amount limit you have been given. Other notes about the loan service Here are other points to bear in mind regarding FULIZA: As long as it doesn’t go over their allotted amount, customers can make as many FULIZA loan requests as they like. A user can send funds to both verified and unverified recipients from the loan. Customers using the loan feature can use it to pay to Lipa Na M-PESA, buy goods and paybill, buy airtime for themselves and other via USSD or M-PESA APP There is an initial 1% entry cost, and then a daily maintenance fee of 1% beginning at 00.00 hours the next day. The access cost paid by a Customer additionally includes an excise levy of 20%. Customers who use the M-Pesa loan service and repay before the next day at 00.00hrs will only be required to pay the access fee and maintenance on the outstanding amount. What’s the FULIZA limit? A FULIZA limit will be assigned to a customer who has been using the network for at least six months depending on the usage of their line at the time of activation. Those who have been using the service for less than six months will have no access to using the overdraft services. Meanwhile, when you eventually have access to the loan feature, your first borrowing limit may be pretty low. So to increase your overdraft limit, you must maintain active use of Safaricom and M-PESA services, as well as timely repayment of your FULIZA M-PESA facility through M-PESA top-ups. Keep in mind that your FULIZA limit can go up or down depending on how much you borrow and how quickly you pay it back.
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How to check SRD SASSA status online 2023
The South African Social Security Agency (SASSA) provides financial assistance to vulnerable individuals through the Special Relief of Distress (SRD) grant. Checking your SRD SASSA status is essential to ensure that your application has been processed and to determine the progress of your payment. In this guide, we will walk you through the step-by-step process to check your SRD SASSA status. 1. Understanding the SRD SASSA grant Before we delve into the process of checking your SRD SASSA status, let’s briefly understand what the SRD grant entails. The SRD grant is a temporary relief measure implemented by SASSA to assist certain individuals affected by the COVID-19 pandemic. It aims to provide financial support to those who are unemployed, do not receive any other form of income, and do not qualify for other social grants. The grant application is slated to end in March 2024. 2. Check SRD SASSA status online This step requires you to visit the SASSA website first. So open your preferred web browser and visit the official SASSA website at https://www.sassa-status.co.za/ or https://srd.sassa.gov.za/sc19/status. Find the status-checking portal. This section is titled “Check Status”. Provide the necessary details: Enter the required information, such as your ID number and cellphone number. Ensure that the information you provide is accurate. After you double-check the information you have entered, and you are confident it is correct, click on the “Check Now” or “Submit” button. Review your SRD SASSA status: After submitting your details, the portal will display your SRD SASSA status. This could include information about the progress of your application, the payment date, or any additional instructions. 3: Check your SRD SASSA status via WhatsApp For some reason, you may not be able to use the portal, but there’s an alternative. The mobile messaging app WhatsApp also allows you to check your SASSA application status. Simply text the word “Sassa” to the 082 046 8553 number associated with the Sassa WhatsApp service. Type “Status” in your reply to any prompt you receive. Then respond “Yes” if you have a reference number which should be the next prompt. Then provide the cell phone number you provided in the grant application and follow up with the reference number. Final thoughts on how to check your SRD SASSA status Ensuring you check your SRD SASSA status is crucial to stay informed about the progress of your application and that you receive the financial assistance you need. By following the step-by-step guide provided in this article, you can easily check your SRD SASSA status online or via WhatsApp. Remember to have your personal details and application reference number ready for a smooth and hassle-free experience.
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Tech builders in Nollywood are trying to solve the industry’s production and distribution problems
Nollywood is the second largest in the world and contributes 2.3% to the GDP, and now filmmakers are creating startups to develop niche solutions for the industry. Last year, Nollywood, Nigeria’s film industry, made 1,923 movies, according to the National Film and Video Censors Board (NFVCB). That made Nollywood the second most prolific movie industry after Bollywood and before Hollywood, yet Nollywood struggles with box office revenue. In 2022, Hollywood made $7.37 billion, while Bollywood made $1.28 billion. The difference is glaring when placed beside the $203 million Nollywood made in the same year. Chart by Muktar Oladunmade, TechCabal A lot of issues can be blamed for this disparity. There are not enough cinema screens in the country; the consumer market is dwindling; there is a lack of quality control and avenues for feedback; there is a lack of patient funding; and creatives lack access. However, some filmmakers are taking matters into their own hands, using technology to solve some of these issues. At The Annual Film Mischief (TAFM’23) FilmTech Conference, a gathering of technology enthusiasts in Nollywood, you would be forgiven if you thought it was not a gathering of creatives. Armed with pitch decks, presentations, and reports, movie industry enthusiasts showcased how their startups use technology to solve critical problems in the Nigerian film industry. Ojie Imoloame, the conference’s convener, told TechCabal that the conference was designed to showcase “the overwhelming opportunity in the film and creative space overall using technology”. Amazon Prime Video commissions Nollywood’s Nemsia Films for 3 films Seun Afolabi, a Yoruba film director at the FilmTech conference, shared that he attended the conference to learn how to use technology to improve his craft. “Most of the Yoruba movies you see are done in four days, but I want my movies to stand out. The world is smaller now; Spielberg (an American filmmaker) can load up Amazon Prime and watch Nigerian movies. I want him to see my movies and be impressed.” Imoloame added that the conference also sought to bring like-minded creatives together to discuss how to advance Nollywood. “We were lucky to assemble virtually all the filmtech startups for a deep-dive conversation into startup building in this space,” he shared. One of the startups present at the FilmTech conference was Albantsho, an online screenwriting discovery platform that uses scriptwriting software and a story marketplace to help screenwriters create and sell their scripts. Julie Ako, Albantsho’s cofounder, told TechCabal that a lack of avenues for her as a screenwriter to sell her scripts led to her starting Albantsho with her cofounder, Nikita Mokgware. “Albantsho stems from my experiences as a screenwriter and filmmaker and the realisation that there were limited avenues for selling our scripts. This challenge wasn’t unique to us; many screenwriters and film creatives across Africa faced similar struggles,” she said. Albantsho also connects screenwriters together. “We often operate in silos, which hinders collaboration and growth,” Ako added. When asked what the proudest moment she experienced with her startup was, she told TechCabal that after launching a test version of the Albantsho platform, the startup brought 20 writers and film producers together for a programme last year and sold 10 scripts developed through the programme. For Chidinma Igbokweuche, a cofounder at Nollydata, a first-of-its-kind database for Nollywood movies, cast, and crew, her startup resulted from necessity. She told TechCabal that her filmmaking process was hindered by a lack of access to information as a writer, director, and producer. “When I wanted to make my first short film, finding information about the industry, the right cast, and their contact information was difficult. So I partnered with one of my cofounders, Ibrahim Suleiman [an actor], to solve this problem from different angles (behind and in front of the camera) with Nollydata.” Nollydata, styled after IMDb (an online movie database), is also building a community where filmmakers can interact with audiences and get real-time feedback, according to Igbokweuche. But things have not always been rosy. For her and Ako of Albantsho, funding has been a significant roadblock. Victoria Popoola, co-founder and CEO of TalentX Africa, a film-financing marketplace, told TechCabal that traditional financing institutions often demand collateral exceeding 120% of the film budget, making funding inaccessible for most industry participants. “Our survey in 2021 revealed that over 70% of creatives rely on self-funding or support from family and friends,” she added. Popoola says TalentX has invested over ₦400 million in Nollywood within two years. Some of the projects they have funded include Ba Ni [Mud Clan], produced by Anita Abada, which received multiple nominations at the 2022 AMAA Awards and won Best Feature Film at the Nollywood Week Film Festival in Paris. However, within that period, she shared that TalentX’s biggest problems were related to data and distribution infrastructure. “We have problems finding accurate and reliable data about the industry, making it difficult to make informed investment decisions, measure the success and impact of films, assess profitability, or make data-driven improvements,” she said. To remedy this, TalentX has “started gathering our data and leveraging our team’s industry expertise to build our early structures”. Distribution has typically been a Nollywood problem. Compared to the United States, which has over 40,000 cinema screens, Nigeria only has 251. As a solution, Popoola told TechCabal that TalentX is “building out an in-house distribution network that we have now leveraged for some of our funded projects”. Imoloame told TechCabal that he believes technology can be used to solve Nollywood’s problems and “solve them at scale”.
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It’s Africa’s time to lead, Lagos Governor tells GITEX Africa
Africa is ready to own its narrative in the global technology story. This was the clear message on the first day of GITEX Africa, the continent’s largest business and tech conference, taking place in Marrakesh, Morocco. Aziz Akhannouch, the Moroccan Head of Government, inaugurated the debut edition of GITEX Africa as influential role players from the global and African tech ecosystem converged for the first time to discuss digital transformation in the world’s rising innovation economy. West Africa shines at GITEX Africa Akhannouch welcomed 900 exhibitors and start-ups, 250 leading investors, 250 conference speakers, and 30 ministerial delegations while attracting tens of thousands of attendees from 120 countries. West Africa made a strong impression at the conference thanks to Lagos State Governor Babajide Sanwo-Olu, who delivered an inspirational message to his fellow African leaders and role players. “The fact that this conference has been brought to Africa is a testament to the continent’s growing importance in the global technology and start-up ecosystem,” Sanwo-Olu. “Africa is on an accelerated path to becoming the next Silicone Valley. The tech-enabled sector in Nigeria is experiencing unprecedented growth with record investments and expansion.” Sanwo-Olu words captured the sense of optimism and belief wafting through the halls of GITEX Africa among the thousands of VIP delegates, speakers and media. In 2020, African start-ups attracted investment of $1.3 billion, rising to up to $4 billion in 2022, Sanwo-Olu explained. Lagos State Governor Babajide Sanwo-Olu. Credit: @jidesanwoolu Sanwo-Olu pays homage to Africa’s youth The Lagos Governor, who is serving his second term, paid particular attention to Africa’s youth under 25, who make 60% of the continent’s population. “Our people are one of the strongest catalysts for development in the last 3 to 4 years. This is a significant opportunity for growth and development in the technology industry. According to reports by Partech Africa, Africa has 40% growth in tech start-ups in the last 2 years. We’ve seen over 600 of them across the continent. The majority of first-time tech founders are under 35.” Akhannouch echoed Sanwo-Olu’s comments and optimism about the continent’s future in tech. “Africa has increasingly worked to consolidate its position as a dynamic environment that supports innovation, and in this regard, GITEX Africa is an occasion to highlight the promising potential of the African continent and its accelerated efforts in developing talents and skills in the fields of technology and innovation.” For more on GITEX Africa, follow TechCabal on Twitter for the latest updates.
Read MoreNigeria’s Central Bank denies reports of a Naira devaluation
Daily Trust exclusively reported that a Naira devaluation in the early hours of Thursday. Nigeria’s Central Bank has denied that any such devaluation happened. Nigeria’s Central Bank has denied reports of a devaluation of the Naira that made the rounds this morning. A tweet from the CBN’s handle said, “CBN did not devalue the Naira,” alongside a picture of the front page of a Nigerian newspaper. The Nigerian publication, Daily Trust, exclusively reported this morning that “the CBN devalued the Naira to 630/$1.” The publication based its story on a rate it obtained from the Importers and Exporters window. However, it would seem that the I&E rate that led Daily Trust to believe that a devaluation had occurred was a single, one-off transaction. At the time of this report, TechCabal confirmed that Stanbic IBTC bank, one of Nigeria’s leading banks, has quoted today’s official exchange rate at N464/$1. It means that there have been no official changes in the FX rates. The devaluation reports undoubtedly have their roots in Bola Tinbubu’s swearing-in speech, where he confirmed that his administration will address the current FX policy. Nigeria operates a multiple exchange window, with the official rates (N464) trading well below the parallel market rate (N750). Tinubu’s intention to address the FX policy is curious, given that it is the purview of an independent Central Bank. Nevertheless, the Central Bank has repeatedly been advised by the World Bank to unify the exchange rates. The World Bank and many other leading economists say that multiple exchange rates lead to uncertainty and create room for arbitrage. Nonetheless, the CBN has held firm, retaining a pegged exchange rate. Still, it appears that it may change that position, given Bola Tinubu’s swearing-in speech. The new President began by declaring an end to fuel subsidies, with the country’s petroleum corporation announcing new and increased fuel prices on Wednesday. That move, alongside an earlier report by Bloomberg that a 15% devaluation of the Naira is among Tinubu’s earliest priorities, may have led observers to believe that the now-debunked news of the devaluation.
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👨🏿🚀 TechCabal Daily – Fuel Rush
Lire en français Read this email in French. 1 JUNE, 2023 IN PARTNERSHIP WITH Happy new month Here’s your weekly reminder to catch our shows on YouTube. If you want to see what startups are doing in Africa, then My Startup in 60 Seconds is the way to go. And if you’re looking to work in these startups and gain the skills needed, then you should check out Entering Tech. The great news is all the videos are one-minute each. In today’s edition Logistics services fees balloon in Nigeria Eskom suffers from fuel price inflation Starlink is adding naira cards soon Theranos founder starts prison sentence The World Wide Web3 Event: The Moonshot Conference Opportunities NIGERIAN LOGISTICS SERVICES TO INFLATE COSTS BY 20–50% Nigeria’s newly elected president, Bola Ahmed Tinubu, is kicking off his regime on a high note. Literally. The cost of fuel has skyrocketed to over ₦600 ($1.60) per litre from ₦185 ($0.40) since President Tinubu announced the removal of fuel subsidy, yesterday. Logistics service providers now say that this will result in a 50% increase in logistics service prices. Side bar: The federal government of Nigeria has been shouldering a significant portion of the actual cost of fuel. This has kept fuel prices artificially low for decades—between ₦25 ($0.054) to ₦185 ($0.40) per litre. But worsening government finances means that fuel subsidies no longer make financial sense. A fuel rush: This removal is not the new president’s idea, though. This change was bound to happen in June through the implementation of the Petroleum Industry Act. PresidentTinubu’s announcement may only have pushed the timeline up a couple of weeks—and prompted a mad rush to fuel stations. The new pump prices for fuel will range between ₦488 ($1.08) and ₦550 ($1.19) per litre, but some fuel stations are already charging more than that, even ahead of schedule. Like a baton, the price increases will be passed on to customers of transportation services. Bolt and Uber prices are already noticeably higher than last week. Logistics startups told TechCabal that customers should expect a 20–50% increase in delivery prices. MONIEPOINT RANKED 2ND FASTEST-GROWING AFRICAN COMPANY Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. This is partner content. ESKOM SUFFERS FROM FUEL PRICE INFLATION Fuel is also burning holes in government pockets in other African countries. Per TechCentral, the expenses of South Africa’s state-owned power utility, Eskom, paid a staggering R21.4 billion ($1.08 billion) in the 12 months leading up to March 2023, compared to the previous annual expenditure of R10 billion ($505.7 million). Why? The price of fuel has skyrocketed, and Eskom needed a lot of fuel to keep its open-cycle gas turbines running during peak-demand periods. Moreover, Eskom reportedly had to cater for unexpectedly higher volumes of operation than initially budgeted for. There’s more: Eskom’s fleet of primarily coal-fired power stations has been breaking down frequently resulting in unprecedented levels of blackouts, which have greatly affected the economy. South Africa’s central bank estimates that these power outages will shave off a significant two percentage points from South Africa’s economic growth this year. Really bad numbers: The energy availability factor, which measures the usable capacity, plummeted to 56% during the financial year. Eskom’s loss before tax has almost doubled, skyrocketing from R11.9 billion ($601.8 million) to a staggering R21.2 billion ($1.07 billion). To add fuel to the fire, gross debt securities and borrowings have surged by 11%, reaching a jaw-dropping R439 billion ($22.2 billion) in the year leading up to March. The rand has taken a significant hit this year, plunging by almost 14% against the mighty dollar. MORE FROM TECHCABAL Kenyan content creators are pushing back against proposed taxes. A last-minute increase in Nigeria’s borrowing threshold raises concerns over rising debt. STARLINK TO ACCEPT PAYMENT FROM NAIRA CARDS Starlink is on the verge of approving payments made with naira cards. In an email, the Elon Musk-owned internet company informed customers of its plans to process payments in naira, including more local cards in Nigeria. By June 6, customers will need to update their payment information on their account. This update is being implemented in response to customer feedback and may also be influenced by the challenges faced by Nigerians in purchasing the product due to restrictions. ICYMI: In March, Payfi and SD Global Impact Services Ltd (SDG) joined forces to provide Nigerians with the option to purchase Starlink devices in instalments using naira cards. This arrangement was introduced shortly after the launch of Starlink in Nigeria, as there were restrictions on naira cards for making purchases in dollars. Zoom out: Starlink received approval to launch in Nigeria in May 2022, and it started operating officially In January 2023. The one-time hardware officially costs ₦268,584 ($584) while its monthly service fee costs ₦19,260 (41$). Given the country’s current ban on international transactions on domestic cards, Nigerians have been paying more than the official rate. Except for those with domiciliary cards, users might have to pay up to ₦440,000—equivalent to $956 at the Central Bank of Nigeria’s official rate of ₦460 to $1—when using virtual dollar cards that offer parallel rates as high as ₦743 to $1. ELIZABETH HOLMES BEGINS PRISON SENTENCE Theranos founder Elizabeth Holmes began her 11 years and three months sentence in a Texas prison yesterday. Holmes is being incarcerated for defrauding investors in a failed blood-testing startup—Theranos—once valued at $9 billion. A quick recap:In November 2022, Elizabeth Holmes, the founder of Theranos, was sentenced by a federal judge to prison. This came after she was convicted by a jury in January 2022 on three charges of investor fraud and one charge of conspiracy. The trial, which lasted three months, led to her conviction and subsequent sentencing. The downfall of Theranos: At the young age of 19, Holmes founded Theranos, a company that claimed to revolutionise blood testing. With a technology promising to scan for hundreds of
Read MoreA last-minute increase of FG’s borrowing threshold raises concerns over rising debt
Nigeria’s senate has raised the Ways and Means provision from 5% to 15% prompting important questions about rising debt and inflation. Two days before the start of Bola Tinubu’s Presidency, members of the Nigerian senate held an emergency meeting to amend the Central Bank of Nigeria (CBN) Act. Presided over by the Senate President Ahmad Lawan, the Senate raised the Federal Government’s threshold for borrowing money from the CBN. The government borrows from the Central Bank through Ways and Means advances. For years, ways and means loans are capped at 5% of the government’s revenue from the previous year. The Senate amendment has now raised that limit to 15% despite the fact that President Buhari’s administration borrowed a record N22.7 trillion from the Central Bank. Section 38 of the CBN act says that whatever advance the CBN gives to the Federal Government must be repaid at the end of the financial year in which they are granted. But the Buhari’s adminstration’s excessive borrowing meant this was often impossible. In the end, the Senate also approved a request to restructure the N22.7 trillion loans as bonds. Money printing worsens inflationary pressures Ways and means advances are often referred to as “money printing.” While the Central bank doesn’t literally print the money it loans the government, the manner in which it funds the country’s budget deficits increases money supply. This increase in money supply without a corresponding increase in outputs often triggers or worsens inflation. A 2022 report by the World Bank and the European Intelligence Unit (EIU) pointed out that, “The CBN has continued to print money for the Federal Government…continued printing of money at the same time as tightening policy would prevent effective control of the price level.” Sheriffdeen Tella, a professor of Economics, makes a similar argument. According to him, “The amendment of ways and means is bad for the economy. Ways and means financing is inflationary. It allows the government to be carefree with borrowing for consumption.” Ugochukwu Obi-Chukwu, the Founder of the publication, Nairametrics, believes the increase in Ways and Means advances is worrisome. “Currently, Ways and Means is N22 trillion, if we are to start to payback, we are looking at N2.2 trillion annually on Ways and Means alone. There is also public debt to be serviced. In terms of fiscal revenues, it is bad.” The Central Bank will remain in the limelight Godwin Emefiele’s time as Central Bank governor has been complicated. Despite starting out with promise, he’ll be remembered for a failure to rein in inflation, which stands at 22% today, poor FX policies, and reducing transparency at the Central Bank. Notably, Emefiele has contributed to a massive increase in government’s borrowing, allowing ways and means advances to often cross the 5% threshold. Those advances were also left unsettled at the end of the financial year as prescribed by the constitution. When Emefiele leaves office later in June, there’s no doubt that the Central Bank will continue to play an outsized role; he has set the precedent. Under Emefiele, the CBN funded agricultural schemes like Anchor Borrowers Program (ABP). It also dabbled into the manufacturing and energy sectors, extending a total of $9bn in loans to these sectors. As the Tinubu government gets down to work and to the critical question of how to fund budget deficits—which will remain high even when subsidy payments end—it will know that it can lean on the Central Bank to print more money. Raising the ways and means threshold to 15% against a backdrop of a Central Bank that has not said no to the Federal Government in years may lead to more borrowing and even worse inflation.
Read MoreTaxing creativity: Kenyan content creators pushback against proposed taxes
Kenyans are opposed to the proposed Finance Bill 2023, which aims to take more money from their already thin pockets. The proposal also wants to receive revenues from content creators and could kill the launch of an intended $40 smartphone. Kenya’s Finance Bill 2023 proposal has received negative coverage over the last couple of days and for good reason. It proposes ways to increase the tax base, targeting previously untaxed areas that have since boomed, such as online content creation. The proposed tax policy wants content creators such as bloggers, YouTubers, and social media influencers to pay taxes based on their revenues. The proposed regulations mandate content creators to register with tax authorities and fulfil their tax obligations. While the government’s rationale is to profit off a growing digital economy, content creators are worried that new taxes amount to multiple taxation. In 2020, Kenya introduced two taxes for the digital economy: Digital Service Tax and Value Added Tax on Digital Marketplace Supply. Resident and non-resident entities providing digital services in Kenya pay Digital Service Tax (DST) at a rate of 3.0% of the total transaction value. Non-resident digital marketplaces also pay Value Added Tax (VAT) of 16% on taxable services provided to Kenyan residents. DST and VAT on Digital Marketplace Supply (VAT-DMPS) are paid by the 20th day of each month. The recently proposed amendment for the Financial Bill 2023 introduces two additional digital taxes. First, a 3% tax will be imposed on transferring crypto and NFTs. Also, a 15% tax will be levied on digital content monetisation, which includes payments made to content creators for promoting and advertising products and services online, such as sponsorships, affiliate marketing, merchandise sales, and paid subscriptions. These taxes are different from DST and 16% tax on digital services. If approved by Parliament, the taxes will be effective from July 1. “While everyone thinks I’ll wake up on July 1st a happy man, I’m worried about the people I have to pay every month. I have no idea how I’m matching Ruto’s terms. I’ll either review contracts to change terms of operation or terminate them,” says one of Kenya’s leading online content creators. “Now I understand why entrepreneurs elsewhere take jobs outside their home countries. I can’t allow myself to suffer willingly because of the government,” adds the creator. The bill makes a $40 smartphone an impossibility Under the proposed amendments, taxes will also be levied on imported raw materials used to assemble devices like smartphones. This new tax is linked to Kenya looking to assemble smartphones locally starting in July, which should cost $40. However, partners involved in the project warned the government that the $40 cost would not be achieved thanks to additional taxes proposed in the bill. Recently, telco Safaricom asked the parliament’s finance and planning committee to revise the proposed tax rates in the Finance Bill 2023 to achieve the goal of $40 smartphones. During public hearings, Safaricom’s head of venture, Karanja Gichiri, emphasised the need to address import, excise, and VAT concerns to align with the president’s vision of affordable phones. Gichiri proposed reducing taxes to KES 3,000 ($27), resulting in a final price range of KES 6,500 ($47) to KES 7,000 ($51) for locally assembled smartphones. Audit firm PwC representative Job Kabochi also suggested amendments to the VAT Act and Excise Duty Act to incorporate locally assembled and manufactured phones. Housing fund The bill further introduces a proposal to fund Kenya’s affordable housing initiative through a 3% monthly contribution from employees’ basic salary towards the National Housing Development Fund (NHDF). According to the bill, the employer will contribute 3.0% while the employee will be responsible for another 3.0% of the contribution. This has been a controversy that continues to be debated as many people do not want to take part in it. For instance, matching housing fund contributions for 10 employees is equivalent to employing one minimum wage worker, which is unreasonable. With a struggling economy and rising costs, businesses may have to let go of an employee to meet statutory obligations. Employers will share the burden of mandatory deductions with NHDF. This will reduce employee pay and require employers to match contributions. As a result, companies may face higher costs, leading to possible hiring freezes and job cuts. Employees may also seek pay raises to offset the increased deductions. When you see it. The president is really pushing this silly housing agenda down our throats. Update already on eCitizen. #RejectFinanceBill2023 pic.twitter.com/eMXjgtAfvR — Kanali (@NicKanali) May 31, 2023 The fund continues to attract controversy from Kenyan content creators Increased taxes and prices are already affecting consumers and businesses, making higher prices undesirable. The impending 16% VAT on petroleum products will further raise petrol prices, which affect the cost of other goods and services. It is understandable why Kenyans do not want to be associated with the proposal and why it could adversely affect both workers and employers if the bill is enacted. Online protests, particularly on Twitter, can be observed through the trending hashtag #RejectFinanceBill2023. The government of Kenya Kwanza through Boya Yangu is actually building concrete slums. How do you even expect someone to stay in a 30 sqm 1 bedroom house? Is there a room for even turning around in this house? 40 sqm for 2 bedrooms? WTH is this? #RejectFinanceBill2023 pic.twitter.com/RxWFEBjXOI — Robert ALAI, HSC (@RobertAlai) May 31, 2023 A section of Kenyan politicians are not happy about NHDF TechCabal is following the bill’s progress and whether it will be signed by President Ruto or rejected in the coming weeks
Read MoreAs new fuel prices hit N488 per litre in Lagos, Logistics startups will increase prices by 50%
“Fuel subsidies are gone!” With those words, an otherwise unexciting first speech by President Bola Tinubu soon became a trending topic. While the removal of fuel subsidies was written into law through the Petroleum Industry Act, it was due to happen in June. Bola Tinubu’s announcement may only have pushed the timeline up a couple of weeks, but it prompted a mad rush to fuel stations. The Federal Government has kept fuel prices artificially low for decades—between N25 to N185 per litre. But worsening government finances means that fuel subsidies no longer make financial sense. A BusinessDay report has now confirmed that the new pump prices for fuel will range between N488 to N550 per litre. While fuel price increases will affect every aspect of the Nigerian economy, the logistics and transportation sector will arguably feel the impact first. Logistics startups that spoke to TechCabal say they will raise prices this week and are preparing for a slowdown in delivery requests in the short term. Emeka Mba-Kalu, the CEO of Sendstack, a Lagos-based logistics startup, told TechCabal that many logistics companies accepted the inevitability of fuel price increases. He said, “Cost of fuel remains in our top two drivers of operating expenses, so we have watched the progression of the fuel subsidy conversation.” Price increases will be passed on to customers Mba-Kalu shared that logistics startups will likely respond with a 20-50% increase in delivery prices. The average delivery prices in Lagos range from N1,500 for short distances like Yaba to Ikoyi to N3,000 for deliveries across longer distances like Ikeja to Lekki. Teniola Olugbode, a Lagos-based entrepreneur who runs Tamak Logistics, told TechCabal that his company is still analysing the situation. “We intend to raise prices on Friday, and at the moment, it feels like we have to double the prices of deliveries along all our existing routes. The new fuel price of N488 per litre means that an input cost has nearly tripled.” Olugbode also admits that a short-term slowdown in order volumes will almost certainly follow price increases. A short-term slowdown is inevitable Olugbode told TechCabal, “We expect many customers to pull back at first. There will be an immediate drop in deliveries and requests because people will look for alternatives or think twice about whether they need an item delivered. It’s a position Sendtack’s Mba-Kalu agrees with. According to him, “It is also possible that price-sensitive customers draw back on their demand for logistics services, which would further affect startups. But we can’t say for sure; the next few months will tell.” In the interim, logistics companies will have to think quickly. Olugbode says that Tamak will start to talk up its bulk-delivery services, which offer lower prices for several deliveries to a particular location. The price hike may also force delivery companies to discontinue same-day deliveries for non-essential items. For now, many companies are still in their strategy rooms debating how to adapt and remain competitive. For mobility services like Bolt and Uber, prices are already noticeably higher than last week. Both companies are yet to comment on the fuel price increases publicly.
Read MoreSA turns to tech to combat crime, as murder rate reaches 60,000 in 90 days
South Africa’s law enforcement agencies are integrating technology, including drones, to combat crime in the country. According to the latest statistics from the South African Police Service (SAPS), more than 6,200 people were murdered between January and March 2023—an average of about 70 murders a day. In the same time period, 10,500 cases of rape were also recorded, an average of 116 cases a day. With such high figures being recorded while other preventive measures not having the most effects in curbing crime, the SAPS seem to be willing to embrace technology as a solution. Speaking at the presentation of the crime statistics, minister of police Bheki Cele stated that law enforcement would henceforth be incorporating numerous technologies to tackle the problem of crime in South Africa. Among the technologies touted by Cele include the use of drones as well as the use of highly specialised teams “who will be trained further at provincial and district level, to effectively track and apprehend offenders”. “The SAPS is also purchasing unmanned aerial vehicles or so-called drones to better police from the sky. More drone pilots are also being licensed and drone pilot interns are being recruited. Body-worn cameras as well as shot spotters in high-density crime areas are being prioritised,” said Cele. Last week, the Gauteng Department of e-Government stated that it would allocate a budget of R1.7 billion (~$86 million) to various “e-policing” initiatives including CCTV deployment, drones, and “tracking technology to keep tabs on vehicles, firearms, and other assets used to fight crime to enhance oversight over its strategic assets”. Additionally, the department will also seek to introduce an “e-panic button” which would be linked to law enforcement agencies, CCTV, and a new state-of-the-art Integrated Command Centre in hopes to vastly improve response time to criminal complaints.
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