🚀Entering Tech #68: Who’s to blame for “oga-driven” development?
Here’s how to step up your game as a product manager. 29 || June || 2024 View in Browser In partnership with Issue #68 Can PMs fightoga-driven development? Share this newsletter Greetings ET people If you work in a startup, then you should be familiar with today’s topic: “Oga-Driven Development.” Have you ever battled principalities and powers (sorry your CEO) at work on whether or not to build a product? For those unfamiliar with the term, “oga” is a Nigerian pidgin word for “boss” or “superior”—like your CEO. So, what happens when product decisions are primarily driven by your boss’s gut feeling rather than data, user needs, or team insights? (Do they get these ideas from their dreams?) And how does that affect your work as a product manager? Sometimes founders think these product features will get them closer to their goals—or maybe they think it is the next best thing since sliced bread. Temi Giwa’s article on why this phenomenon might indeed be the PM’s fault had people arguing on Twitter. In the article, Temi says that every bad feature is (not) the fault of the PM who built it and that “training schools are churning out product management certificates but their graduates can’t get a job as a PM.” Whether you agree or not, we are not here to judge you. We spoke to Temi herself, a product lead at Paystack, Karen Ginigeme, an experienced product manager in the UK, Elizabeth Ajao, an award-winning product manager, and our very own product manager at Big Cabal Media, Chioma Nwandiko, to share their thoughts. Faith Omoniyi & Emmanuel Nwosu What is “oga-driven” development? (ego-driven development) Your job as a product manager is to build a great product. And your CEO’s job is to show you the vision for the product that you want to build. Sometimes, your ideas on what you think your company needs at a particular time might differ from your CEO’s vision, even though you both want the same thing. Often, your boss has a strong opinion about what features should be built or how the product should work, and these opinions drive the development process, even when the opinions are wrong. GIF Source: @omotayo.ade (TikTok) Now, you might be thinking, “Isn’t that how it should be? The boss knows best, right?” Well, not always. CEOs in startups are typically the first product owners, meaning they play a key role in decision-making. Sometimes, shedding that responsibility fully might be hard for them, even after they’ve hired a product manager. However, as specialists, product managers play a key role in developing and implementing (new) products and features. As a product manager, you’ve got a unique perspective that even the CEO might not have. You’re talking to users, getting feedback, looking at data, and working closely with the development team. All of these inform you with perspectives that might be different from your boss. But here’s the tricky part: Your boss isn’t always wrong. Sometimes, they have insights or visions that could take the product to the next level. The challenge is figuring out when to push back and when to get on board. It’s like a dance. You need to learn how to move with your oga’s rhythm while also guiding them toward what you believe is best for the product and the users. In data, we trust There is an office lingo that goes, “In God we trust, everybody else must bring data.” In one of her “oga-driven development” experiences, Temi shared an instance when her boss wanted to build an exciting product. She didn’t have faith in what they were building and raised it with her boss after running the numbers. Temi Giwa “We were going to burn money for the next five years,” she shared. She asked questions about her CEO’s decision, and allowed them to convince her. It reminds us of this funny video that shows a product manager’s reality in tech companies that want to prioritise generative AI for their product roadmap because it’s trending right now. When things aren’t all it seems with a product your boss wants to prioritise, ask questions about what they think the product or feature addition will do for the company, what other success metrics you can use to rate that decision and run tests on a smaller scale. There are two sides to this outcome: It is either you key into their vision for the product, or convince them why that addition is a bad idea. But, do you stand any chance to control product development decisions as an entry-level product manager? Expert PMs who spoke to us all agree that when you get hired in a tech company as a product manager, you must spend time building stakeholder trust. You do this by communicating effectively. When we pressed further, Elizabeth shared that she had worked with bosses who gave her product ownership, and she had also worked with others who didn’t shed the same level of authority as her, no matter what lengths she went to. She advised new PMs to focus on building friendly work relationships with their bosses. One thing product boot camps don’t teach you is how to build this trust. Product managers are domain experts in any product they build. *Newsletter continues after ad Attend the Mastercard Foundation EdTech Conference The Mastercard Foundation is hosting its inaugural EdTech Conference from July 8 – 10, 2024 at the Transcorp Hilton in Abuja, Nigeria. The Mastercard Foundation EdTech Conference, in partnership with the Federal Government of Nigeria, is themed ‘Education Technology for Resilient and Inclusive Learning in Africa.’Expect conversations on the current state of the EdTech ecosystem, emerging trends, the role of EdTech in solving Africa’s educational challenges and much more. Click here to find out more. How to balance influence Three main levers contribute to excellence as a product manager: bravery, domain expertise, and top-notch collaboration skills. These factors affect the work you do, and how other stakeholders and higher-ups are able to trust your
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Two ways to check 2024 supplementary JAMB results
The Joint Admissions and Matriculation Board (JAMB) has officially unveiled the results for candidates who participated in the supplementary Unified Tertiary Matriculation Examination (UTME) held from June 21st to June 22nd, 2024. This supplementary exam catered to 28,835 candidates who encountered biometric verification issues during the main 2024 UTME. Additionally, it offered a second chance to candidates suspected of involvement in examination malpractice during the primary UTME. Here, we show you ways to check 2024 supplementary JAMB exam results. Admonition to candidates Candidates are strongly advised to avoid any form of misconduct after these examinations. These include: Refraining from seeking score upgrades from unauthorized persons Attempting to alter their result sheets to display falsified scores. Procedure to check supplementary JAMB results 2024 Here are the two SMS options to check your 2024 UTME supplementary results: Using 55019: 1. Ensure you use the phone number associated with your registration profile. 2. Text `UTMERESULT` to `55019`. 3. Wait for a response with your supplementary UTME results. Using 66019: 1. Ensure you use the phone number associated with your registration profile. 2. Text `UTMERESULT` to `66019`. 3. Wait for a response with your supplementary UTME results. This process allows candidates to promptly verify their outcomes and plan their next steps accordingly. What to do if you can’t access your results via SMS If you are unable to access your 2024 supplementary UTME results via SMS, consider the following steps: 1. Check your network connection: Ensure your phone has a strong network signal. 2. Verify your phone number: Make sure you are using the phone number associated with your UTME registration profile. 3. Retry after some time: There might be temporary network issues. Wait a while and try sending the SMS again. 4. Contact support: Reach out to the UTME support team or customer service for assistance. They may provide alternative solutions or help troubleshoot the issue. Final thoughts on how to check 2024 supplementary results Please note that there will be official announcements if there are any alternative methods for accessing UTME 2024 results. But for now you cannot check on the official JAMB portal, only SMS option is available.
Read MoreKano is becoming one of Nigeria’s biggest startup cities
This year, Kano entered the list of top 1,000 startup cities in the world for the first time. In the past four years, the city, known as the commercial capital of northern Nigeria, has seen a spike in startup activities, owing to the success of pioneer tech entrepreneurs and a buzzing tech community. When in 2016 a group of four young people collaborated to build one of the first tech incubation hubs in Kano, they had no idea that this singular goal to participate in the tech revolution happening in the country would become the foundation of the state’s tech ecosystem. In eight years, this hub, Startup Kano, has become one of the biggest in the northern region and the entry-point into tech for over 50,000 youth in Kano, helping early-stage entrepreneurs raise over $1 million for their tech-enabled businesses. A tech ecosystem in Kano is vastly different from ones in other parts of the country, like Lagos or Enugu, and while the growth of the former might have inspired Kano, that didn’t make building any easier. According to Aisha Tofa, co-founder of Startup Kano, there was no blueprint for them in the beginning as the environments were severely different. There was zero tech awareness in Kano communities, and despite its deep entrepreneurial culture, the concept of investing in technology rather than actual brick-and-mortar businesses was still largely absurd. “People understood technology only to the extent of using social media platforms like Facebook,” she said. “Anything outside that and they didn’t trust it.” It took years of radical tech evangelism to draw the interest of young people, and subsequently investors. Now, the state has become one of the top six tech ecosystems in the country, with the most number of startups in northern Nigeria. According to Tofa, what is responsible for the recent push for the tech entrepreneurs in Kano is witnessing the potential of technology for their counterparts in the north. “At first, people didn’t even try. They simply believed that their startups wouldn’t get enough funding or traction for the single reason that they were from the north and not Lagos,” she said. “But when they started to see other founders like them in the northern region who worked hard and got rewarded for it, then they woke up.” In 2022, a mobility startup founded by Kano-born Khalil Halilu won $8,000 for the mobility and smart city category during a GITEX Pitch competition. That same year, another northern startup, Sudo Africa, raised $3.37 million in pre-seed funding. From 2021 to 2024, the number of tech startups in Kano has jumped from five to about sixty. Funding has always been regarded as the principal obstacle to growth in the Nigerian tech space, more so in emerging ecosystems like Kano. In 2023, we wrote that only about 6% of tech founders from the entire northern region had access to venture capital funding. Tofa has a differing opinion. She believes that for an ecosystem like Kano, there are still foundational challenges that still need to be gotten right, like education, mentorship, and creating the right market. “There’s a huge gap between the training and impact we see in the ecosystem at the moment. A lot of us are still using the templates from other places to train Kano youth, and it’s not the right fit,” she said. “Funding is important, but the things we do before getting to where we need funding should also be focused on.” According to another co-founder of Startup Kano, who’d like to not be mentioned, Kano is different and the ecosystem has to adapt to the cultural context of the city to be successful. “When we pitch tech startups as something entirely separate from the regular businesses they’re used to, then it’s even more difficult to work with,” he said. “Startups are basically businesses, which is what we know here [in Kano] and how we ought to operate.” The co-founder, who now bootstraps his own tech-enabled business, shared that funding isn’t as important to him now as finding the market for his product. “Before thinking about raising money from investors, I’m already thinking about how to sell and make my profits directly from my customers, which is exactly how my own father did business,” he said. A lot of things have changed in Kano in the past few years. Beyond an increased number of startups, there are also more incubation hubs, willing investors in the city, and increased interest. “While building is still difficult, it is definitely not as difficult as it was four years ago because there are more resources to help you now,” the anonymous co-founder said. “Global organisations, the government, and even private individuals have seen what’s possible in Kano and want to be a part of it.” Ahmed Idris, founder of Enovate Labs, a non-profit focused on driving innovation, warned that the buzz in the ecosystem shouldn’t be confused with a big change and there’s still work to be done. “The ecosystem is largely still as small as it was years ago, but we’ve seen some unique cases of people and startups who’ve managed to do great stuff,” he said to TechCabal.
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👨🏿🚀TechCabal Daily – Here’s how you can win $5 million
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Please take a couple of minutes to move TC Daily to your Primary mailbox so you don’t miss any of our important emails. Simply drag and drop if you’re on desktop, or click the button on the top right corner and select “Move” or “Mark” if you’re on mobile. This is your final warning . Thank you. In today’s edition Afreximbank gives Zimbabwe’s largest bank $60 million credit Kenya’s returned Finance Bill spells trouble for President Ruto Here’s how you can win $5 million Funding tracker The World Wide Web3 Job openings Economy Afreximbank gives Zimbabwe’s largest bank $60 million credit SMEs in Zimbabwe can cheer for joy as the African Export-Import Bank (Afriexim) has given the country’s largest bank, CBZ Bank, a $60 million line of credit. Think of it like a credit card with a $60 million limit. The borrower can draw on the funds as needed, up to the maximum amount, and only pays interest on the amount borrowed. Afriexim Bank also launched a $20 million Afreximbank Trade Facilitation Programme (AFTRAF) facility at the bank. This timely injection of funds will bring relief to the country’s Small and Medium-sized Enterprises (SMEs), which have been struggling to access financing due to the country’s lingering economic challenges. Zimbabwe’s struggling currency: Zimbabwe has grappled with economic instability for over two decades, characterised by high inflation, currency fluctuations, and a severe drought in foreign investment. The government has implemented several measures to stabilise the economy, including the recent introduction of a new currency, the Zimbabwe Gold (ZiG), to replace the inflation-battered RTGS dollar as the official currency. All that glitters is gold: While the move was aimed at addressing the country’s currency woes, it has had a mixed impact on the economy. The new currency has helped to reduce the demand for foreign currency, but it has also led to a surge in prices and a decline in the value of savings. SMEs, which are the backbone of Zimbabwe’s economy, have been particularly hard hit, struggling to access funding and stay afloat in the face of rising costs and reduced demand. The Afriexim bank funding which will indirectly support export-oriented Zimbabwean businesses is a welcome respite for SMEs in Zimbabwe, providing them with much-needed access to financing. The AFTRAF facility will also let Afriexim Bank back CBZ Bank’s letters of credit, making it easier for them to do international trade deals when other banks are not willing to take the risk. Process payments smoothly with Moniepoint And we’ll have processed almost 5,000 more by the time you’re done reading this. Your business payments can be one of them. Click here to sign up. Economy Kenya’s returned Finance Bill spells trouble for President Ruto If you want to understand why rational people may act in ways you consider irrational, examine their incentives. In yesterday’s newsletter, we ended with this poser about Kenya’s President Ruto: “How did a man who swept to victory on the shoulders of young voters become so reluctant to listen to them?” The answer lies in following the money and economic indices. Kenya had around $80 billion in foreign and domestic debt in 2023. While that number may not tell you much, its debt-to-GDP ratio (73%), a measure that indicates a country’s ability to pay its debts, is more telling. According to a 2020 World Bank analysis, Kenya was (and still is) at high risk of debt distress. As a result, the country’s debt profile was a key issue in the election campaigns, with Ruto promising to cut public debt and slash taxes. But it wasn’t that straightforward. Tax collection as a portion of its GDP (15.2%) had been in decline for years and slashing it would mean the government would need new revenue streams to pay off its debts. In the interim, Kenya needed medium-term funding to shore up a declining economy. The only sustainable source of funding was the IMF. However, the IMF had a few conditions before handing Kenya $3.6 billion: the country had to commit to increasing tax collection and cutting budget spending. Ruto shook hands on the deal and Kenya received around $3 billion. Money in hand, Ruto had to deliver on his pledge to raise taxes and Zakayo went about it quickly. New taxes were introduced in 2023 while some old taxes were resurrected. Still needing to shore up collection, the 2024 Finance Bill which introduced a raft of taxes, was born. The Ruto administration expected the new taxes would bring in $2.4 billion. “When the incentives are crazy, the behaviour is crazy.” No one would have given that up without a fight. Let’s end with another poser: with the tax revenue from the botched finance bill now out of the question, what happens to Kenya’s agreement with the IMF (there’s a last tranche of $900 million yet to be disbursed)? And what new levers can the Ruto administration pull to raise much-needed revenue? Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. Crypto Here’s how you can win $5 million Here’s what $5 million can do for you: Retire now and live on a comfortable income for the rest of your life, buy the latest brand of your dream car…. or you tell me. All this can be your reality if you can provide the US government with useful information that will lead to the arrest or conviction of crypto fraudster, Ruja Ignatova. For a ransom that big, Ignatova must have been a notorious offender. And yes she is a member of FBI’s top 10 most-wanted list of 2022. So who is she? Ignatova has been on the run since 2017 for leading a $5 billion crypto ponzi scheme. The scheme
Read MoreSafaricom under pressure for conflicting explanations over two-hour internet outage in Kenya
Kenyan telecoms giant Safaricom has come under pressure after it released conflicting statements on a nationwide internet outage on Tuesday. The disruption lasted over two hours and coincided with countrywide protests over the now-withdrawn 2024 Finance Bill. On Tuesday night, Safaricom reported an internet outage due to a problem with one of its underground cables. However, internet observatory platform Netblocks disputed this claim, stating no evidence of physical cable damage. Major undersea cable companies serving East Africa, including TEAMs, SEACOM, and Eassy, also didn’t report service disruptions on their cables. The company’s CEO, Peter Ndegwa, later claimed the entire telco industry was affected. However, other internet service providers in the region did not announce the outage, save for Airtel Kenya, which said that its services were intermittent but not completely unavailable. Customers were surprised by how quickly Safaricom fixed the outage, considering undersea cable cuts usually take days or weeks to identify and repair. Telecom companies often have built-in redundancies to handle outages. Safaricom might have been able to reroute traffic through alternative channels while they diagnosed the main problem, which would explain why services were available after a short period Safaricom’s internet disruption irked customers and some of its biggest creative partners, including social media influencers. Tens of them, including former rugby player and chef Ombachi Dennis, cut ties with the company. “I won’t be working with you, as your values are not aligned with mine,” Ombachi posted on X. Some Safaricom customers also started selling their shares. The telco’s share price has dipped 3.6% today and is currently selling at KES 17.00 ($0.13). “For the first time, Safaricom is in a real panic; there is no traditional arrogance,” a social media user noted on X. The outage became a public relations nightmare for the operator, with over 27 million monthly active mobile data users in Kenya. The telco’s CEO, Peter Ndegwa, “sincerely apologised” for the outage in a statement on X. In 2022, Kenya’s ICT regulator, the Communications Authority (CA), issued new guidelines that mandated customer compensation (airtime equivalent) during network outages, except for disruptions from scheduled maintenance, natural disasters, or accidental damage. Considering the outage arose from accidental damage, per Safaricom, it is unlikely the affected customers will be compensated.
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Using PayPal mobile money service with MPESA in 2024
The PayPal Mobile Money Service with MPESA in 2024 enables users to transfer funds between their PayPal and M-PESA accounts. This service is provided by TransferTo in collaboration with Safaricom and PayPal. To use this service, you need a Kenyan PayPal account and an M-PESA account. Once registered, you can link both accounts for seamless money transfers. Withdrawing money from PayPal to MPESA in 2024 1. Register and link accounts: Complete the registration process to link your PayPal and M-PESA accounts. 2. Initiate withdrawal: Click on the Withdraw option. 3. Check balance: Your PayPal balance will be on display. Ensure your balance is in USD; if not, convert it on PayPal’s website. 4. Enter withdrawal amount: Specify the USD amount you want to withdraw. 5. Review details: You’ll be redirected to a page showing the amount in KES, the exchange rate, and the estimated processing time. 6. Confirm transaction: Confirm the details to complete the withdrawal. Withdrawals typically process within 2 hours to 3 days, depending on the amount. The exact timeframe will be shown before you confirm the transaction. Topping up PayPal with MPESA in 2024 1. Register and link accounts: Ensure your PayPal and M-PESA accounts are linked. 2. Initiate Top Up: Click on the Top Up option. 3. Enter Top Up amount:** Specify the amount in USD and click Calculate to see the equivalent KES amount. 4. Transfer funds via M-PESA: – Go to the M-PESA menu, select Lipa na M-PESA, then Pay Bill. – Enter Business Number 800088. – Use your phone number as the Account Number. – Enter your M-PESA PIN and click Send. 5. Confirm Top Up: The top-up amount will reflect in your PayPal account. If your PayPal balance is not in USD, you’ll need to confirm the top-up request on PayPal’s website. Top-ups are generally processed in real-time but can take up to 4 hours. Final thoughts on PayPal to M-PESA The PayPal Mobile Money Service with M-PESA in 2024 provides a convenient way to transfer funds between PayPal and M-PESA accounts. By following the above steps, users can withdraw from PayPal to M-PESA or top up their PayPal balance using M-PESA. Please note little charges may apply when using the PayPal Mobile Money Service with M-PESA.
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👨🏿🚀TechCabal Daily – Nigeria disburses $1 million to Nollywood producers
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning In 2023, Moonshot by TechCabal sparked a global conversation, tackling the continent’s most pressing challenges with innovative solutions. This documentary dives into the heart of Moonshot 2023 and gives a glimpse of what’s to come in Moonshot 2024. Watch the full documentary and see how Moonshot is changing Africa. In today’s edition Kenya withdraws Finance Bill Reduced consumer spending in Nigeria incentivise local card adoption Nigeria disburses $1 million to Nollywood producers Five WHYs startup founders must ask themselves The World Wide Web3 Job openings Economy William “The Tax Collector” Ruto Concedes Twelve hours after insisting a legitimate demonstration by Kenyans against tax hikes was “treasonous” and “hijacked by dangerous criminals,” President Ruto withdrew the 2024 Finance Bill. It was what millions of Kenyans had been asking for two weeks. While this was a triumph for the people, there’s no escaping the sour taste it leaves. It took one week of online outcry, two public demonstrations and twenty-two deaths for President Ruto and the Kenyan parliament to see reason gives it the feel of a pyrrhic victory. You’ve likely read several articles about the 2024 Finance bill and all the new taxes it proposed, but a crucial backstory is how Ruto’s handling of citizenship dissatisfaction is a massive disappointment to young Kenyans who formed the majority of his support base during his presidential campaign. Kenya’s chosen hustler: It was only two years ago when he powered to victory as Kenya’s fifth democratically elected president, portraying himself as the “hustler” underdog to Kenya’s political elite. Despite being a wealthy businessman and having served as deputy president, his message and party’s emblem—a wheelbarrow—resonated with millions of young people. “A village boy has become the president of Kenya,” he said at his September 2022 swearing-in after winning a close election. He won 50.49% of the votes to Odinga’s 48.85%. Here comes the taxman: As he settled into power, the excitement around his presidency quickly faded–the people had elected a tax man. By the end of 2022, his nickname was Zakayo, Swahili for the greedy bible tax collector Zacchaeus. He leaned into that persona. His administration levied new taxes and resurrected old ones. By July 2023, public anger had boiled over. Three days of anti-government protests turned deadly and accusations of heavy-handedness by security forces were the first signs that Ruto was not a man easily swayed by public opinion. Despite one 2023 article pointing out that “the pain of taxes dominate everyday conversations, especially with the rising cost of living,” Ruto insisted protests would not hold as he “cannot accept anarchy.” It sounds remarkably similar to his stance on June 25, 2024, almost a year to the day from the last protests. How did a man who swept to victory on the shoulders of young voters become so reluctant to listen to them? Process payments smoothly with Moniepoint And we’ll have processed almost 5,000 more by the time you’re done reading this. Your business payments can be one of them. Click here to sign up. Fintech Reduced consumer spending in Nigeria incentivise local card adoption Financial institutions have always faced a challenge. Why offer cards to your customers when it is very expensive to maintain and come with a whole baggage of disputed transactions and chargeback fraud? The answer lay in the fact that customers loved cards as they provided an avenue to access cash when required and an easy way to make payments online and offline. For Nigerian banks and fintechs that are competing in a highly saturated market, cards became an easy customer acquisition channel and international card schemes like Visa and Mastercard quickly became popular. But new realities have driven these banks and fintechs to ditch these costly international schemes for local options. The country’s inflation rate has reduced online shopping, a devaluation of local currency has made dollar bills untenable, and stringent requirements from international card issuers have contributed to this shift. Verve, the Interswitch-owned card scheme, has taken Nigeria’s card market by storm as it accounts for over half of the market. OPay and Moniepoint have issued 17 million cards from Verve and First Bank, Nigeria’s oldest bank, has issued Verve cards for over half of its customers. Last year, the national payment switch operator announced that it would operate a government-backed card scheme called Afrigo, joining the likes of India and Denmark. In the past week, Afrigo appointed new executives with experience from Mastercard and Verve as the card scheme seeks to gain a share of the card pie. There are over 90 domestic card schemes globally and they are expected to control almost 10% of the global card market by 2027 as they offer cheaper alternatives to international card schemes. In countries like Denmark and UAE, they are the most used option and they allow the government to have a bird’s-eye view of payments, something that the Nigerian government has been clamouring for. Dig deeper in Muktar Oladunmade’s article. Issue USD and Euro accounts with Fincra Create and manage USD & Euro accounts from anywhere. Fincra allows you to issue accounts to your users, partners & customers to collect payments without the stress of setting up and operating a local account. Get started today. Creator Economy FG disburses ₦1.5 billion to Nollywood producers Nigeria’s film industry, Nollywood, has been making big plays that has the government glued to the screen. In 2021, films contributed 2.3%—$660 million—to the country’s GDP with PwC predicting that the contributions could reach as much as $1 billion. Driving this growth has been immense investment in the sector from private institutions, tech investors (yes) and streaming services like Netflix and Amazon Prime, and not for just any reason. Projects like The Wedding Party, A Tribe Called Judah and Omo Ghetto grossed over $1 million each. In this article we published last year, investors revealed they’re getting as much as 3x in returns on their Nollywood projects.
Read MoreBreaking: President Ruto declines assent to 2024 Finance Bill
In what would be considered a huge win for protesting Kenyans, President William Ruto has declined to sign the controversial 2024 Finance Bill after it passed committee change at Parliament on Tuesday. The tax bill was opposed by citizens, opposition lawmakers, and civil society. Ruto returned the bill to the Parliament on Wednesday for further consideration. This means the President has effectively vetoed the bill, and the Parliament will now decide whether to amend the bill to address the President’s concerns, abandon it, or attempt to pass it again. It is a huge concession after Ruto denounced Tuesday’s protests which left eight people dead, describing the events as “treasonous.” The president claimed the protests were “hijacked by dangerous people” and called upon security organs to restore calm. OccupyParliament protesters overpower police, enter Kenyan Parliament The move could be seen as an attempt to de-escalate tension, as Kenyans plan to demonstrate on Thursday across the country—the same date Ruto was expected to sign the bill. The general assumption was that Ruto would sign the bill, considering the MPs affiliated with his ruling coalition overwhelmingly supported it. A total of 195 MPs voted in favour of the bill, and 104 MPs—mostly from the opposition—voted against it. It remains unclear when the discussion on the bill, likely to address some of the issues brought forth by Kenyans—including taxes on essential commodities such as edible oil and sanitary pads—will begin. Parliament, which met earlier on Wednesday to approve the deployment of the Kenya Defence Forces (KDF) to assist police in quelling anti-Finance Bill demonstrations, will be out of session next month. *This is a developing story.
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OPay and Moniepoint issue 17 million Verve cards as Nigerian fintechs dump Visa and Mastercard
A change in consumer behaviour and macroeconomic conditions are leading Nigerian banks to issue local cards like Verve to customers, dumping international card schemes like Visa and Mastercard. Before the COVID-19 pandemic, Nigerian fintechs stumbled on an easy customer acquisition strategy: issuing foreign debit cards. These cards, often issued for free or next to nothing, ensured fintech customers could withdraw money at ATMs, or pay at supermarkets. Giving customers debit cards increased spending, allowing fintechs to earn more transaction fees. “No regular Nigerian was going to spend [their] money from your bank if they did not have your card,” a former banker who asked not to be named told TechCabal. However, COVID-19-related restrictions on in-person shopping, a cash crunch in Nigeria in 2023, and cash shortages at bank ATMs have changed those assumptions and reduced the reliance on card payments. They have also led to the growing popularity of bank transfers. Fintech startups and banks are reevaluating their card operations in line with these new realities, and all Nigerian commercial banks, except Guaranty Trust Holding Company (GTCO), now issue Verve, a card scheme operated by Nigerian payments unicorn Interswitch. First Bank, Nigeria’s oldest bank, has issued Verve cards to over half of its card customers, said one person with knowledge of the matter. Chinese-backed fintech OPay has issued 13 million Verve cards, while Moniepoint has issued about 4 million. Since the Covid pandemic ended in 2021, Verve has controlled 54% of the Nigerian card market. Switching from the international card schemes — which charge in USD — has become popular following the naira’s devaluation, making FX-denominated bills more expensive. Visa and Mastercard fees vary and depend on the financial institution’s size and region. The pricing strategy of these international card schemes is also complicated; Mastercard’s pricing guide is a 300-page document, said one financial industry expert. Financial institutions must also meet requirements like a $2,000 monthly implementation charge, opening an offshore account, renewing their contracts annually, and collateral that runs into millions of dollars said three people with knowledge of card operations. International card schemes also charge Nigerian banks a fee for logging disputes on their resolution channels. They also prevent non-deposit banks from connecting directly to their card scheme, forcing fintechs and smaller banks to partner with commercial banks already on card schemes. Kuda, for instance, partnered with Zenith Bank, one of Nigeria’s largest banks, to launch its first debit cards. These complexities are driving the popularity of local alternatives like Verve and Afrigo despite heavy investment from Mastercard and Visa on the continent. Both companies have poured at least $700 million into the continent’s fintech industry to stay relevant. Visa and Mastercard did not respond to a request for comments. Besides the money, Verve and Afrigo make sense The decision to switch to local card schemes is also connected to customers’ use of cards for local payments. With spending power under pressure because of inflation, the ability to make global payments, which the big card schemes offer, is useful to only a small percentage of customers. “Majority of fintech customers use cards for POS transactions. They are not shopping on Amazon or online outside the country,” an employee at a Nigerian card scheme told TechCabal. Nigeria is also facing its worst cost of living crisis in three decades, reducing customer spend and causing a drop in interchange — the fees merchants pay for card processing — a problem for fintechs that need a high volume of transactions to break even with cards. Under Godwin Emefiele, the Central Bank launched Afrigo, a local card scheme, and said it could help banks save costs. Fintechs, now firmly in the scope of regulators after a six-week ban on onboarding new customers, are eager to get in the regulator’s good books and see this as an easy route, according to one person familiar with the talks. The rise of the online transfer payment method has also meant that Nigerian fintechs are making products that facilitate bank transfers. Stripe-owned Paystack has launched two pay-by-transfer products in recent months as bank transfers represented 58% of its transactions in Nigeria in 2023, up from 28% reported in 2022. Those transfers offer better margins than card payments as the multiple processors involved in card payments are eliminated. Fees on card payments are shared between several parties Besides the swing in customer behaviour, card operations require massive scale to become profitable due to logistics, manufacturing, technology, regulatory costs, and the risk of fraud. These international card schemes have considered collecting their fees in naira, several people familiar with the talks told TechCabal. But years of FX restrictions and $20 limits for global payments have made alternatives like virtual cards popular and may mean customers are indifferent about the switch. As long as the cards work at a store, restaurants, and POS stalls, it’s just another Monday.
Read MoreFive questions you should ask yourself as an early-stage startup
This article was contributed to TechCabal by Meike Neitz. What an incredible and wild rollercoaster ride to found your startup! You have an idea; you formulate a problem statement, validate the problem, and develop the solution. And the often bumpy, often exciting journey continues! When working with startups on pitching or storytelling, I often found that one central question word they don’t usually mention enough, especially in the early stages of the adventure — the “why?” In this article, I suggest five questions that could help you formulate a strong value proposition, convince investors or partners and steer your startup in the right direction. American author and productivity consultant David Allen writes: “To know and be clear about the purpose of any activity are prime directives for appropriate focus, creative development and cooperation.” Let’s get started: WHY do we do what we do? You probably know what it is that you do; you also know how you (want to) do it. But have you thought about the why? What is the overarching purpose of your business? What’s your vision for the future you want to be part of? Is your vision to bridge the digital divide? Ensure fair and balanced work conditions for care workers? Is your purpose of existence to achieve a decarbonised aviation sector? Create a circular economy in the shoe industry? Everyone who’s been to any of my workshops knows that I’m the biggest fan of Simon Sinek’s Start with a Why: I love the magical effect that takes place when indeed startup founders begin their intro or pitch with their purpose instead of telling people what it is they do. Try it for yourself, and you’ll see! Here’s an example: A startup that has developed an organic alternative to microplastics. When asked what they do, they could start with the what: “We’re a team of Max-Planck researchers and have developed a green alternative to microplastics by turning food waste in a unique fermentation process into sustainable bio-ingredients for chemistry.” That’s a sentence that’s not so easy to digest. Now let us turn this around: “We believe that the chemicals sector, being one of the biggest polluters on earth, can become green! We are excited to go to work every morning to stop the industry from harming our climate through microplastics. We’re a team of Max-Planck researchers and have developed a green alternative to microplastics by turning food waste in a unique fermentation process into sustainable bio-ingredients for chemistry.” Made a difference? You will see that starting with the why helps people understand what you do a lot better. Formulating your mission clearly will also help you onboard people who want to be part of the journey; they won’t follow you for the how—they will follow you for your why. A strong “why we do this” also guides you through setting priorities and not losing focus – one could say that the why is like a star that helps you steer the way towards the right destination. WHY now? One of the most underrated questions for any type of startup looking to succeed is, why now? In his widely popular Ted-Talk, Bill Gross argues that timing is the most widespread reason startups fail. Therefore, being able to answer the “why now?” question is crucial: What are market developments, societal and cultural trends, movements, new laws and regulations or other defining factors that make your business valuable at this moment in time? Investors would also be looking for examples. It could be anything from plastic bags being forbidden in your country to a new sustainability directive of the African Union, the rise of a certain technology in the agricultural sector, a new revolutionary cancer treatment method that has just been approved by the Health Ministry, or a new cybersecurity law that just passed parliament. Being able to implement the “why now” answer in your business model will unravel the most important component of success: relevance. WHY we? Especially when you pitch before investors, they’ll wonder why you should succeed over other competitors in the market. And please note, there’s not a single startup without competition! Even if no other companies are working on what you’re working on (which may not necessarily be regarded as something good), there is always the old way of doing things. Hence, with the “why we” question, you can verify that you know exactly what your value proposition is; you know the ingredients that make your startup better than the rest or simply the old, traditional customer route — they can be tech-based or other product-related features, it can be your first-mover advantage, your geographical reach, key partners or your pricing. Having an immediate answer to why clients in the future would want to solve their problems with you and not with any other company will go a long way. WHY us? When I’m doing pitch training, and we get to the team slide, I always ask the attending startups to think about superpowers: What makes your startup team stand out and equipped to succeed? Why should only your startup make it and not a competing team? Single out three superpowers for each person — at best, they’re complimentary. All too often, I see whole bios of co-founders in a deck or, even worse, a group picture of the entire team—that’s it. This won’t tell the person you’re talking to anything because they want to know what skill or experience matches precisely with your business! Why should they choose you? Thinking about the features of your team like you’re doing it with your product features is priceless! WHY you? Imagine you’re going to an interview for a new job. One of the most common questions from the interviewer would be: “Why did you apply for this particular company? What makes you think you’re a good fit?” Interestingly, though, many startups, whether they’re going into talks with potential partners or investors, do not take the time to prepare a precise answer to that question.
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