Exclusive: OmniRetail hires ex-Jumia commercial lead Steve Dakayi to lead Francophone expansion
OmniRetail, an African B2B e-commerce platform, has hired Steve Dakayi as Country Lead for Ivory Coast as it expands into Francophone Africa. Dakayi joins OmniRetail after shutting down BetaStore, a B2B e-commerce startup he founded in 2020. The former Betastore founder has worked in e-commerce for a decade and was commercial and fulfillment lead for Jumia. He will bring his experience to some of the key markets OmniRetail is expanding to. “As a company and philosophy, once you have gotten your foot in properly, you start looking into expansions,” Amber Yadav, OmniRetail Head, Retail Division, said on a call with TechCabal. “We are looking at new geographies that make more sense in Francophone Africa like Cameroon, Senegal, Cote d Ivoire. That is the reason for our expansion.” OmniRetail’s expansion into Francophone Africa mirrors a similar move by B2B e-commerce competition,Wasoko. Francophone Africa has in recent times demonstrated the capacity for massive growth. This can be linked to a stable currency pegged to the Euro, making it immune to FX instability like its West African counterparts. High economic growth is also another factor that makes the Francophone region favourable. According to the IMF, six out of the seven fastest-growing economies in sub-Saharan Africa are francophone countries “Francophone Africa is very underestimated,” Dakayi said, stressing the region’s growth potential. “Some of the latest trends we have observed is significant growth in the middle class. This has led to increased purchasing power and new habits in terms of consumption. These are key growth drivers.” Dakayi believes that OmniRetail’s FMCG focus would thrive in Francophone countries. “We are not looking at the competition. We just want a business driven by unit economics,” he said. To achieve this progress, OmniRetail will focus on building strong partnerships and staying asset-light to drive profitability in these regions. Dakayi will report to Deepankar Rustagi, the CEO of OmniRetail, and head the Francophone expansion, which will begin with Ivory Coast. Dakayi’s appointment comes as OmniRetail intensifies its focus on profitability after being named one of the fastest-growing companies of 2024. Dakayi said the company’s vision is to become the leading e-commerce platform in Africa. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read MoreThe Angel Investor’s role in Africa’s economic transformation
This article was contributed to TechCabal by Kristin H. Wilson. The narrative surrounding Africa’s economic future often oscillates between extremes of optimism and scepticism. However, the reality on the ground tells a more nuanced story—one of resilience, ingenuity, and untapped potential. As we approach 2050, with projections of Africa’s GDP reaching $29 trillion, surpassing the current combined output of the US and Eurozone, the imperative to harness and scale indigenous innovation has never been more pressing. There’s a pervasive belief that African companies can only thrive by focusing on markets outside the continent. This view is often reinforced by examples of fintech startups that have shifted their focus to diaspora remittance and subsequently raised significant investments. However, this notion overlooks Africa’s vast untapped consumer base and the influx of foreign businesses eager to enter the continent. It’s important to consider that many African startups often operate with significantly smaller capital injections than their global counterparts yet still make remarkable strides. The imbalance in investment size and the growing focus on diaspora markets skew the overall narrative. We must, therefore, acknowledge the role of local investors who provide a wealth of experience and support, offering a more accurate picture of the opportunities and realities of running a business in Africa. It begs the question, why do more than 80% of African startups fail within their first few years? For those who have secured funding, this high failure rate can often be attributed only in small part to premature exposure to huge first cheques. This is in an ecosystem that also boasts of super brilliant African tech founders with impactful solutions. It’s telling for the future of an ecosystem when founders increasingly believe that instead of focusing on building a solid foundation for scalable growth, they ought to hack their way to venture backing instead. Our VC cap tables have the same startups, which indicates we are having the same conversations with the same founders and might be overlooking other innovative ventures that could thrive with proper foundational support. In the venture capital ecosystem, some founders are seen as “unbackable,” often due to riskiness, a perceived inability to provide a venture-scale return, and sometimes a lack of investment readiness. In our young ecosystem, perhaps we’ve been too hasty in deciding, with only about a dozen years of data, what ventures really could be delivering venture-scale returns. Perhaps local ecosystem players at the earliest stages, such as angel investors, have been too risk averse and, therefore, have not sufficiently supported founders whose proposals do not mimic Silicon Valley pathways to success. There’s often talk of a need for a third force – a new group of support systems that can identify and nurture those overlooked ventures, helping them to be backable by addressing gaps in their business models and scaling strategies. I’d wager that we’ve got enough forces; we just need to mobilise the village a little better and a little earlier. As an angel investor and a founder, I have had the opportunity to meet a steady stream of early-stage founders, many of whom are still under the radar but are tackling their communities’ challenges with fresh perspectives. These founders have the potential to generate outsized returns because they have already proven their value locally but need support to realise visions which can deliver impact and returns on a venture scale. Indeed, this is why Christian and I have launched the Innovate Africa Fund, not as a third force but to organise our activities as angel investors better and to mobilise the community of incredible investors and operators we have had the privilege of building and investing with into an early-stage fund that supports African founders in achieving product-market fit. Our approach is simple: find someone delivering a million pounds worth of impact with a fax machine and help them optimise their way towards the equivalent of a 3D printer so they can provide at least a billion pounds worth instead. We’re trying to galvanise existing players and hoping to bring new local actors into the fold who don’t necessarily revolve around the usual investment circles but are solving problems and creating innovations that deserve visibility and scaling. By improving the pipelines of companies supported and scaled through VC, we will see more startups making a difference across Africa. Beyond providing capital, we have to roll up our sleeves and get involved as angels. Many founders could benefit from this level of engagement right now. Our mandate is to actively collaborate with founders, providing value-added services such as finance, governance, public relations, talent sourcing, and strategy guidance. This hands-on approach allows founders to focus their energy on innovation and building transformative businesses that tackle complex challenges on the continent and generate value for all stakeholders, especially the community. I recall being part of a passive syndicated deal structure where a founder requested support with marketing, but the request went unattended for a month. This is less likely to happen within a dedicated angel investing framework, especially with early-stage startups that require steady attention, even less so with our fund. Angels have a superpower: the ability to provide capital and infrastructure with agility, ensuring founders are well-prepared to attract substantial investment without fear of failure. It becomes even more impactful when championed by homegrown entrepreneurs who understand the African context and share a profound vision for the Africa we want to see. To foster a more robust local investment ecosystem, we propose standardising and elevating angel investment practices, providing a framework for new and existing angel investors to engage confidently with startups directly and through hub networks. We want to be at the forefront of realising proposed tax incentives for local angel investors who support early-stage startups, encouraging more high-net-worth individuals to participate in the startup ecosystem. Africa is a hotbed of innovation, defying expectations despite limited resources. With less than 30% internet penetration and a tiny slice of global investment, the continent has produced eight unicorns and five fastest-growing economies. The
Read MoreFidelity Bank denies data breach allegations, rejects ₦555.8 million fine
Fidelity Bank, a Nigerian tier-2 bank with a market capitalisation of ₦323billion, has denied allegations of a data breach by the Nigerian Data Protection Commission (NDPC). The bank has also disputed the ₦555.8 million fine by the NDPC. At the heart of the matter is a customer’s claim that the bank had used their personal information without consent to open an account. Fidelity Bank claims an internal investigation showed no evidence of a data breach and that the account opening process was not completed due to missing documentation. “On May 2nd 2023, we responded to the NDPC that the bank did not violate any law because there was no data breach and that the account opening process was not completed,” the bank said in a statement. “On our part, we carried out due diligence by immediately blocking the account and subsequently closing the account when we did not receive the outstanding documents.” The NDPC alleges that the bank processed personal data without informed consent and relied on non-compliant third-party data processors. The regulator imposed a fine of ₦555.8 million on the bank, citing repeated warnings and a lack of satisfactory remedial plans. Fidelity Bank said the regulator had initially demanded a remedial fee of ₦250 million on December 5, 2023, but the bank had challenged this decision, insisting that they had not violated any laws. Despite ongoing negotiations, the NDPC increased the fine to ₦555.8 million on August 20, the bank claimed. The bank’s dispute with the NDPC comes amidst growing scrutiny of data privacy and protection in Nigeria. The regulator fined Whatsapp $220 million, over claims that it did not give users consent over the use of their data.
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👨🏿🚀TechCabal Daily – Osun State vs. MTN
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Heads up. We’ve roped in some interesting speakers for Moonshot 2024, and one is Kola Aina. Founder of Ventures Platform, Kola Aina’s goal is to replicate Silicon Valley’s success by providing capital, mentorship, and a supportive ecosystem for African startups. Despite numerous challenges, Aina’s determination and strategic investments have fueled remarkable growth and success for startups across Africa. He will join other innovators and industry leaders who are developing groundbreaking solutions to Africa’s most pressing challenges. Save your seat at Moonshot! Get tickets here. Access Bank closes in on NBK acquisition Osun State v MTN IHS may sell Rwandan and Zambian arms NDPC fines Fidelity for data infraction The World Wide Web3 Events Banking Access Bank closes in on NBK acquisition Image source: Access Bank Access Bank, one of Nigeria’s tier-1 commercial banks, is close to acquiring National Bank of Kenya (NBK) in a deal believed to be worth $100 million, pending approvals from regulators. The deal, which has been in the works since March 2024, will see Access Bank inherit NBK’s branch networks—and its financial problems. NBK, with only $79.77 million in assets, is nowhere close to being one of Kenya’s top ten commercial banks. It grapples with a high 25.3% in non-performing loans, its pre-tax profits dropped last year, and the bank has been struggling to meet capital requirements set by Kenya’s central bank. Its owners, KCB Group, have spent over $60 million since 2019 to keep the bank afloat. Yet, Access Bank still sees NBK as a promising prospect. In March, it signed a binding agreement with KCB Group to acquire 100% shares in NBK. That deal was expected to be completed after six or seven months. But what makes NBK an interesting prospect to Access Bank is not its financials. NBK has a wide branch network across Kenya, with 85 branches spread across urban and peri-urban cities. In contrast, Access Bank, which entered Kenya in 2020 through another acquisition, has only 22. Once the deal goes through, Access Bank will have 107 bank branches. With that spread, Access Bank will be able to build its presence in a market it has desperately pursued after the Sidian Bank deal fell through. Read Moniepoint’s 2024 Informal Economy Report Did you know that 57.7% of the business owners in Nigeria’s informal economy are under 34 years old? Click here to find out more about the demographics of Nigeria’s informal economy. Telcos Osun State v MTN GIF source: Tenor In a dispute over a broadband project gone awry, the Osun state government in Nigeria is demanding that MTN pay ₦945 million ($599,000) in right-of-way (RoW) fees. The state government says MTN laid cables without proper approvals, while MTN says it paid fees to a licenced partner, O’odua Infraco. The controversy stems from a 2022 agreement in which MTN and O’odua Infraco partnered to lay 270,000 metres of fibre-optic cables to provide internet services in the state. Osun State billed MTN Nigeria ₦3,500 ($2.22) for this project. But MTN allegedly blindsided the State and paid only ₦650 ($0.41) per linear metre to the government via O’odua. What complicates this messy affair is the fact that the state now says it did not receive any money from O’odua, a company it also claims is not authorised to collect fees on its behalf. More so, the ₦3,500/linear metre fee is a far cry from the standard ₦145 ($0.09) per linear metre fee recommended by the Federal Government in 2020. Now, the State, believing telcos must bear the full cost of their infrastructure, wants its monies paid in full. It is also fining MTN an additional ₦100 million ($63,000) over alleged tax negligence. With the Osun state situation in disarray, the big question is where should the government draw the line in the role it plays in Nigeria’s broadband penetration efforts? Frank Eleanya dives deeper here. Collect payments anytime anywhere with Fincra Are you dealing with the complexities of collecting payments from your customers? Fincra’s payment gateway makes it easy to accept payments via cards, bank transfers, virtual accounts and mobile money. What’s more? You get to save money on fees when you use Fincra. Get started now. Companies IHS considering sale of Rwanda and Zambia businesses Image source: IHS Towers Image IHS has been putting out many fires recently. The telecom operator is considering selling its businesses in Rwanda and Zambia to pay back some of its debt. According to its H1 2024 financials, IHS’s short-term debts increased from $158,000 to $454,000. However, its overall debts were reduced by a small margin, from $3.4 million to about $3 million. The company drew $60 million from its $600 Bullet Term Loan Facility in April 2024 for general corporate purposes and to pay off its existing debts—IHS Holding (2021) Bridge Facility and the U.S. dollar tranche of Nigeria (2019) Term Loan. So far, the company has drawn $430 million from its Bullet Term Loan Facility. Although IHS profits took some beating in Nigeria, its biggest market due to currency devaluation, the group earned about $108,218 across sub-Saharan markets which includes Zambia, and Rwanda. Conversations about the sale are in their early stages, according to people familiar with the matter. The news comes after we reported the layoff of about 100 of its senior employees to shelve costs and extend its runway. The company which has a cash balance of about $445,713 will raise between $500 million and $1 billion in the coming months. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Data Privacy NDPC fines Fidelity Bank for data infraction Image source: Fidelity Bank The devil works hard, but Nigeria’s Data Protection Commission (NDPC) works harder. One month after the regulator fined Meta for data privacy, it has
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Fidelity Bank fined ₦555.8 million for data infraction
Fidelity Bank, a Nigerian tier-2 bank with a market capitalisation of ₦323 billion, has been fined ₦555.8 million by the country’s data protection regulator. The fine is 0.1% of the bank’s 2023 revenue and must be paid in 14 days, said Nigeria’s Data Protection Commission (NDPC). The investigation into Fidelity Bank began in April 2023. “The Commission reviewed the data processing platforms of Fidelity Bank and found that in certain critical cases, the Bank processes personal data without informed consent of data subjects,” the NDPC said on Wednesday. It also claimed Fidelity relied on non-compliant third-party data processors to process customers’ data in violation of the 2023 Nigeria Data Protection Act. Fidelity Bank did not immediately respond to a request for comments. The regulator said it initially asked the bank to pay a remedial fee in December 2023 and claimed the bank failed to honour repeated warnings. “The commission gave several opportunities for full accountability for over one year – taking into account the need to encourage compliance as a culture. However, Fidelity Bank did not provide requisite, satisfactory remedial plan,” it said. In July 2024, Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) and the NDPC fined Whatsapp $200 million after a three-year investigation into the company’s privacy policy. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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Exclusive: Nigeria’s Access Bank nears completion of National Bank of Kenya acquisition
Access Bank, a Nigerian commercial bank with a market capitalization of ₦1.01 Trillion, is poised to acquire the National Bank of Kenya from the KCB Group. The deal will be concluded after approval from the Central Bank of Kenya (CBK) and the Competitions Authority of Kenya (CAK). While the value of the transaction has not been disclosed, KCB Group announced in March it agreed to sell National Bank for 1.25x of the bank’s book value. Given NBK’s book value of $79.77 million in 2023, the deal could be priced around $100 million. “I am pleased to inform you that the process is nearing completion and is only awaiting the required regulatory approvals, for which we believe we should be concluding very soon. In the coming months we shall communicate the next steps,” Joseph Kinyua, KCB Group chairman, said during the company’s H1 2024 earnings call on Wednesday. KCB Group acquired NBK in 2019 and has spent over $60 million to ensure it meets CBK’s minimum capital requirements. The Nigerian lender is expected to inject more capital into NBK. Access Bank did not immediately respond to a request for comments. “We are on the tail end of the process. I want to acknowledge and make a special mention of the contribution of the National Bank team, it’s not the easiest of a performance environment as it is in the market and when you have the uncertainty of a transfer and you continue to perform, you truly deserve a special mention,” said Paul Russo, KCB Group chief executive. The acquisition will expand Access Bank’s footprint in Kenya and could be concluded later this year. The deal is Access Bank’s second acquisition in Kenya under five years after the lender acquired Transnational Bank in 2020. NBK has a nationwide network and will increase the bank’s branches from the current 22. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read MoreInside Osun state government’s complex ₦945 million right-of-way dispute with MTN
On Friday, a dispute over right-of-way fees between MTN Nigeria and the Osun state government hogged the headlines. The Osun State government claimed MTN owes ₦945 million in right-of-way fees—payment for laying high-speed internet cables. That demand was based on a calculation of ₦3,500 per linear meter (the maximum fee applicable) of fiber-optic cable laid. The government also imposed a ₦100 million fine. MTN’s letter to Osun State, published by several publications, provides a glimpse into what appeared to be a shakedown. Several people with direct knowledge of the matter say the dispute, which the telecoms regulator is now mediating, is more nuanced. Five people with direct knowledge of the matter say the government’s demands are rooted in the belief that MTN Nigeria and O’odua Infraco Resources Limited acted in bad faith in a complex web of partnerships that began in 2022. A September 2022 agreement between O’odua Infraco Resources Limited and MTN is at the heart of the dispute. The agreement gave MTN an “indefeasible right of use” to lease O’odua’s fibre ducts—protective housing that prevents vandalism and wear and tear—to lay fibre optic cables. As part of that agreement, MTN paid O’odua right-of-way fees. The government contends that O’odua was not authorised to collect fees on its behalf. It also argues that it was not a party to the agreement between MTN and O’odua and is not bound by it. “In addition to clause 6.13, the Service Provider (O’odua) shall also provide a no-objection letter from the Federal Ministry of Works and Housing and the relevant state authorities stating it is not opposed to its entry into this agreement with MTN,” read an excerpt from an advance copy of a press statement citing portions of the agreement seen by TechCabal. Three people familiar with the government’s position said the fees paid by MTN represent ₦650 per linear meter, less than half the minimum ₦1,300 Osun state charges. They also claimed the government never received those payments. “The agreement purportedly executed between O’odua Infraco and MTN on 22nd September 2022 far predated the existence of any purported contract for Right of Way between the Osun State government and O’odua Infraco, which was purportedly executed on 6th March 2023,” said an advance copy of an Osun state government press statement seen by TechCabal. MTN did not respond to a request for comments. O’odua Infraco did not immediately respond to a request for comments. Osun state and right-of-way fees The press release references Osun State’s decision to cancel right-of-way fees in March 2023. At least two government officials who asked not to be named as they were not authorised to speak on the matter claimed the 2023 cancellation was based on promises by telcos and infrastructure providers to provide internet to underserved areas. They claim infrastructure providers reneged on the agreement. Right-of-way fees, an important source of revenue for struggling states, are cited as one reason telcos have struggled to provide high-speed internet nationwide. While the Federal Government recommended that states charge ₦145 per linear meter, that recommendation has been difficult to enforce. Some governments believe telcos should consider the fees as a necessary cost of doing business, arguing that many telcos will not lay fibre-optic cables outside of commercial areas. MTN, which has suffered from the naira devaluation and record inflation in Nigeria, will be reluctant to pay these steep fees. Yet the government’s position seems to be informed by the idea that there’s no point in canceling right-of-way fees if telcos will simply pay them to third parties anyway.
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Exclusive: Twiga Foods lays off 59 employees as it restructures business for “sustainability”
Twiga Foods, the Kenyan e-commerce startup embroiled in legal battles with a cloud provider in early 2024, will lay off 59 employees as it restructures its business. This is the second round of job cuts at Twiga, which laid off 283 people in August 2023. “These changes are crucial as Twiga accelerates towards profitability and continues its mission of revolutionising food distribution in Africa through innovative digital solutions,” the company said in a statement confirming the layoffs. Twiga Foods will also open 25 new roles in the growth and innovation departments. In a dramatic year for Twiga, cloud provider Incentro dragged it to court in 2024 for failing to pay a $261,000 cloud bill. It provided a glimpse into the startup’s struggles to pay vendors and staff, exposing cash flow issues. In March, founder and CEO Peter Njonjo left the business after it secured new funding, prompting speculation that he may have been pushed out. Njonjo was replaced by Charles Ballard, an ex-Jumia executive, in May 2024. “These adjustments will allow us to improve our service offering and lay a stronger foundation for sustainable growth in the years to come,” said Ballard. In November 2023, Twiga raised $35 million in convertible bonds from new and existing investors like Creadev and Juven. Njonjo invested $1 million of his personal funds in that round. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read MoreWith $15, you can rent a Starlink kit monthly in Kenya
If you live in Kenya and can’t afford to buy the Starlink internet kit, you can now rent the hardware for $15.15 (KES1,950) monthly. The company unveiled the rental options on Wednesday. Customers interested in renting the Starlink kit, which costs $350 (KES 45,000), will pay a one-time activation fee of $21. They can choose between a 50GB plan for $10 (KES 1,300) or an unlimited package for $50.50 (KES 6,500). Both plans offer speeds of up to 200 Mbps. In June 2024, Starlink introduced a monthly budget package of $10 (KES 1,300), a move that forced local internet service providers (ISPs) to introduce promotions to retain customers. Since its launch in Kenya in July 2023, the number of Starlink users has grown by more than tenfold, which shows favourable adoption of Elon Musk-owned satellite internet service. Starlink competes with existing players like Skynet and NTvsat. Three months before it launched in Kenya, the country had only 405 satellite internet subscribers. This number jumped to 1,354 within two months of Starlink’s arrival and further increased to over 4,808 by March 2024, according to data from Kenya’s Communications Authority (CA). Starlink’s presence in Kenya has also compelled existing internet service providers (ISPs) to refine their offerings to retain or attract more customers. Safaricom, which had over 522,000 fixed data subscriptions as of March 2024, started offering 4G and 5G routers to appeal to customers outside its fibre network coverage. The company announced plans for a satellite service in 2023 but has yet to launch it. Jamii Telecoms, another provider with a fibre product and the second-largest market share in fixed data subscriptions, has been expanding its service to the outskirts of Nairobi to compete more aggressively in the home internet market. Starlink’s popularity has been accelerated by its ability to serve customers dissatisfied with traditional ISPs’ limited offerings, particularly in rural areas. The company’s promise of providing broadband services beyond the reach of these established providers has made it a popular choice.
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SASSA payment details & dates for September 2024
The South African Social Security Agency (SASSA) has released the payment schedule for the 2024/2025 financial year. For September 2024, beneficiaries of various SASSA grants will receive their payments on specific dates, according to the type of grant they qualify for. This article provides a breakdown of these SASSA September 2024 payment dates and what beneficiaries need to know. SASSA payment dates for older persons In September 2024, older persons will receive their grants on the 2nd of September 2024. This date is crucial for those relying on their grants to meet their monthly expenses. Older persons should ensure they prepare accordingly, as this payment will allow them to cover their essential needs without delay. SASSA disability grants payment date SASSA has scheduled the payment of disability grants for the 3rd of September 2024. Beneficiaries should mark this date on their calendars and plan their finances around it. Receiving the grant on this date will enable beneficiaries to manage their budgets effectively, ensuring they have the necessary funds for healthcare and other critical expenses. SASSA September payment date for children’s grants The payment of children’s grants for September 2024 will occur on the 4th of September 2024. Parents and guardians must take note of this date to ensure they can meet their children’s needs. Timely payment will allow them to purchase necessities, including food, clothing, and school supplies. Final thoughts on SASSA payment details & dates for September 2024 SASSA has clearly outlined the payment dates for September 2024, ensuring that beneficiaries can access their funds when needed. Older persons will receive their payments on the 2nd of September, those receiving disability grants on the 3rd, and children’s grants on the 4th. By knowing these dates, beneficiaries can plan accordingly, ensuring financial stability throughout the month. Ensure you check the official SASSA channels for any updates or changes to the payment schedule.
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