Advocating for better gender representation in Africa’s tech ecosystem
This article was contributed to TechCabal by June Barasa. The lack of gender diversity in tech, especially in Africa, is a glaring issue that should no longer be ignored. As a woman who has spent years navigating this male-dominated industry, I can attest to the systemic barriers and unconscious biases that persist. The numbers speak volumes: only 30% of tech roles in Africa are occupied by women, with an abysmal 14% in software engineering and 25% in computer science-related roles. There needs to be more entry points for women, i.e. apprenticeships, as this inequality is unacceptable. According to the UN, it could take a staggering 140 years for women to achieve equal representation in leadership positions. This unsatisfactory reality demands immediate action to foster inclusive workplaces and dismantle systemic barriers. Being a woman in tech comes with degrees of significance: closing the gender gap, breaking barriers, opening doors for others, changing perceptions and driving innovation. Every woman in tech knows they play an overloaded part in a male-dominated industry. Where other sectors have seen dramatic shifts in gender equity, an industry I have always dreamed of being a part of lags behind. To address this gap, we’ve seen women-led Initiatives like SheCodes and GirlsCode flourish, creating an entry-level talent pipeline into the industry. However, actual change requires a seismic shift in the industry’s culture and practices. Companies must take decisive action to nurture this talent and cultivate inclusive environments where women can truly thrive. This involves implementing concrete measures such as establishing mentorship programs, leadership development initiatives, and sponsorship opportunities specifically tailored to support women in tech. The tech industry continues to face challenges in ensuring equal opportunities, particularly in funding for women founders. Even with the progress, companies founded solely by women received only 2% of all VC investment in 2022. Despite these obstacles, I’ve witnessed the landscape evolving, especially post-COVID, with many women-led startups carving out spaces to thrive despite demonstrating resilience and innovation. For instance, the shift to remote work has allowed for more flexible schedules, enabling greater participation and leadership from women in tech. This progress highlights the potential for even more significant advancements in inclusivity moving forward. Study after study confirms that diverse and inclusive companies outperform their homogeneous counterparts, underscoring the critical importance of women in decision-making, driving innovation and growth. At Deimos, we’re committed to catalysing change, seamlessly integrating our dedication to diversity into every aspect of our operations. Through intentional hiring practices and ongoing support, we actively foster an environment where women in tech not only thrive but lead. This commitment isn’t just a box to check; it’s woven into the fabric of our culture and practices, setting a potent example for the industry. While hiring qualified women should be the norm rather than an exception, achieving meaningful and sustainable change requires more than token efforts from all of us. It demands steadfast commitment and proactive measures to create inclusive environments where women can thrive and contribute fully to the organisation’s success. Initiatives like GirlsCode helped us equip the next generation of women with the tools, mentorship, and support necessary to excel, accelerating the journey towards gender parity. Even some of our products, like Salus, which I played a pivotal role in developing, embody our ethos of inclusivity – empowering developers from all backgrounds to create, manage, and deploy incredible applications fast and securely. Early in my career, I grappled with challenges like imposter syndrome that women in tech face particularly acutely daily. This fueled my passion for empowering others and driving systemic change. While I’m encouraged by some of the progress in global gender equity, we cannot become complacent. Tech pioneers who want to create a better world must forge ahead, envisioning and actively building a future where diversity is celebrated as a competitive advantage, not an afterthought. Our dedication to embracing diversity and fostering inclusion sets the stage for a more vibrant and equitable future in African tech. Looking back, I’m struck by the profound impact of creating spaces where every voice is valued, and each talent is nurtured. Empowering women isn’t merely a moral obligation—it’s a strategic imperative for driving innovation and fueling progress. With unwavering resolve, we must take the lead in ensuring that our strides today lay the foundation for a more inclusive tomorrow, benefiting us all. — June is a skilled Technical Product Owner at Deimos with over six years of experience, having worked with industry leaders like Mastercard Foundation, American Express, and Wikipedia.
Read MoreExclusive: MoMo PSB CEO, chief commercial officer resign in surprising exit
Eli Hini, CEO of MTN’s MoMo Payment Service Bank (PSB), and Elsa Muzzolini, Chief Commercial Officer, have left the company in a surprising leadership change at the fintech. Muzzolini joined M-PESA Ethiopia, Safaricom’s mobile money business as CEO on July 15. Muzzolini informed employees of her resignation in a note on July 12. She also updated the new role on her LinkedIn profile. It is unclear if Hini, who left in June 2024, has taken another role. Hini and Muzzolini joined MoMo PSB in 2022 and led its growth strategies in Nigeria. Their exit comes at a time when MTN Nigeria ramps up investment in its fintech unit to grow its share of wallets and app adoption following losses in its core business, telecoms. Usoro Anthony Usoro, executive director of strategy and stakeholder management at MoMo PSB, has been named the substantive CEO. His appointment is subject to CBN approval, one person with direct knowledge of the matter said. MTN did not respond to a request for comments. MoMo grew mobile money wallets by 55.8% to 5.5 million in H1 2024 from 3.1 million in H1 2023. Fintech revenue grew by 11% driven by increased wallet and MoMo app adoption. Compared with Airtel mobile money scheduled to go public in 2025, its mobile money customers grew 14.9% to 39.5 million On Monday, August 5, 2024, MTN Nigeria paid ₦6.95 billion to buy off Acxani Capital Limited, the minority shareholder of MoMo PSB. MTN Nigeria took control of the fintech unit to strengthen MoMo PSB’s operations and position it for growth, according to a regulatory filing. The deal also allows MTN Nigeria to deploy more funding into the fintech unit. MoMo received an additional ₦9.4 billion in investment from MTN Nigeria as part of the deal.
Read More
JAMB 2024 latest news for candidates
The Joint Admissions and Matriculation Board (JAMB) has recently released crucial updates relevant to all 2024 candidates. This article outlines the essential points from the JAMB 2024 latest news. JAMB latest 2024 news on minimum age requirement For the 2024/2025 academic session, only candidates who are at least sixteen years old will be considered eligible for admission. This means you may go ahead to write Post UTME exams or screenings if you are currently 15 years of age. However, you will only be able to accept the admission (if granted) if you are 16 years old by the time the institution admits you. This follows the directive from the Honourable Minister of Education, Prof. Tahir Mamman, SAN, OON. The enforcement of this policy aims to curb the submission of false affidavits and doctored age adjustments. JAMB latest 2024 news on stoppage of illegal admissions JAMB has announced the end of the condonement of illegal admissions. Institutions must disclose all candidates admitted illegally before 2017 within the next month. Any admissions not reported within this period will not be recognised or condoned. Addressing daily part-time programmes JAMB has identified and condemned the practice of certain polytechnics and universities advertising unauthorised Daily Part-Time (DPT) and Top Up (TU) programmes. These programmes are not approved by the National Board for Technical Education (NBTE) or the National Universities Commission (NUC). Candidates are advised to avoid such programmes as they are not recognised and will not be regularised. Disclosure of candidates admitted outside CAPS Institutions must disclose all candidates admitted outside the Central Admissions Processing System (CAPS) from 2017 to date. Any admissions outside CAPS and not disclosed within the given time frame will not be tolerated. CAPS remains the only authorised platform for admissions, ensuring transparency and fairness. Key takeways The JAMB 2024 latest news emphasises the enforcement of strict age requirements, the cessation of illegal admissions, and the importance of adhering to CAPS for all admissions. Candidates must ensure they meet the age requirement and verify that their admissions are processed through CAPS. Avoid enrolment in unauthorised programmes that are not recognised by the appropriate educational bodies. The JAMB 2024 latest news bulletin contains vital updates for all current and prospective candidates. Candidates are encouraged to stay informed and comply with all outlined directives.
Read MoreSendsprint expands to the US with Nobel Financial Inc. acquisition
Sendsprint, a cross-border payments startup operating in the UK, Ghana, Kenya, South Africa and Nigeria, has acquired Nobel Financial Inc., a US-based remittance company, for an undisclosed amount. The acquisition will enable Sendsprint to offer money transfers and gift-sending from customers in 16 US states. “The US presents a massive opportunity for us as a company and we are excited to bring our unique blend of people-focused technology solutions and nuanced understanding of Africans in the US market to make this expansion into the US a remarkable success,” Damisi Busari, CEO and founder of Sendsprint said. As part of the acquisition, Nobel Financial Inc.’s Chief Compliance Officer, Scott McClain, will join the Sendsprint team as Chief Compliance Officer. Launched in 2022, Sendsprint operates in the competitive remittance market with established players like Western Union and MoneyGram and new entrants like LemFi and Leatherback. The company charges a $5 flat fee across all transactions. The company claims it partners with over 3,000 retailers across Africa—including big names like Shoprite, Dapper Monkey, Jumia, and Cake City—to allow users to send gift cards to recipients in Africa. Founded in 2014, Nobel Financial Inc. offers international remittance services from the USA to over 32 countries across Africa, Latin America, Asia and the Middle East. The company also allows users to send in-kind gifts such as bags of rice and other gifts to recipients in Africa. The acquisition comes at a time when remittance flows to Africa continues to grow. In 2022, remittances to the continent reached $100 billion, outpacing both Official Development Assistance (ODA) and Foreign Direct Investment (FDI). The increase in remittances from the US to Africa is fueled by rising migration and improved financial wellbeing among Africans in the diaspora.
Read MoreFounders Factory Africa rebrands to 54 Collective, a sector-agnostic VC firm
After four years of accelerating startups, Founders Factory Africa is rebranding as 54 Collective, a VC firm with a $40 million fund to invest in early-stage African ventures across various sectors. “Today, we are a VC firm with a $40m fund. Alongside that, we have $107 million that is backing our venture success platform. In total, if you add the $107 million and the $40 million fund, we are almost on the north of $150 million that we are managing in supporting startups and also making investments,” Bongani Sithole, CEO of 54 Collective, told TechCabal. Venture Capital inflows to African startups declined 31% in 2023 to $4.5 billion as foreign investors raced to the exits after the end of the zero-interest rate period. The number of deals through equity or debt decreased to 545 from a record 781 in 2022, according to a report by the London-based African Private Capital Association. Many investors have argued that local VCs with deep knowledge of the continent need to step up and fill the gap. 54 Collective joins a growing list of local investors like Partech that are stepping in to keep capital flowing to startups in Africa. While building Founders Factory Africa, Sithole realised why many tech companies fail after raising money from investors. They often take too long to set up a board; when some do, they see the board as a reporting structure rather than tapping into the advisory capabilities of the members. “We have seen too many examples that we are not going to mention. It has always been the case that they hire and spend so much money too quickly, and the obsession about products and customers takes a back seat,” Sithole said. 54 Collective takes a board seat in the early-stage companies that it invests in to help mitigate business risks and allow startups to focus on what matters. It believes startups should be “obsessed” with building the product and growing the customer base; 54 Collective also helps its portfolio companies hire talents. Founded by Roo Rogers and Alina Truhina, 54 Collective’s path to becoming a venture capital firm was defined by a mammoth $114 million capital raised from Mastercard Foundation and Johnson & Johnson Impact Ventures in 2023. Although the company had said it would use the funding to expand its model to serve founders across the African tech ecosystem, becoming a full-fledged venture capital gives it more room to expand its scope and attract more investors. As an accelerator, its revenue model was limited. Becoming a venture capital firm allows the company to expand its revenue model. 54 Collective invests up to $250,000, depending on the business’s stage. It also provides non-dilutive capital of up to $150,000. Non-dilutive capital allows startups to retain full ownership of their company. In the case of 54 Collective, it is a loan charged at 5%. “In the next five years starting from last year, we want to invest in 105 venture-bankable startups. Per year, we are doing 21 businesses. By the end of this year, we will be at 42 startups. We are currently at 29 startups,” Sithole said.
Read More
👨🏿🚀TechCabal Daily – Meta, Mobius, and more.
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Early bird ticket sales to Moonshot 2024 end tomorrow. This year, we’re bringing together even more stakeholders in Africa’s tech ecosystem across 9 content tracks including governmental regulation/policy and emerging tech. Join 85 speakers and 4,000 guests in Lagos, Nigeria, from October 9–10, 2024. Get your early-bird tickets here! In today’s edition Kuda recorded $22 million in revenue in 2022 Jumia records reduced losses Meta to pay Kenyan content creators Mobius enters liquidation The World Wide Web3 Events Fintech Kuda recorded $22 million in revenue in 2022 Kuda, the Nigerian neobank, has grown in leaps and bounds. The neobank almost tripled its revenue in 2022, recording $22 million up from $7.7million in the year before. The neobank utilised targeted advertising to get well-paying customers to its doorsteps. In 2022, it recorded 4.9 million users. That number has since grown to become 7 million. Its digital banking platform allows customers to make payments, access loans, and manage their wealth. It recorded $100 million in deposits in 2022, more than double the $41 million it recorded in 2021. Its business banking services also recorded an uptick, with customer deposits jumping from $102,000 to nearly $15 million. The business claims it offered its businesses payroll management services to over 100,000 businesses in the year in review. While the bank launched in 2019 has rapidly gained traction, the journey to profitability for digital banks is often a marathon, not a sprint. Look at Revolut and Starling, the European neobank titans, who only recently turned a profit despite launching years ago. Even Nubank, the Brazilian unicorn, took eight years to become profitable. Of course, Brazil is not Nigeria, but the point stands: building a sustainable neobank is hard. Although its 2022 losses outpace the previous year, Kuda Bank’s CFO, Frederic Bidet, insists that the company has enough cash—$33 million—to break even. Read Moniepoint’s 2024 Informal Economy Report 89% of businesses in the informal economy pay levies and market fees. The informal economy is typically described as untaxed, but is that true? Click here to find out more. E-commerce: Jumia records reduced losses Jumia CEO Francis Dufay is cutting more costs. In its earnings call yesterday, the CEO said that Jumia will now employ an asset-light model to fulfil deliveries. The company plans to establish new warehouses in Egypt and Ivory Coast which will be rented and not owned. In its latest financial results, the company reduced its losses to about $20.2 million, compared to $38 million in the previous quarter. It also reported revenue of $36.5 million for the second quarter of the year. JumiaPay, the company’s primary receiver of transactions on its e-commerce platform also brought in positives. Transactions on the platform reached $1.9 million. This growth was driven by increased adoption of JumiaPay for deliveries and the success of cashback promotions introduced in the second quarter. Jumia maintains a cash reserve of $45.1 million and total liquid assets of $92.8 million, 67% of which are dominated in USD to reduce the company’s vulnerability to currency fluctuations. The e-commerce company also recorded 2 million quarterly active users thanks in part to its search engine optimization (SEO) and customer relationship management (CRM) strategies. Despite yesterday’s announcement of cost-cutting measures and improved financial performance, Jumia’s stock price took a significant dive, closing at $4.89 (from $10.59 on Monday). We’d give it some time though. The company’s Q1 earnings call, where it reported a 71% cut in costs, led to a sharp 150% YTD jump in share pricing, a high that peaked at $14.56 in July 2024. 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. Creator Economy Meta to pay Kenyan content creators Meta has introduced two new monetisation options for Kenyan content creators: in-stream ads and ads on Facebook Reels. Creators will earn a share of the ad revenue when ads appear on their content, similar to how revenue ad sharing on X (formerly Twitter) works. Kenya has an estimated 17.8 million Facebook users, with popular content creators like Elsa Majimbo. However, many Kenyan creators still favour YouTube for content sharing due to its monetisation feature—more than 21.5 million creators create content on YouTube. Facebook’s competing monetisation feature will allow eligible creators to earn money from sharing short-form video content. In-stream ads can appear before, during, or after on-demand videos, while ads on Facebook Reels integrate into original short-form content. To qualify, creators must comply with Meta’s partner monetisation policies and content monetisation policies. The policies discourage creators from buying followers or using “engagement farming” tactics to artificially boost their metrics and qualify for ad revenue sharing. Additionally, creators must produce content in formats that are eligible for advertising, such as videos and reels that meet Meta’s quality standards and community guidelines. Creators must also be up to 18 years old, and have a minimum of 5,000 followers to monetise in-stream ads. Meta’s monetisation move is a broader strategy to compete with platforms like TikTok and YouTube. By offering monetisation options, Meta hopes to attract and retain African content creators on its platforms. Startups Mobius enters liquidation Mobius Motors, a Kenyan automaker, has entered voluntary liquidation 14 months after announcing plans to build manufacturing units in Tanzania and Uganda. Mobius entered the Kenyan car manufacturing market in 2013 selling cheap SUVs. But the problem is that Kenyans don’t buy new cars—even if they are produced locally. This is even true for how Africans generally buy cars. For example, of Kenya’s 130,000 annual car imports, only about 9,500 are brand new—even fewer Kenyans buy these new cars every year. In Nigeria, only about 15% of cars imported are new cars. Buying a foreign second-hand car is cheaper,
Read MoreAdani Energy gets approval for a $900 million power transmission line in Kenya
Kenya has approved a $907 million proposal from Adani Energy Solutions, the power distribution arm of India’s Adani Group, to build transmission lines and substations in Eastern and Western parts of the country. Adani Energy Solutions, which operates more than 21,000km of power distribution lines, will build 371km of lines and five substations under a Public Private Partnership (PPP). The deal comes as details of another agreement with Adani Airport Holdings to renovate and operate Jomo Kenyatta International Airport (JKIA) sparked public anger. “The project development or feasibility study report was completed, submitted, and approved in May 2024, for the project to progress to contract negotiations,” Treasury said in its draft Budget Policy Statement (BPS). The Adani power transmission project is part of efforts to revamp Kenya’s ageing distribution lines to reduce leakages and frequent outages. Kenya has turned to PPPs for infrastructure projects as mounting debt cut the government’s spending on new roads, power lines, railways and airports. However, questions over the opacity of the process and the inflated costs of some of the projects have persisted. For instance, after President William Ruto denied knowledge of the $1.85 JKIA concession, the Kenya Airports Authority (KAA) confirmed it in an ad on local dailies. The JKIA deal, which Kenya has not withdrawn despite public outcry, will give the Adani Group’s hospitality arm a 30-year concession of the country’s main airport. Adani Group founder Gautam Adani, one of Asia’s richest men, has been keen to expand his infrastructure empire into new markets as damaging corporate fraud allegations cool off. In 2023, Hindenburg Research claimed that the company engaged in market manipulation and “brazen” fraud. The allegations, which the company denied, caused Adani’s listed stocks to collapse after a $140 billion sell-off. The stocks have since recovered. On Monday, the company said it raised $1 billion in an equity sale with bids from US investors, the first since the scandal.
Read MoreBreaking: Unity bank requested ₦700 billion support for CBN for Providus merger
To ensure the stability of Nigeria’s financial system, the Central Bank of Nigeria (CBN) has provided a facility to support the merger between Providus and Unity Bank, a bank that recorded losses of ₦38.8 billion during the first half of 2023. While the CBN has not disclosed how much it provided in support, a source close to the situation told TechCabal that the amount was ₦700 billion. According to a letter from Unity Bank’s managing director to the CBN seen by TechCabal, on July 22, the bank requested “merger approval and financial” support. In that letter, it asked for a loan “priced at an interest rate of MPR minus 11%, subject to a minimum of 6%. Beginning in the sixth year, the new financial entity will recommence repayment in 15 equal installments until maturity.” A spokesperson for Unity Bank declined to comment. “The merger is contingent upon the financial support from the CBN,” said Hakama Sidi, the acting director corporate communications of the CBN. “ The fund will be instrumental in addressing Unity Bank’s total obligations to the Central Bank and other stakeholders. It is unequivocal to state that the CBN’s action is in accordance with the provisions of Section 42 (2) of the CBN Act, 2007.” Hakama emphasized that the arrangement was crucial for the financial health and operational stability of the post-merger organisation. Unlike its profitable peers in the financial industry like Guaranty Trust Holding Company (GTCO), and Stanbic IBTC, Unity Bank has consistently reported poor results, further exacerbated by high foreign currency exposure. CEO of Unity Bank Plc, Mrs. Tomi Somefun, blamed the bank’s poor financial position on the operating environment, which impacted the bank’s growth. “What we have is a market-driven impact which is adjustable envisaged from the positive economic outcomes of the government policies in the near term,” Somefun said in a statement the bank shared with TechCabal in September 2023. Unity Bank has been in a worrisome situation since analysts from KPMG queried its full-year report ended December 31, 2022. The lender’s total liabilities exceeded its total assets by ₦274.9 billion in 2022, and KPMG wrote a note regarding this situation in its books, highlighting it as a “growing concern.” Questions have been raised on the bank’s financial health even after it managed to record ₦1.04 billion profit in the first quarter of 2023. In that same quarter, its total liabilities continued to surpass its total assets in Q1 2023. Till date, the bank is yet to release its 2023 full year reports for full transparency. In September 2023, Somefun hinted at the bank plans to complete a recapitalization exercise long before CBN manadated banks to shore up their positions. The bank said it was focusing on retail growth before its merger. *This is a developing story *This story has been edited to show that Unity bank requested a loan facility from the Central Bank
Read MoreNigeria’s Central Bank approves merger for Unity and Providus Bank
Nigeria’s Central Bank has granted approval for a proposed merger between Unity Bank Plc and Providus Bank, confirming a report on Tuesday morning by a top Nigerian publication. Unity Bank, which reported N38 billion in losses for the first half of 2023, has been the subject of speculation after the Central Bank revoked Heritage Bank’s licence. In June 2023, TechCabal reported that the auditing firm KPMG had questioned Unity Bank’s ability to stay afloat. “As at same date, the bank’s total liabilities exceeded its total assets by ₦274.9billion and the bank did not meet the required minimum Capital Adequacy Ratio (CAR) of 10% and the minimum capital requirement of ₦25.00 billion for a national bank as required by the Central Bank of Nigeria (CBN),” KPMG said in a note. Those struggles mean the CBN will provide “financial accommodation for a merger between Unity Bank and Providus.” “The merger is contingent upon the financial support from the CBN. The fund will be instrumental in addressing Unity Bank’s total obligation to the Central Bank and other stakeholders,” the CBN said in a statement. The regulator also insisted that no Nigerian bank “currently faces a precarious situation comparable to that of Heritage Bank which was recently liquidated.”
Read MoreKenya lowers interest rate to 12.75% as inflation cools
The Central Bank of Kenya (CBK) has lowered the benchmark interest rate after inflation slowed in July. The CBK elected to lower rates by 25 basis points to 12.75%, pointing to an end of the tightening cycle. This is the first time the interest rates have dropped since April 2020; they held steady at 7% for two years, until April 2022. From then on, they sharply increased, peaking at 13% in April 2024. “Inflation is expected to remain below the midpoint of the target range in the near term, supported by a stable exchange rate, lower food prices with expected harvests, and stable fuel prices,” CBK said after the Monetary Policy Committee (MPC) meeting on Tuesday. The central bank’s decision comes as inflation eases in the East African country. Kenya’s inflation slowed to 4.3% in July from 4.6% in June, staying below the government’s target of 5%. Food inflation held steady at 5.6% in both months. In December 2023 and February 2024, the CBK raised interest rates to address high inflation and strengthen the Kenyan shilling. The Kenyan shilling has been stable over the last six months. Kenya’s economy grew by 5% in the first quarter of 2024, per an earlier report released by the CBK. Strong agriculture and services boosted growth while manufacturing and construction slowed. “Exports were 11.8 percent higher in the first half of 2024 compared to a similar period in 2023,” the CBK added. The Kenyan economy is expected to grow 5.4% in 2024, driven by services, agriculture, and exports. However, global risks, including trade and geopolitical tensions amongst the world’s leading economies like the US and Russia, could affect this.
Read More