MarketForce shuts down RejaReja, its B2B ecommerce business, switches focus to social commerce
MarketForce, the Y Combinator-backed Kenyan startup founded in 2018, will shut down RejaReja, a B2B e-commerce platform that was a huge part of its business. The company’s co-founder, Tesh Mbaabu, shared the development in a blogpost on Wednesday afternoon. The startup founder also shared the company’s new move: Chpter, a social commerce startup that provides an AI-powered conversational platform that automates conversations on WhatsApp and Instagram for business owners. Mbaabu cited the razor-thin margins of B2B e-commerce businesses and profitability struggles on a unit level as contributing factors in the decision to close the business vertical. On a phone call with TechCabal, Mbaabu said RejaReja’s “business model was challenging and capital-intensive.” “Unfortunately, that is our closing chapter. After immense efforts to make our business model sustainable, including downsizing the business to extend the runway for as long as possible, we have concluded that it is no longer feasible to keep RejaReja operational. “The segment is also highly price elastic, which means the price wars are consistent. That’s always a race to the bottom.” While MarketForce began as a sales automation software, it pivoted to B2B e-commerce with RejaReja, a service that allowed neighbourhood merchants and small-time retailers to stock up their shops with goods from FMCGs like Unilever and Nestle. The service also allowed customers to access digital financing; MarketForce partnered with Pezesha, a business credit provider, for this service. Many players in the B2B e-commerce space typically offer loans and apps that help customers manage their inventory. There was considerable excitement from investors around B2B e-commerce at first. That sentiment and considerable traction in its early days helped MarketForce. “Based on early traction for RejaReja, the company raised $2 million and was accepted into Y Combinator in the summer of 2020.” More milestones were to follow, including supporting over 1 million merchants and raising $40 million in 2022 at a valuation of $100 million. Today, the segment’s initial excitement has waned, and the investors who happily signed millions of dollars in cheques have slowed down. In December 2023, Wasoko and MaxAB, two heavily funded B2B e-commerce players, merged in the hopes of creating a category king. The Nigerian startup Alerzo has cut employees thrice in as many years as it hopes for profitability. MarketForce also faced difficulty meeting its financial obligations to its credit partner, Pezesha. However, the two companies have since resolved the matter internally, avoiding a liquidation suit filed by Pezesha.
Read MoreExclusive: Kenya’s Equity Bank hit by $2.1 million debit card fraud, 19 suspects arrested
Equity Bank, Kenya’s biggest bank, was the target of a debit card fraud in which the perpetrators stole $2.1 million. According to a letter sent to the Directorate of Criminal Investigation, the stolen funds were moved to over 500 bank and mobile money accounts. The bank has restricted all accounts that received those funds. A fraud detective at the DCI confirmed the incident to TechCabal and claimed 19 persons were arrested in connection with the fraud. Equity Bank declined to comment. Three sources with knowledge of the investigation said the perpetrators executed a “card-not-present” scam to steal money from victims. While this type of fraud typically involves using stolen card details to shop online, fraudsters often create websites and route payments to those websites to access funds in those cards. Those funds are then moved to other bank accounts. “Preliminary investigations revealed that between 09/04/2024 and 15/04/2024, KES 179.6 million ($1.3 million) was paid out from the GL fraudulently to the 551 Equity Bank accounts,” a letter signed by Gerald Munyiri, Equity’s general manager security said. “KES 63 million ($478,360) was sent to Safaricom and KES 39 million ($296,015) to eleven commercial banks. We are in touch with Safaricom and the respective banks to assist in tracing the movement and safeguarding the funds,” part of the same letter said. One theory is that the transactions were done in batches because Kenyan banks require customers to disclose information for all transactions over $10,000. Mobile wallets also have a limit of $1,900 per transaction, with a maximum of $3,800 daily. Fraud is a growing concern in Kenya’s financial services sector. According to TransUnion Africa, a credit reporting agency, Kenyan banks lose about $130 million to cybercriminals yearly, mostly through loan stacking and identity theft. Kenya’s Financial Reporting Centre (FRC), an agency that tracks the flow of money in financial institutions– flagged more than $600 million linked to card fraud, corruption and terrorism financing in the three years to July 2023. Most banking fraud cases in Kenya go unreported, as most financial institutions choose to resolve them quietly, albeit with the knowledge of the Central Bank of Kenya (CBK), the sector regulator. In March 2024, Habil Olaka, the outgoing chief executive of the Kenya Bankers Association (KBA)told Business Daily that local banks are increasing spending on technology to help fight growing fraud.
Read MoreLocal manufacturing of drones is on the rise in Africa
This article was contributed to TechCabal by Bonface Orucho via bird story agency. Rising demand for unmanned aerial vehicles used in various commercial applications is fueling the growth of the local drone manufacturing industry as startups and governments ramp up production within the continent. Following South Africa’s successful test flight of the Milkor 380, an unmanned aerial vehicle (UAV) capable of carrying up to 1300 kilograms among other unique capabilities, the landscape is witnessing a proliferation of local manufacturing hubs, with recent developments emerging in Nigeria and Morocco. In February, a drone manufacturing facility was unveiled by TerraHaptix, a Nigerian technology and robotics startup. The 1,400 square meter facility in Abuja was built to produce “autonomous drones for the world’s core industries such as defense, energy, logistics, agriculture, and mining,” according to founders Maxwell Maduka and Nathan Nwachuku. The launch of TerraHaptix’s flagship product, the Archer in March 2024 underscored Africa’s capabilities in developing cutting-edge UAV technology for diverse applications. The company produces all the drone parts themselves, according to tech news platform TechCabal, “including the airframe, flight computers, firmware, powertrain, and the flight OS.” Projections are for up to 10,000 units a year. Last week, Bluebird, a subsidiary of Israel Aerospace Industries (IAI), conducted the first field test of its new SpyX suicide drone in Morocco. The test flight for this rare military drone is part of a deal to manufacture advanced suicide drones in the North African country. Besides military applications, however, the growth in drone manufacturing activities in Africa is fuelled by rising local demand for aerial vehicles across several sectors. The global drone market has grown from $14 billion to over $43 billion in 2024, meaning the industry has been growing by more than 20% annually, according to Drone Industry Insights. In South Africa, Africa’s largest drone market, the value of the small drones sector alone is estimated to reach $134.5 million by 2025, according to IndustryARC, a research platform. Demand for drones is coming from the conservation, agriculture, and healthcare sectors, among others. In Malawi, for instance, the government adopted drones to protect wildlife across six nature reserves – Nyika, Kasungu, Nkhotakota, Majete Vwaza, Liwonde and the Elephant Wildlife Reserve. The decision to use UAVs in conservation was made in September 2023. “It is envisaged that the use of drones in wildlife conservation will bring new dimensions in both protection and research,” Joseph Nkosi, Malawi’s Ministry of Tourism spokesperson, told bird story agency in a 2023 interview. China and Israel have been competing to supply drones to different countries on the continent. According to a January report by Le Monde, Turkey is supplying African countries with its Aksungur and Bayraktar TB2 combat unmanned aircraft. The report explains that Turkish UAV manufacturers have sold over 40 UAVs to 10 countries. “Niger, Burkina Faso, and Mali acquired several Bayraktar TB2 models in the space of 10 months. In 2022, Senegal announced that it was also in the fray for one. The Chadian army has acquired four Ankara attack drones from another Turkish manufacturer,” Le Monde details. Some of the largest global manufacturers of UAVs are now showing increased interest in establishing local manufacturing facilities within the continent. In November 2023, Ondas Holdings, the parent company of drone service providers Airobotics and American Robotics, signed a memorandum of understanding (MOU) with Moroccan technology company Maghrebnet. The partnership will see Maghrebnet take charge of manufacturing and sales of Ondas’ automated Optimus Drone-in-a-Box systems in Morocco and Senegal. More recently, in February 2024, Rwandan drone company Charis UAS secured a significant investment from global drone solutions provider XM2 Earth. The investment aims to fuel XM2 Earth’s expansion of drone manufacturing across the continent. Charis UAS, known for launching Rwanda’s first domestically-made drone in 2020, stands poised to play a pivotal role in this expansion. More countries are showing interest in improving local manufacturing capacity, including Botswana, where the Botswana International University of Science and Technology (BIUST) and the Mileage Group, a technology and investment firm, unveiled a drone assembly and testing centre in Palapye, some 272 kilometres northeast of Gaborone. The centre was launched in March.
Read MorePost-CEO exit, Cellulant appoints new leaders, shifts focus to profitability
Cellulant, the pan-African payments startup valued at $133 million in 2022, has named new executives three months after the CEO and four other senior managers left the company. While Peter O’Toole, the company’s former CFO, remains acting CEO, Andy O’Sullivan, who co-founded Innovate Payments, is Cellulant’s new CTO. He replaces George Murage, who has now moved to Pesalink. Gbenga Haastrup is the new executive consultant for governance, risk, and compliance. Haastrup held executive leadership positions at UMBA, Interswitch, UBA and Standard Chartered Bank. Other appointments include Irene Koki as head of internal audit, Ochebhoya Ekpete (formerly of Interswitch and Stripe) as vice president of group finance, and Susan Fouche as the Group chief people officer. After consolidating some roles and creating new ones, the company disclosed that the new hires would be crucial for its business, which serves 13 African markets. O’Toole says Cellulant’s “main goal is to become a highly sustainable and profitable payments company, known for its operational excellence across our three core areas: checkout, payout, and banking solutions.” In 2024, Cellulant plans to prioritise these three business areas to align with its “ongoing investment in product development, service delivery, streamlining operations, and managing risk,” according to a statement seen by TechCabal. These leadership changes follow a difficult year for Cellulant in 2023, which saw the company go through three rounds of redundancies. “We made strategic operational adjustments to improve efficiency and support our ambitious growth plans,” Cellulant told TechCabal in January 2024. Cellulant had appointed Grover to lead a $100 million Series D funding round, which ultimately didn’t materialise. Despite raising $54.4 million over three rounds, Cellulant says it is still talking to investors but does not plan to raise additional funds in 2024.
Read More
How to reverse Mpesa transactions 2024 easily
Mpesa transactions are a convenient way to send and receive money in Kenya. But you may sometimes accidentally send money to the wrong number. Thankfully, Mpesa offers a reversal option to help you recover your funds. Here’s a guide on how to reverse Mpesa transactions, including the added Zuri option: Are Mpesa reversals always possible? It’s important to note that Mpesa reversals aren’t always guaranteed. The success rate depends on several factors, including: Transaction Type: Reversal is generally easier for person-to-person transactions. Reversing payments to pay bills or till numbers might require contacting Safaricom’s customer care. Time Since Transaction: The sooner you initiate the reversal process, the higher the chances of success. How to reverse mistaken Mpesa transactions There are now five main ways to initiate a reversal on Mpesa: 1. Using SMS This is the most common method for reversing transactions sent to the wrong number. Here’s what to do: Forward the Mpesa confirmation message: The easiest way is to simply forward the confirmation SMS you received after sending the money to the number 456. This message contains all the transaction details needed for reversal. Response from Mpesa: You’ll receive a reply from “Reversal” confirming that the request has been initiated and you’ll be updated within 2 hours. 2. Using the Mpesa App If you prefer using the app, follow these steps: Open the Mpesa App: Log in to your Mpesa app and navigate to the “Transactions” section. Locate the Transaction: Find the transaction you want to reverse. Look for Reversal Option: There should be a “Reverse Transaction” icon or option available. Tap on it. Provide Reason for Reversal: Briefly explain why you want to reverse the transaction (e.g., wrong number, wrong amount). Submit Request: Confirm the reversal request. You’ll receive a notification similar to the SMS method. 3. Using the mySafaricom App Similar to the Mpesa App, you can initiate a reversal through the mySafaricom App if the transaction was done using that platform. 4. Chatting with Zuri This is a new and convenient option! You can now request a reversal by chatting with Zuri, Safaricom’s chatbot, on WhatsAapp. Here’s how: Save Zuri’s number: 0722000100 Start a conversation: Open WhatsApp and initiate a chat with Zuri by typing “Hello”. Follow the prompts: Zuri will guide you through the process. You’ll need to confirm your phone number, Mpesa PIN, and the transaction details. 5. Contacting Safaricom Customer Care In case the above methods don’t work or for transactions involving pay bills or till numbers, you can always contact Safaricom’s customer care for assistance. Major tips to successfully reverse Mpesa transactions The faster you initiate the reversal process, the better the chances of recovering your funds. If contacting customer care becomes necessary, have the recipient’s number, transaction code, and amount sent readily available. Also, processing a reversal can take up to 72 hours. Final thoughts on how to reverse Mpesa and the Hakikisha preventative measure Before sending any Mpesa transaction, consider using the Hakikisha service. This free feature allows you to confirm the recipient’s name and/or number before completing the transaction, significantly reducing the chances of sending money to the wrong person.
Read More
👨🏿🚀TechCabal Daily – Ghana to tax content creators
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’re planning to join X (Twitter) anytime soon, you’ll have to pay a “small fee”. In a bid to banish bots, Twitter’s new sheriff, Elon Musk, is proposing a paywall for fresh faces. Seems paying a buck is the new “not a robot” checkbox under Musk’s reign. New Zealand and the Philippines got a sneak peek of this tollbooth, with new users coughing up $1 to join the party. At this time, Musk and his team are yet to announce when the feature will roll out globally to the platform which is estimated to have about 48 million bot accounts. In today’s edition Nigeria asks Kenya to extradite Binance executives Ghana wants to tax its content creators Tingo lays off staff after salary delays Vodacom Tanzania acquires Smile Tanzania for $27.4 million Starlink to disconnect roaming users in Africa The World Wide Web3 Opportunities Crypto Nigeria asks Kenya to extradite escaped Binance executive Extradition cases can be lengthy and complex, as evidenced by the years-long wait for Kenyan authorities to decide on the fate of former minister Chris Okemo and ex-Kenya Power CEO Samuel Gichuru for money laundering and fraud charges filed since 2011. Now, the Binance versus Nigeria case just might be raising similar concerns. What’s new? Per the Daily Post, Nigerian authorities have asked Kenya to arrest and extradite Nadeem Anjarwalla, a Binance executive who managed to evade detention on March 25 after being accused of tax evasion. The tensions escalated when Nigeria restricted access to Binance’s website, prompting two of its top executives, Tigran Gambaryan and Nadeem Anjarwalla, to journey to the country in an attempt to address the dispute. However, upon their arrival, Nigerian authorities seized their travel documents, and detained them on February 26 without formal criminal charges. This move marked the beginning of a tumultuous series of events that would ultimately see Anjarwalla escaping the country to Kenya, leaving Gambaryan behind to face money laundering charges. Now, Anjarwalla’s escape, facilitated by a smuggled passport, has further complicated the situation. A smart move? Kenya’s extradition laws mandate that for Anjarwalla to be arrested, a Nigerian court must issue an arrest warrant, which would then need to be processed through Nairobi’s legal channels. Furthermore, the involvement of Interpol adds another layer of complexity to the situation, with the process potentially dragging on for months, if not years. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Regulations Ghanaian foreign income earners to begin paying taxes Last year, in a move that caused public uproar, the Kenyan government announced plans to tax content creators. The East African country’s new Finance Bill came into force in June 2023 and now levies a 1.5% withholding tax on all income made by content creators and digital workers in the country. Now, Ghana is following in Kenya’s footsteps. This week, the Ghana Revenue Agency (GRA) revealed plans to tax Ghanaians who earn foreign income. Ghana’s new tax will also target content creators and influencers in Ghana who make money on global platforms like YouTube, X and TikTok, as well as remote workers using platforms like Fiverr and Upwork. This includes Ghanaians who earn foreign income and live in Ghana for at least 183 days a year. Why is the Ghana Revenue Agency doing this? In February, the ministry of finance released a press statement to suspend the implementation of the Value Added Tax on electricity. It got suspended because of major outbursts from Ghanaians but this suspension on the electricity tax has left a revenue gap of approximately GHC 1.8 billion ($134 million). The money has to come from somewhere, Ghana says, and to close this revenue gap, the government has decided to tax Ghanaians who earn foreign income. Commissioner General, Julie Essiam stated that this initiative represents both an expansion and enforcement of the current tax system. She affirmed the commencement of the implementation process, mentioning that the GRA is actively preparing and composing letters to be dispatched to individual account holders, which they could potentially receive prior to May 2, 2024. There is a perk to being a good citizen. The Commissioner General also revealed that if people voluntarily report how much money they have in their accounts within three months, they won’t have to pay extra interest on the money, “That is the voluntary disclosure aspect of this measure,” she stated. This new tax will include Ghanaians who earn foreign income and live in Ghana for at least 183 days a year. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Layoffs Tingo furloughs at least 50 staff after salary delays and layoffs In June 2023, Tingo Group, a Nigerian agri-fintech company, found itself in the crosshairs of Hindenburg Research, a US-based investment research firm. Hindenburg accused Tingo of being “an exceptionally obvious scam,” calling into question its entire business model— fintech, agritech, and telecoms. Despite these allegations, Tingo declared sales of $977 million for H1 2023. In December 2023, the US Securities and Exchange Commission (SEC) charged Tingo’s founder, Dozy Mmobuosi, with securities fraud, after the company reported having cash of $461.7 million for the fiscal year 2022, but its bank accounts held less than $50. Despite facing these charges, Mmobuosi reportedly promised employees in January 2024 that outstanding salaries would be paid within a month. These promises came alongside reports that some employees allegedly received unexplained pay raises of up to 400%. However, by March 2024, Tingo furloughed nearly all its full-time staff—at least 50 employees. This followed layoffs of 40 contract workers in February 2024, who
Read MoreUBA to raise fresh capital through sale of 10.8 billion ordinary shares
United Bank for Africa (UBA), a Nigerian bank valued at over ₦1 trillion, plans to raise fresh capital by selling 10.8 billion new ordinary shares. The bank will prioritise existing investors in the planned share sale. UBA assigned a nominal value of ₦0.50 kobo per share, but the actual selling price will be disclosed at an annual general meeting scheduled for May 24, 2024. Unlike First Bank and Access, UBA has not disclosed how much it will raise, although banks of its size are now expected to have a minimum paid-up capital of N500 billion. The bank will also raise additional capital by selling preference shares, convertible and/or non-convertible notes, bonds, or other instruments. “UBA closed yesterday at N25 per share. But it will have to sell at a discount to the market to get investors to buy,” said a stock exchange market analyst. In a corporate disclosure on Monday, UBA noted that its total assets grew by 5% year-to-date to N974.47 billion in March 2024 compared to N931.95 billion in December 2023. This was responsible for a 121% growth in cash and cash equivalents during the period under review. The last recapitilasation drive in Nigerian banking happened in 2004 when the CBN raised the capital base from ₦2 billion to ₦25 billion. The mergers and acquisitions that resulted from that process reduced the number of banks from 89 to 25. Similar mergers and acquisitions are expected to happen before the CBN’s 24-month deadline although the country’s tier-1 banks are generally expected to raise the required amounts relatively easily.
Read MoreNigeria’s request to extradite Binance exec from Kenya could face complications
Nigerian authorities have asked Kenya to arrest and extradite Nadeem Anjarwalla, the Binance executive who escaped detention on March 25 after being charged with tax evasion, per the Daily Post. A detective with the Directorate of Criminal Investigations (DCI) who asked not to be named because of the sensitivity of the matter told TechCabal the DCI has received a request to extradite Nadeem Anjarwalla from Nigeria but is yet to act. “You cannot just walk in and arrest him based on the request. It’s a process. Also, the Anjarwallas are influential and have the backing of some powerful people,” said the detective. Nadeem Anjarwalla is the son of Atiq Anjarwalla, a senior partner at Anjarwalla & Khanna Advocates, one of the largest commercial law firms in East Africa. The law firm represents some of the top companies in the region and a list of high-net-worth individuals. Nadeem, who holds Kenyan and British citizenship, was arrested alongside his colleague Tigran Gambrayan on February 26 when they arrived in Nigeria to discuss the government’s decision to block Binance. While Gambrayan is still in custody and has pled not guilty to money laundering charges, Nadeem escaped from an Abuja guest house where he was held and escaped to Kenya before he was arraigned. Nigeria’s Federal Inland Revenue Service (FIRS) has accused Anjarwalla and another Binance executive, Tigran Gambaryan, of failing to register the crypto exchange with it for tax purposes. FIRS said in court disclosures that Binance failed to deduct Value Added Tax (VAT) and aided users in evading taxes through its platform. Binance and the executives have denied the claims. Anjarwalla’s arrest and subsequent extradition could face a protracted legal challenge, dragging the Nigerian case. The process of sending a Kenyan to face trial for crimes committed in another country is complicated. “Police agencies share information among themselves and through the Interpol. The collaboration can only go up to a certain level as allowed by the law. Effecting an Interpol red notice or a foreign arrest warrant is entirely different,” the detective said. According to Kenya’s extradition laws, for Anjarwalla to be arrested, a Nigerian court must issue an arrest warrant, which should then be sent to Nairobi’s attorney general or cabinet secretary. Nigeria can also obtain a red notice through Interpol, the global police body. Upon arrest, the Kenyan police must seek the consent of a court–a process that could take months, possibly years. A notable case that has dragged is a request to send former minister Chris Okemo and ex-Kenya Power CEO Samuel Gichuru to face money laundering and fraud charges in Jersey Island. The request was filed in 2011.
Read MoreDelayed salaries and staff cuts at Tingo Group months after SEC fraud charges
Tingo Group, an agri-fintech company sued by the SEC in December 2023 for fabricating its financial statements, furloughed nearly all its full-time employees in March 2024. The furlough, which affected at least fifty employees, came after three months of salary delays, two former employees said. The company promised they would be paid by February 2024. “I appeal to you to stay, let us fix the system together. This will end, God willing, very soon… I do not want anyone laid off,” the group’s CEO, Dozy Mmobuosi, said in a recording of a January 31 company-wide call obtained by TechCabal. He also promised that the outstanding salaries would be paid in four weeks. The promises were made despite the company’s legal troubles. In late 2023, the SEC began an investigation into Tingo Group and found that while the company reported having cash and cash equivalent of $461.7 million for the fiscal year 2022, its bank accounts held less than $50. Weeks after the charges were filed, some Tingo employees were given a pay raise. “Some people received a 200% pay increase, some 300% and others 400%,” an executive at the company said. In March, employees were told they would be furloughed until the company could afford to pay them. “Based on present realities and considering the uncertainties ahead and in order to avoid setting unrealistic expectations, which could have an adverse effect on the well-being of our employees, the company will have to put the employment of all employees on furlough,” an email addressed to the entire Tingo team employees read. The furlough was effective March 1. A highly placed executive who still works at the company told TechCbal that it was a natural move for the company, considering its financial struggles. “The company’s assets have been frozen. Vendors who owe the company payment have taken advantage of the circumstances [to forfeit their obligations,]” he said on a call with TechCabal. The company did not share any information about the promised salary payments. Tingo Group declined to comment on the matter and invited TechCabal to a press event for a product launch. According to that invitation, Tingo Foods will launch two new beverages on March 16 at a cocktail event hosted by an affluent traditional ruler, the Ooni of Ife. “There was no money to pay outstanding salaries, but there is money to produce drinks?” an ex-employee said in response to the news. This is the second time Tingo has laid off staff this year. In February 2023, the company abruptly terminated about 40 contract staff while owing them salaries for work done for Tingo Mobile in December 2023 and January 2024.
Read More
👨🏿🚀TechCabal Daily – A not-so-open view
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning We have amazing news! TechCabal’s WhatsApp channel is live! Get the latest insights from our newsroom on WhatsApp! What’s more? You get to interact with our reporters and get exclusive peeks at the reporting process. Click here to get started. In today’s edition Wema Bank battled $594,943 fraud in 2023 TikTok recommits to user safety in Kenya Openview wins against MultiChoice Paratus launches fibre network route between Johannesburg and Europe The World Wide Web3 Opportunities Cybersecurity Wema Bank battled $594,943 fraud in 2023 Financial institutions were reportedly among the ten fastest-growing sectors of the Nigerian economy in 2023, with a growth rate of 28.86% from 17.24% in 2022. But fraud is becoming a significant threat to Nigeria’s financial system, with both traditional banks and fintech startups struggling to contain it. In the latest fraud reveal, Wema Bank, a tier-2 Nigerian bank with ₦1.8 trillion ($1.6 billion) in customer deposits, reportedly lost ₦685 million ($594,943) to fraudulent activities in 2023. Wema, which saw its 2023 profits soar from ₦11 billion ($9.5 million) in 2022 to ₦35 billion ($30.3 million), had its performance overshadowed by the fraud. How did it happen? According to a Wema Bank spokesperson, the losses came from their digital banking channels, collection and payment services, and transactions involving third-party partners on their platform. The bank also cited inadequate Know Your Customer (KYC) procedures and compliance issues as contributing factors. To address the problem, Wema Bank has bolstered its fraud monitoring systems and expanded its digital compliance team. The bank also claims a decrease in fraud cases for the first quarter of 2024, though independent verification is pending. Wema’s experience is not unique. In October 2023, Fidelity Bank reportedly lost $2.5 million to fraudsters in three attacks. Court documents also reveal that Access Bank, Nigeria’s largest bank by customer deposits filed lawsuits in June and July 2023 to recover a combined $6.9 million lost to illegal withdrawals. Fintech giants like Flutterwave haven’t been spared either, with alleged cyberattacks in March 2023, resulting in a $3.7 million loss. According to the Financial Institutions Training Centre (FITC), Nigerian financial institutions have lost over $201.5 million to fraud since 2020. Read Moniepoint’s case study on family-owned businesses Family-owned businesses are everywhere, shaping our world in ways you might not expect. We’ve found some insights into how they work, and we’d love to share them with you. Dive in right away here. Social media Amidst parliamentary scrutiny, TikTok commits to user safety in Kenya TikTok has reaffirmed its dedication to maintaining a safe environment for its users in Kenya. Fortune Mgwili-Sibanda, TikTok’s director of government and public policy for sub-Saharan Africa, this week, talked about how TikTok’s policies will provide guidance and serve as safety measures while appearing before the parliament. Mgwili-Sibanda explained that TikTok’s Community Guidelines will provide guidance on the regulations of the platform and will help the community feel positive and safe. With a significant investment of over $2 billion globally in Trust and Safety initiatives this year, TikTok remains determined in its mission to prioritize user safety. Why is TikTok having this conversation? TikTok is engaging in a safety guideline discussion with Kenya’s parliament in response to a petition received by the Kenyan House of Assembly in 2023. The petition, submitted by a concerned citizen, called for TikTok’s ban due to explicit content. The petitioner highlighted a trend among users of creating sexual videos on TikTok during nighttime livestreams. Is a ban the solution? President Ruto thought that a ban wasn’t the answer since many Kenyans are using TikTok for their careers. Instead, he had a virtual meeting with TikTok to improve how they moderate content. The CEO of Tik Tok Shou Zi Chew agreed to set up a TikTok office in Kenya to coordinate its operations on the continent. President Ruto said the move would ensure that content on the platform is moderated to fit community standards. Moreover, the platform says it will continue hosting capacity-building workshops for policymakers and regulatory agencies, focusing on online safety, data privacy, and content moderation. TikTok has also invited lawmakers and other government officials to visit its Transparency and Accountability Centre in Dublin. During this visit, legislators will get to observe firsthand how TikTok’s teams ensure the safety of the community. No hidden fees or charges with Fincra Collect payments via Bank Transfer, Cards, Virtual Account & Mobile Money with Fincra’s secure payment gateway. What’s more? You get to save money for your business when you use Fincra. Start now. Streaming Openview wins against MultiChoice in ongoing broadcasting rights disput South Africa’s Openview, a free-to-view satellite platform owned by eMedia, has a history of battling MultiChoice, the pay-TV giant, over broadcasting rights. In October 2023, Openview took MultiChoice to court accusing the company of monopolising Rugby World Cup broadcasting rights. MultiChoice and the state-owned South African Broadcasting Company (SABC) reached last-minute agreements for the Rugby and Cricket World Cups, but with restrictions. SABC got rights to broadcast important matches, including those with South Africa’s teams, semis, and finals, but only on SABC channels, not Openview. This caused a dispute with eMedia. What’s the issue now? Openview wants SABC to be able to air live sports (sub-licensed from MultiChoice) on its free satellite platform as its parent company, eMedia, argues that SABC’s exclusivity limits viewer choice and hinders competition. The Competition Tribunal has now sided with eMedia in a temporary ruling. For the next six months, MultiChoice cannot enforce restrictions that prevent SABC from broadcasting sub-licensed sports on Openview. The Tribunal said the reasons for its decision will be issued in due course. Accept fast in-person payments, at scale Spin up a sales force with dozens – even hundreds – of Virtual Terminal accounts in seconds, without the headache of managing physical hardware. Learn more → Internet Paratus launches fibre network route between Johannesburg and Europe After it completed a high-speed fibre optic link stretching 1,890 kilometres from
Read More