- September 11 2024
Chaos at Jomo Kenyatta Airport as workers strike to oppose Adani lease proposal
Several flights were canceled, and hundreds of travelers were left stranded at Jomo Kenyatta International Airport (JKIA) after aviation workers began a strike over a proposal to lease the airport to India’s Adani Group for 30 years. Those workers want the deal canceled over fears of mass layoffs. At 10:00 am on Wednesday, a spot check by TechCabal showed that no flight had landed or taken off at the country’s main airport. Data from Flightradar, a global flight tracking platform, recorded minimal activity at East Africa’s busiest transport hub. The disruption has affected both international and domestic flights. “Kenya Airways would like to alert you that due to the action by some JKIA staff, this has resulted in some delays and possible cancellations of some of our flights for both departing and arriving passengers,” Kenya Airways said in a notice to passengers. Kenya Airports Authority (KAA) did not immediately respond to a request for comment. On Monday, the government’s last-minute efforts to stop the Kenya Aviation Workers Union (KAWU) failed after the representatives accused state officials and airport management of ignoring their demands. “The government has failed to provide the documents we requested for the Adani deal. The strike will go on until the government stops the deal,” said Moss Ndiema, KAWU secretary general. A Kenyan high court suspended the 30-year build-operate-transfer concession until it rules. The privately-initiated project by Gautam Adani’s firm has been opposed over controversial clauses including stopping Kenya from building or expanding other competing airports for 30 years. While the government has defended the deal as the best option to expand JKIA amid a cut in development budgets, it maintains that a decision has not been made to proceed with the lease. On September 3, Kenya sent 16 officials to India for due diligence including inspecting the company’s financial records. At the same time, the Indian conglomerate sent representatives to Nairobi, signalling that the deal could be in advanced stages. “Secret, unknown, unexplained and clandestine movements and activities by Adani employees, agents or assigns around JKIA and related installations be halted and stopped forthwith,” KAWU said in a notice.
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- September 11 2024
TechCabal Daily – Ride-Hailing Woes and Banking Trends
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning If you want to dive into the future of African tech, then Moonshot 2024 is where you want to be. Connect with industry pioneers, explore emerging trends, and discover untapped business opportunities in one of the world’s most dynamic markets. Enjoy the vibrant energy of Lagos while staying seamlessly connected with prepaid eSIMs from Sochitel. Register now for two days of inspiration, networking, and innovation. Risevest completes Hisa acquisition Cost considerations are driving shrewd Nigerian banking business Are ride-hailing platforms broken? Drivers say yes Egypt’s inflation soars first time in five months The World Wide Web3 Opportunities M&As Risevest completes Hisa acquisition Eke Urum, CEO of Rise, and Eric Asuma, co-founder of Hisa While Nigeria’s Access Bank is easily the busiest M&A machine in the financial services space, fintech startup Risevest isn’t doing badly either. Two months after we first reported that it was in talks to buy the Kenyan fintech startup Hisa, the deal has officially closed. It’s Risevest’s second acquisition in a little under a year. Anatomy of the deal: Risevest and Hisa are fintech startups allowing a growing class of African retail investors access to global stocks and other investment options like real estate. An acquisition of Hisa, which has been approved by Kenya’s markets authority, allows Risevest to expand to Kenya without any hassle. Without this acquisition, getting a licence to operate a fintech in Kenya may have taken up to two years. How much did this deal cost? Risevest and Hisa prefer not to say, although one person with direct knowledge of the deal said it was a cash and stock deal. While a 2022 fund raise valued Hisa at $5 million, it’s doubtful that it would have sold for anywhere near that price. Watch out for Kenn’s article on why this deal made sense for Hisa. A nose for a deal? Risevest acquired Nigerian fintech Chaka in September 2023—it also declined to share the specifics of that deal. That deal made sense because it allowed Risevest to expand its slew of licences, said one person familiar with the deal. Chaka for instance, offered Nigerian stocks and was one of the first companies to receive a digital sub-broker licence from the Securities and Exchange Commission (SEC). Given that both companies’ investors were interested in making the 2023 deal happen, it is likely to have been a stock-only deal. Will we continue to see savvy dealmaking from Risevest as it adds more infinity stones spots more opportunities? Its CEO artfully sidestepped that question. However, he spoke to us on what the future holds for Hisa under new ownership. Read about it here. 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. Banking How cost considerations are driving shrewd banking business in Nigeria Image Source: Wunmi Eunice/TechCabal. How do the rich stay rich? By shrewdly keeping an eye on costs and ruthlessly pruning anything that may become a drag on their finances later. That’s the story of Nigeria’s biggest commercial banks which reported a combined ₦9.51 trillion ($5.7 million) in profits in 2023. Some tier-1 banks briefly hit ₦1 trillion (($608 million) in market capitalisation despite Nigeria’s macroeconomic conditions. Nigeria’s big banks have perfected the art of eking out profits regardless of the economic conditions and USD-denominated costs are the current enemy of that goal. The decision to float the naira has significantly increased technology costs; think storage, software licencing and even hardware. While banks are notoriously conservative businesses, we’re seeing some flexibility in how they’re thinking about technology costs. On Monday, Sterling Bank formally announced its move to SeaBaaS, a new core banking application. One person suggested that cost consideration may have played a part in the decision to have its custom software. Beyond software, local cloud players are also finding joy pitching to companies. With more competitive pricing than AWS or Azure, big organisations are trying new entities. Huawei, the Chinese enterprise company that went from upstart to a dominant player in the telecoms market, is also seeing and taking opportunities in the Nigerian banking space. Here’s an excerpt from a TechCabal story about how Huawei sold some storage to United Bank for Africa (UBA), a tier-1 commercial bank; “They lure customers in with the option of a free-to-use one-year solution,” said one cloud engineer at another tier-1 bank, citing Huawei’s extended proof of concept that allowed banks to use specific solutions for free. “No one else will offer you a one-year proof of concept,” another cloud engineer said. Read about it here. Fincra secures International Money Transfer Operator (IMTO) licence in Nigeria Since its inception, Fincra has provided businesses with local payment options. However, with the IMTO licence, Fincra can now manage funds transfers from abroad to Nigerian recipients more efficiently. Read more here. Mobility Are Ride-Hailing Platforms Broken? Drivers Say Yes Image source: TechCabal Kenyan and Nigerian gig drivers can trade places given how similar their challenges are. Two weeks after gig drivers in Kenya defied the almighty algorithms of Uber and Bolt to fix their own prices—that was always going to be shortlived for reasons I’ll explain later—Nigerian drivers are lightly copying the playbook. One gig driver in Lagos shared that trips under ₦3,000 ($1.82) are not worth his time; drivers are now telling customers to pay extra or cancel the trips. On Monday, my colleagues in Abuja took four trips on Bolt and Uber for which they had to pay above the prescribed prices. Is the gig driving model broken? Or are macroeconomic conditions spotlighting problems in a fragile business model? These questions are crucial as the gig economy faces increasing tensions between drivers and ride-hailing companies. Drivers in Kenya and Nigeria are protesting low fares, rising costs, and the perceived unfairness of the platform algorithms. Bolt and Uber increased fare
Read More- September 11 2024
Exclusive: Nigerian investment fintech Rise completes acquisition of Kenya’s Hisa
Rise, a Nigerian fintech that gives customers access to selected global investments, has acquired Hisa, a Kenyan investment startup. The acquisition, the second for Rise in under a year, was approved by Kenya’s Capital Markets Authority (CMA) and gives Rise the right to operate in Kenya. Post-acquisition, Hisa will retain its brand and operations, including its staff. “We like the Hisa name because it resonates well with Kenyans so we have no plans on changing it,” Rise CEO Eke Urum told TechCabal. “We are not planning to make a lot of changes; it is time to understand the company, the culture, the context, and the market that we are coming into.” While Rise declined to share transaction details, one person with knowledge of the transaction told TechCabal the deal involved a mix of stock and cash. Hisa CEO Eric Jackson will become chief technology officer (CTO), a position he previously held before Eric Asuma, Hisa’s co-founder and then CEO, stepped down. Asuma, the founder of the business publication Kenyan Wall Street, co-founded Hisa with Jackson in 2020 and will stay on as a strategy advisor. Leah Njoroge, a former investment analyst at Kenyan Wall Street and finance associate at Hisa, has been named head of operations. All seven Hisa employees will report to her. Njoroge will report directly to Urum, who will now oversee Hisa as part of his wider portfolio of acquired startups. “With these two changes, we have some clarity on how we are going to grow in the next few months,” Eke said. Hisa plans to hire additional leaders once it starts seeing operational improvements. “Then maybe there will be a conversation on bringing external leadership to bolster the team. Otherwise, everything remains the same.” Hisa investors, including Faida, a Kenyan investment bank, Ham Serunjogi, and Majid Moujaled, co-founders of Chipper Cash, were involved in the acquisition talks. Eke declined to comment on whether any of the investors left Hisa post-acquisition, although he confirmed that Faida is still an investor.
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- September 10 2024
How to buy the new iPhone 16 in South Africa at cheap rate 2024
South Africa is now part of Apple’s global strategy, marking its importance in the tech world. Following the recent Apple event, South Africa has been confirmed as one of the first-wave countries for the iPhone 16 launch. This ensures that South African consumers have access to the latest Apple innovations, alongside key global markets. If you’re looking to buy iPhone 16 in South Africa, here’s how to get it with ease: Pre-order and store-launch dates Pre-order date: 13 September 2024 Available in-store: 20 September 2024 South Africans can pre-order their iPhone 16 starting from the 13th of September. This guarantees early access and the ability to secure the device before it hits stores. The iPhone 16 will be officially available in stores from the 20th of September. iStore’s contract price freeze offer The iStore in South Africa is offering a fantastic “Contract Price Freeze” that allows consumers to upgrade to the new iPhone 16. This upgrade is without any increase in their current monthly contract fee. This offer is designed to help South Africans manage inflation and rising costs, making it more affordable to buy iPhone 16 South Africa. Key benefits of the Price Freeze: No contract price increase: Keep your current plan’s price. Easy upgrade: Trade in your existing iPhone and maintain the same monthly cost. Trade-In offers to buy the new iPhone 16 in South Africa at cheap rate 2024 For those looking to reduce costs, iStore offers up to R22,000 cash back when you trade in your old device. You can trade in up to five devices, including Macs, iPads, iPhones, Apple Watches, or even Android smartphones. Cash back options: Either use the trade-in value towards your new iPhone 16 or get the cash deposited directly into your bank account. iCarePlus and buy-back programme Another benefit when you buy iPhone 16 in iStore in South Africa is the iStore’s iCarePlus package. The package comes with every iPhone purchase. This package offers an extra year of warranty and screen repair, alongside a guaranteed buy-back of 55% of the iPhone’s value after two years. Free iCarePlus valued at R1,999. Guaranteed buy-back: Future-proof your investment with a minimum buy-back value. Final thoughts on how to buy the new iPhone 16 in South Africa at cheap rate 2024 Buying the new iPhone 16 in South Africa has never been easier, with early access, trade-in options, and financial flexibility provided by iStore. Whether you’re upgrading from an older model or looking to experience Apple’s latest technology, the iStore ensures that South Africans can buy iPhone 16 South Africa with ease and convenience.
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- September 10 2024
Apple’s new 2024 AirPods lineup features, pictures and prices
Apple has recently expanded its AirPods lineup, offering a variety of features across the four new 2024 Aipods models to cater to different user needs. If you haven’t, you should see the new iPhone 16 series launched alongside the Apple series 10 & Ultra 2 watches, and the four Airpods models. Below is a summary of each model’s key specifications and prices. 2024 new AirPods 4 Price: $129 Charging Case (USB-C) H2 chip: Delivers improved performance and sound quality. Voice Isolation: Enhances call clarity by isolating your voice from background noise. Personalised Spatial Audio: Dynamic head tracking creates an immersive listening experience. Battery: Up to 5 hours of listening time on a single charge, extending to 30 hours with the charging case. Durability: Dust, sweat, and water-resistant. Connectivity: Bluetooth 5.3, and supports “Hey Siri” for hands-free assistance. New 2024 AirPods 4 with active noise cancellation Price: $179 MagSafe Charging Case with USB-C + speakers: Offers additional convenience with wireless charging. H2 chip: Improved processing power. Active Noise Cancellation: Blocks out external sounds for a focused audio experience. Adaptive Audio: Automatically adjusts the sound for your surroundings. Transparency mode: Lets in external sounds, keeping you aware of your environment. Conversation Awareness: Automatically lowers volume when you start speaking. Voice Isolation: Ensures crystal-clear calls. Battery: Same as the standard AirPods 4, with 5 hours of listening time and up to 30 hours with the case. Durability: Dust, sweat, and water-resistant. Connectivity: Bluetooth 5.3 and “Hey Siri” support. AirPods Pro 2 Price: $249 MagSafe Charging Case with USB-C + speakers: Convenient charging solution with speakers for sound feedback. H2 chip: Advanced processing for superior audio quality. U1 chip: Precision finding for the charging case using the Find My network. Active Noise Cancellation: Now up to twice as powerful as the previous generation. Adaptive Audio and Transparency mode: Offers both immersive sound and environmental awareness. Conversation Awareness: Smart technology that adjusts audio when you speak. Voice Isolation: Enhances call clarity. Hearing Test, Hearing Aid, and Hearing Protection: Advanced hearing features for a tailored experience. Touch Control: Easy swipe controls for managing volume and playback. Battery: Up to 6 hours of listening time, and up to 30 hours with the charging case. Durability: Dust, sweat, and water-resistant. Connectivity: Bluetooth 5.3, with “Hey Siri” support. AirPods Max Price: $549 Smart Case with USB-C: A premium protective case with convenient charging. H1 chip: Provides excellent performance with seamless device pairing. Active Noise Cancellation: Powerful ANC for an uninterrupted listening experience. Personalised Spatial Audio: Dynamic head tracking for 3D-like sound immersion. Battery: Offers up to 20 hours of listening time on a single charge. Durability: No specific water or dust resistance. Connectivity: Bluetooth 5.0 and “Hey Siri” support. Each model in Apple’s updated AirPods lineup offers a range of features tailored to different audio preferences and lifestyles. Whether you need powerful noise cancellation or an affordable option with excellent sound, Apple’s latest AirPods ensure a superior wireless listening experience.
Read More- September 10 2024
Zimbabwe will introduce crypto regulations in major policy turnaround
Zimbabwe is working on its first-ever crypto regulation, a significant policy turnaround after the Reserve Bank of Zimbabwe (RBZ) barred banks from processing cryptocurrency transactions in 2018. In May 2024, the government-appointed National Risk Assessment Coordination Committee (NRACC) began consultations with crypto stakeholders to develop a regulatory framework. That consultation ended in June. For crypto stakeholders, this regulation—which may include issuing licences for crypto exchanges—will legitimise the industry. NRACC did not respond to a request for comments. The government has asked crypto players to form lobby groups, people familiar with the matter said. “Being able to speak directly with regulators presents a simpler gateway to building scalable products instead of having to try to bypass existing regulations because there are no enabling regulations,” said Vusa Chimanikire, founder of fintech startup Entry. Zimbabwe’s history of currency volatility forced citizens to find alternatives in crypto exchanges like Binance, Coinbase, and home-grown Golix. With the regulatory framework, the government hopes to reverse the mistake of allowing crypto exchanges to operate unregulated before the 2018 ban, which led to financial losses for citizens. Crypto stakeholders say issuing licences for crypto asset service providers (CASPs) is important. However, for this to happen, crypto should be recognised as a financial asset. Since the ban, crypto-related businesses have been unable to open bank accounts. Instead, they rely on payment providers such as PayPal and Payoneer to store and move funds. “If you are a business and cannot even open a bank account, you might as well not exist,” one founder who runs a Telegram-based crypto trading platform said. Since the ban, crypto trading moved to underground speculative trading which led to crypto pyramid schemes. In May 2024, Dr. Solomon Guramatunhu, a popular Zimbabwean ophthalmologist, reportedly lost over $100,000 in a crypto scam. “The Golix fiasco and other scams painted crypto in a bad light because the victims never got back their coins or any justice,” one crypto stakeholder who asked not to be named said. “So maybe with the backing of a framework, trust in crypto will come back.” For users, licensing would help them deal with verifiable middlemen and help combat the high number of crypto scams in the country. “Crypto will allow more competition in the peer-to-peer transaction space dominated by mobile money, physical cash transactions, and bank transfers,” said Valentine Muhampa, a market research and analyst. For crypto players in Zimbabwe, a regulatory framework will change the perception of what was previously a Wild West industry. Until then, they will hold their breath.
Read More- September 10 2024
Gig drivers ask customers to ‘pay extra or cancel’ despite fare increases from Uber, Bolt
Gig drivers who use Uber and Bolt apps are charging customers higher than the suggested prices on those apps, blaming a recent fuel price hike and tepid reactions from ride-hailing companies. Across three separate trips in Abuja, Nigeria’s capital city, drivers added between ₦1,000 to ₦2,000 extra, claiming that the prices the apps suggested didn’t work for them. “If you book a ride that is not up to ₦3,000, drivers will demand ₦5,000 or else they’ll cancel the trip,” one gig driver told TechCabal. Ride-hailing companies are responding with slight increases in base fares and new driver incentives. “We just concluded a weekly campaign where we could win ₦10,000 fuel bonus each time we concluded a series of eight rides with little to no cancellations,” Olakunle, a gig driver, said. As their margins come under more pressure, gig drivers are opting for longer trips and telling customers upfront that they have to pay more. A second fuel price hike and quickening inflation have put extra strain on the gig-driving model, which has struggled to maintain its attractiveness as drivers ask for significant fare increases. “We have announced a 15% fare increase on our platform as we recognise the essential role our drivers play in delivering exceptional service to our customers,” Bolt told TechCabal in an email. Uber also increased base fares by 13% in response to driver concerns. Ride-hailing dark horse InDrive adjusted prices in six major cities after “feedback from drivers and passengers,” a spokesperson for the company told TechCabal. All three companies declined to share what the percentage increases will translate to regarding actual base fares. “The fare increment does not match the 47% extra we now have to pay for fuel,” Olakunle, a gig driver, told TechCabal. Olakunle, who typically works 10-hour days, used to make about 30 trips in three days before the latest fuel hike. Now, he makes less than 20 trips because of cost considerations. Customers are also likely pulling back from using ride-hailing services. “Cab rides are now more expensive. My journey back home used to cost around N2500- ₦3000. It’s now about ₦6500 on Bolt. I was able to bargain for ₦4,000 on InDrive,” a rider lamented.
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- September 10 2024
Apple officially discontinues 3 of the iPhone series 2024
In a significant shift within its product lineup, Apple has officially discontinued the iPhone 15 Pro, iPhone 15 Pro Max, and iPhone 13 models following the highly anticipated launch of the iPhone 16 series on September 9, 2024. This decision marks the end of production for three of Apple’s most successful and iconic smartphones as the company introduces its next-generation devices, setting new standards for mobile technology. A farewell to the Apple iPhone 15 Pro and Pro Max in 2024 The discontinuation of the iPhone 15 Pro & Pro Max comes as a surprise to some. This shock is due to the fact that the phones were only launched in September 2023. Despite their relatively short lifespan, these models quickly earned praise for their cutting-edge features, including the A17 Pro chip, and an advanced camera system. The move is part of Apple’s strategy to focus on the future, especially with the launch of the iPhone 16. The iPhone 16 Pro models now take the place of their predecessors with advanced hardware, including a more efficient and powerful A18 Bionic chip, enhanced camera systems, and, for the first time, under-display Face ID technology. These upgrades ensure that the iPhone 16 Pro and Pro Max are positioned as the most innovative smartphones in the market, further justifying Apple’s decision to discontinue the earlier models. The end of an era for the Apple iPhone 13 in 2024 The discontinuation of the iPhone 13 signals the end of one of Apple’s most successful iPhone models. Launched in 2021, the iPhone 13 was a massive hit due to its balance of performance, battery life, and camera quality at a relatively lower price point compared to the Pro models. It became a favorite among everyday users looking for an upgrade without breaking the bank. The iPhone 13 remained available through Apple’s official channels even after the iPhone 14 series launch. But now, it’s clear that the company now wants to streamline its offerings and push consumers toward the latest technology. The iPhone 16 series, particularly the base models, offers a lot. These include improved processing power, better battery efficiency, and new design elements that make it a clear successor to the iPhone 13. Why the discontinuation? Apple’s decision to discontinue these models follows its typical product lifecycle strategy. Each year, Apple refines its smartphone lineup by discontinuing older models to ensure focus on newer releases. The iPhone 15 Pro and iPhone 13, while still excellent phones by today’s standards, have been replaced by superior products in the iPhone 16 lineup, which come with more advanced hardware and software capabilities. By discontinuing these models, Apple also aims to streamline its supply chain, reduce production costs, and simplify its product range for consumers. Additionally, with the release of the iPhone 16 series, the company hopes to encourage users to upgrade, offering trade-in options and emphasizing the sustainability aspects of recycling old devices. What’s new in the iPhone 16 series? The iPhone 16 series, which has now taken the spotlight, brings several cutting-edge advancements. Here are some key features: A18 Bionic chip: The iPhone 16 Pro models are powered by Apple’s most advanced chip to date. The offering allows better performance and efficiency, especially in tasks like gaming, video editing, and AI-driven applications. Under-Display Face ID: A first for Apple, the iPhone 16 Pro and Pro Max come with under-display Face ID sensors. This feature offers a seamless front design without the traditional notch. Camera innovations: The new iPhones feature improved camera systems. The system features better low-light performance and new optical zoom options. Additionally, it has computational photography enhancements that deliver professional-quality images and videos. Improved Battery Life: Thanks to the A18 chip and better thermal management, the iPhone 16 series promises longer battery life. See fuller specifications of the new iPhone 16 series here. What happens next? You may wonder what the discontinuation of the iPhone 15 Pro & Pro Max, and iPhone 13 means for consumers. It simply means they are no longer available on Apple’s website and retail stores. However, these models may still be available through third-party retailers, and some may choose to purchase them at discounted prices. Apple will continue to support these devices with software updates for several years. This gesture ensures existing users are not behind. The discontinuation, however, sends a clear message—Apple is all-in on the future, and that future is embodied in the iPhone 16 series. Final thoughts As Apple officially retires the iPhone 15 Pro, iPhone 15 Pro Max, and iPhone 13, it marks the beginning of a new era with the iPhone 16 series at the helm. Apple’s relentless drive to innovate ensures that users will experience even more advanced technology in the palm of their hands with its latest offerings.
Read More- September 10 2024
Kenyan ride-hailing drivers strike again as they ask for $3 base fare
Hundreds of partner drivers in Kenya have turned off the Uber, Bolt, and Faras apps, forcing passengers to wait longer and pay more for trips. It is the second strike after the ride-hailing companies increased base fares by 10% in August. The drivers argue that those increases are “insignificant” and want a minimum base fare of KES300 ($2.33) for cabs. “We have resumed the strike because our demands were not met. We are meeting NTSA officials who have convened a session with all the stakeholders to find a solution,” said Dennis Nyariki, the vice chairman of the Organisation of Online Drivers Kenya (OOD). In a few instances on Tuesday, gig drivers who defied the strike action were harassed, and their tyres deflated. Most decided to stay home, only responding to regular clients who take rides off the app. “I can’t take you to Westlands. It’s risky. Some drivers have been attacked for not complying,” said Steve Musyoki, a 34-year-old driver. ”The companies have left many drivers trapped with loans, unable to provide for their families.” Uber and Bolt launched in Kenya in 2015 and 2016, respectively, and their low prices and convenience made them popular options in Nairobi. However, increased competition and a push to acquire customers has led to pricing decisions that drivers disagree with. When the companies launched, a taxi trip per kilometre was KES65 ($0.50). At present, the apps charge KES28 ($0.22). The drivers want the minimum base fare to be $1.55/km (for vehicles below 1000cc) and $3.49/km for 2,000cc vehicles. “Responsibilities are growing, but our earnings are declining. What would you do when you have to pay for and your only source of the money does not pay attention to your pain?” asked James Njiru, a gig driver who works for all three leading apps.
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- September 10 2024
Exclusive: Huawei wins multi-million dollar storage deal with UBA, as it makes inroads into Nigerian Banking
Nigerian banks like UBA are keen to keep USD-denominated costs low; it is the perfect opportunity for Huawei to make inroads into banking. An inside joke in Nigerian banking is that any Chief Information Officer (CIO) who wants to keep their job must immediately get on the phone with technology giant IBM. It’s an acknowledgment of how Nigeria’s biggest banks use IBM’s products for storage and how its reliability has kept many CIOs in their jobs. Yet, an increased drive to cut USD-denominated costs at these banks may mean that CIOs are now calling other companies. A push to cut costs at top banks is letting Chinese enterprise company Huawei make inroads with its storage and cloud solutions. Huawei sold storage solutions to Zenith Bank, a tier-1 Nigerian bank, in 2023, TechCabal exclusively reported in March, and did business with Fidelity, First Bank, and Opay. Its latest major deal is with United Bank of Africa, a commercial bank with a market capitalisation of ₦803 billion. Three people familiar with the matter said Huawei sold 200 petabytes of storage and cloud solutions to the United Bank for Africa (UBA) in a deal thought to be worth around $3 million. Huawei declined to comment on any part of this story. UBA did not immediately respond to a request for comments. UBA has significant storage needs with over 30 million customers in retail and corporate banking, and as the bank’s existing capacity began to fill up, it was faced with the expensive prospect of expanding its storage, said two people familiar with the matter. UBA has historically used IBM for storage and VMWare for virtualized technologies. However, Broadcom’s 2022 acquisition of VMWare led to an unexpected change. VMWare switched to a subscription model, almost tripling the licensing cost for users. It left banks searching for cheaper alternatives. Huawei seized the opportunity and sold several servers and dedicated cloud hardware to the bank, offering discounts and lower pricing, two people said. “They lure customers in with the option of a free-to-use one-year solution,” said one cloud engineer at another tier-1 bank, citing Huawei’s extended proof of concept that allowed banks to use specific solutions for free. “No one else will offer you a one-year proof of concept,” another cloud engineer said. It’s a shrewd bit of business for a company that bills itself as the one-stop shop for banks, telcos, and large organizations. The new storage allows UBA to migrate some workloads while using IBM and Huawei storage simultaneously. Exclusive: Sterling Bank outage caused by migration to new core banking application While this is a massive deal for the Chinese company, its push to win over more business from the banks it already deals with, as it has done in telecoms, is facing security concerns. Three people at major banks said many banks have concerns about data security and privacy. These concerns mean that many banks will continue using IBM for some critical workloads for now. Yet Huawei is here to stay. It is in talks with at least one other tier-1 bank to provide cloud storage services, two people with knowledge of the matter said. As always, the company’s playbook is deceptively simple: total domination.
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