- August 27 2024
Wasoko, MaxAB finalise “category king” merger
After a four-month delay, Wasoko, a Kenyan B2B e-commerce platform, has completed an all-stock merger with Egypt’s MaxAB. The merged entity will have a new name, which the company declined to share, citing a rebranding process which will soon begin. Daniel Yu and Belal El-Megharbel, the co-founders and CEOs of Wasoko and MaxAB, will jointly lead the merged entity as co-CEOs. They will also serve alongside existing investors, including Silver Lake and Tiger Global, on the company’s board of directors. Wasoko and MaxAB contributed nearly equal stakes to the combined entity, Yu told TechCabal on a call, dismissing earlier claims that MaxAB has a controlling interest. “MaxAB and Wasoko have a pretty close to 50-50 shareholding,” Yu said. The merger, seen as an attempt to create a category king in the contested B2B e-commerce sector, signals investor willingness to see consolidation. Wasoko (last valued at $625 million) and MaxAB had raised over $230 million from investors like Tiger Global, Impact Engine, and the University of Chicago. TechCabal reported in December 2023 that the deal is structured as an equity consideration, which means existing shareholders will receive shares in the new company. First announced in December 2023, the deal was expected to be finalised in April 2024. Wasoko declined to provide specifics about the delay due to the merger’s “sensitive” nature. The new entity will capitalise on MaxAB’s position as a leading B2B beverage supplier to a network of small retailers throughout North Africa. While Cairo will serve as the headquarters, there are no plans for job cuts since Wasoko made 100 duplicated roles redundant in December 2023. The new entity will initially operate in five countries—Kenya, Tanzania, Rwanda, Egypt, and Morocco. Wasoko was in Zambia, Uganda, and Zanzibar but closed shop in those markets in March 2024. The new entity will have 450,000 merchants serving 65 million consumers. The integration of Wasoko and MaxAB’s tech and operations was completed in 60 days, the company claimed. Former Wasoko employees told TechCabal in January 2024 that MaxAB’s systems were preferred, as MaxAB had also brought its staff from Egypt for the integration exercise.
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- August 27 2024
Full details for new US Visa service system for Nigeria 2024
As of 26th of August 2024, the U.S. Embassy in Abuja and the U.S. Consulate General in Lagos have officially transitioned to a new visa payment and scheduling system. This shift introduces a new service provider, designed to enhance the efficiency of the visa application process. The US visa new website for Nigeria 2024 is now live, providing applicants with a streamlined platform to manage their visa appointments and payments. Key changes effective from 26th of August 2024 Starting 26 August 2024, all visa-related services will be managed through the new website. Here’s what you need to know: New website live: The new US visa appointment booking and payment system is accessible at https://www.usvisaappt.com/visa/country?country=NG, replacing the previous ustraveldocs.com platform. Document submissions deadline: All submissions under the old system are either in migration or cessation, depending on their relevance. Applicants must follow the new procedures outlined on the live website. How to manage your interview appointments With the US visa new website for Nigeria 2024 now operational, here’s how you should manage your interview appointments: Future appointments before 26 August 2024: If you have an appointment that was scheduled before the new system went live, do not panic. Your interview will still take place on the original date you selected. Within the next two business days (from 26th of August), you will receive an automatic email at the address you registered on the previous website, providing instructions on setting up your account on the new platform. No need to reach out; simply wait for the email with further details. Please constantly check your spam as well to make sure you do not miss the mail as it may arrive there. Visa fee payments for US visa in Nigeria 2024 going forward With the transition now complete, please note the following: No more cash payment: You will now use only the new website to pay for your visa, just like every other online transaction. As such, the GT Bank cash payment intermediary ceases. GT Bank online payment hegemony: The GT bank internet banking option of payment through the bank’s website or app may also not be available anymore. If it is, it will no longer have the monopoly of online US visa fee payments regardless. What’s new after 26 August 2024 With the US visa new website for Nigeria 2024 now live, applicants can expect the following improvements: Updated documents Drop-Off/Pickup locations: New locations will be provided for document submissions/retrieval, ensuring greater convenience. Enhanced customer service: A revamped support system is now available via the new website, offering more responsive assistance. Streamlined appointments process: The new platform offers an improved process for scheduling and managing visa interviews, making the overall experience more efficient. Aligning to the new 2024 US visa system in Nigeria As the transition ensues, follow these steps: Visit the new website: Go to https://www.usvisaappt.com/visa/country?country=NG and familiarise yourself with the updated interface and procedures. Update your records: After you have opened yiur new account on the new portal, print all necessary documents, including your appointment confirmation, from the new platform. Stay informed: Regularly check the new website for updates, especially concerning document drop-off locations and other important announcements. The launch of the US visa new website for Nigeria 2024 ensures that applicants have access to a more user-friendly and effective system, simplifying the visa application process.
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- August 27 2024
TechCabal Daily – Kenya gets downgraded again
In partnership with Lire en Français اقرأ هذا باللغة العربية Good morning Here’s what one faithful subscriber had to say about the new TC Daily. “Damn! Sorry to swear but the design is too good. Kudos to the graphics designer. The overall design interface has changed to reinforce the colours of TC Daily. Anyway, brilliant work!” Do you agree? Share your thoughts in two quick minutes. Zimbabwe inflation accelerates first time since currency change Starlink cuts off South Africans Kenya gets downgraded again Dutch regulator fines Uber $324 million The World Wide Web3 Events Economy Zimbabwe inflation accelerates first time since currency change Image source: RBZ Zimbabwe’s recent switch to the gold-backed ZiG currency in April marked its sixth currency change since 2008. This drastic measure was necessitated by rampant hyperinflation, which reached a staggering 57.4% in April before the transition. While the ZiG initially seemed to quell inflation, a severe drought has exacerbated food shortages, driving up prices and reigniting inflationary pressures. As a result, Zimbabwe recorded its first increase in inflation since the ZiG’s introduction in August, primarily due to soaring food costs. Analysts predict that inflation will continue to rise until the country’s next harvest in March 2025, forcing the government and private millers to import grain to address food shortages. 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. Internet Starlink cuts off South Africans Image source: Google They say the third time’s the charm, but South African “illegal” Starlink users will be reeling from this news. After three warnings, these users have now been cut off from the Elon Musk-owned satellite internet service provider (ISP). To get licensed, the country’s telecoms regulator, the Independent Communications Authority of South Africa (ICASA), mandates that 30% of all foreign companies, like Starlink, must be owned by historically disadvantaged groups. However, the satellite ISP couldn’t meet this requirement. So, South Africans got creative. They started using roaming services. They bought Starlink kits, registered in other African countries where Starlink legally operated, from third-party resellers. ICASA has since chased down these resellers to little success. Fearing regulation trouble, Starlink threatened to cut off more than 12,700 users that violated the usage terms. After warnings in February and April 2024, these users only got a slap on the wrist. This time, they’ve been cut off from the satellite service. Getting operational clearance in African countries still eludes Starlink. Regulators want to control the content shared over Starlink. Since Starlink’s satellites don’t have a physical presence in the countries, it’s not possible to hold Starlink responsible for content transmitted over the signals. This is what Kenya’s biggest telco, Safaricom, is pitching after it recently requested that regulators ban Starlink in Kenya. Critics have argued that it is anti-competitive. But for these blocked users in South Africa, only two options exist: they either move to the countries they’ve been tapping roaming access from or pray ICASA moves faster with its plan to fix the Starlink mess in Kenya; though it is demanding that foreign ISPs must provide access to updated data on its network. 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. Economy Kenya’s credit rating gets downgraded again Image source: Google Kenya’s debt woes are being thrown into full-view again after another credit rating downgrade. After Fitch and Moody’s downgrade in July and August 2024 respectively, S & P Global Ratings has downgraded Kenya’s credit rating from “B to B-”, meaning that Kenya has now been deemed credit-risky by all three of the biggest credit rating agencies. If it wasn’t convincing before now, perhaps this rating seals Kenya’s fate. These sovereign credit ratings play an important role in determining a nation’s ability to meet its debt obligations. Due to being credit-risky, raising money from debt instruments will become problematic for Kenya because the borrowing cost becomes expensive. The ratings tell investors that Kenya is not a debt-sustainable country. So, they will be wary now of providing Kenya with loans. To hedge against that risk, they will provide loans to Kenya at high interest rates. After Kenya’s president, William Ruto withdrew the Finance Bill in June, he mentioned that the country will look at alternatives to raise money. Borrowing more money at high interest rates to meet its debt obligations remains one bleak option for Kenya. The other, one that is not well received by Kenyans, is to implement taxes. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Mobility Dutch regulator fines Uber Image source: Uber How big of a deal is data protection? Planet-sized big. In 2021, over 170 French Uber drivers made data privacy complaints to a French human rights group Ligue des droits de l’Homme. The French activist group transferred those complaints to the Dutch Data Protection Authority. Yesterday, the regulator fined Uber about $324 million after it found it guilty of transferring sensitive driver information to its server in the US without adhering to global data protection standards (GDPR). The regulator claimed that Uber collected driver information including taxi licenses, location data, and in some cases criminal and medical data and sent them to its servers in the US without using data transfer tools aimed at protecting privacy. One of the lead drivers behind the complaint argues that the Dutch ruling could set a precedent for legal action against other tech companies. This $324 million fine is Uber’s largest fine yet and
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- August 26 2024
Investment bankers, lawyers could make $82million from bank recapitalisation as competition pressures fees
Intense competition amongst investment bankers, lawyers and accountants is driving fees down fees for the bank recapitalisation efforts, and banks are the biggest beneficiaries. It was always going to happen. When Nigeria’s Central Bank announced in March 2024 that it was raising the capital requirement for commercial banks by as much as tenfold, no one was surprised. The absence of surprise did not make the task less daunting—Nigeria’s commercial banks have two years to raise ₦4 trillion ($2.9 billion). For many of the banks, it’s not their first rodeo. In 2004, the minimum capital requirement was increased to ₦25 billion, leading to several mergers and acquisitions. However, the central bank’s decision to exclude retained earnings—including FX gains—makes the capital raising in 2024 efforts more daunting. That clause has forced banks to rely on selling shares to retail and private investors. While it makes for a challenging timeline for banks, it’s a significant revenue opportunity for investment bankers, accountants, and lawyers. Investment bankers, accountants, and lawyers could earn as much as ₦113.2 billion ($82.07 million) in fees, according to capped fees stipulated in the Investment and Securities Act. Nigeria’s Securities and Exchange Commission (SEC) has a 2.83% cap on the fees these professionals can charge on equity raises. “Most of the time, we don’t charge the maximum because of competition. There is always someone willing to take a lower fee. Also, if the transaction is quite significant in value or in size, it can still amount to a large amount,” an investment banker who asked not to be named so he could speak freely told TechCabal. Some issuing houses— which help banks select the most suitable approach for their capital raise and oversee the process—charge under 1% for capital raises, three people with knowledge of the matter said, citing competition. Fidelity Bank, for instance, listed nine issuing houses in its rights circular. Lawyers also face the same problem. Competition has led to “awful” fees, a lawyer at a Lagos-based law firm helping more than five banks raise capital told TechCabal. According to the SEC’s rules, legal fees are capped at ₦10 million for lawyers advising on the rights issue. However, most law firms often make less than the capped fees. “There’s a lot of negotiation involved and if you refuse the bank’s fees, they just take their business elsewhere,” the lawyer added. Lawyers conduct due diligence on the issuer to identify potential risks, and draft and review key documents such as the prospectus, placement agreements, and subscription agreements. They ensure compliance with relevant laws and that all material information about the issuer and the offer is accurately disclosed, protecting against legal claims and helping investors make informed decisions. Other professionals like auditors and accountants also make money from a rights offer but their fees are capped at ₦4 million and ₦7.5 million, respectively, according to the SEC’s rules. The SEC and the Nigerian Exchange Limited (NGX) also make money from each public raise through fees. The SEC’s fees are capped at ₦500,000 for the first ₦1 billion and 0.15% on the balance above ₦1 billion. The stock exchange can make a maximum of ₦ 400 million. The bank recapitalisation will strengthen the banking sector and help push Nigeria closer towards the government’s goal of becoming a $1 trillion economy by 2030. While it might benefit Nigeria in the long run, for now, the bank’s supporting cast is benefiting from the new capital raise. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
Read More- August 26 2024
Nigerian fintech lost ₦146 Million initially recovered from fraudsters
Fraud recovery is an important part of the financial services sector, but sometimes, the funds recovered by fintechs and banks can also be lost to fraudsters. “Eneke the bird says that since men have learned to shoot without missing, he has learned to fly without perching,” Nigerian literary giant Chinua Achebe writes in “Things Fall Apart.” He might have as well been talking about how financial institutions must adapt as bad actors continue to follow the money. In the first quarter of 2024, financial institutions reported 11,472 fraud cases in Nigeria. When fraud occurs, banks and fintechs help their customers recover funds by working with the police and the courts. Court orders help banks and fintechs to compel the receiving banks to freeze accounts or reverse questionable transactions. Commercial banks receive those refunds through bank drafts, while fintechs use partner banks. The funds are held in fraud recovery accounts before they are returned to customers. However, these recovery accounts can also be hacked. In May 2023, one African fintech lost ₦146,188,208 ($317,200) it helped customers recover from fraudsters. The fintech, which held the recovered funds with a tier-2 Nigerian commercial bank, said the account was “fraudulently hacked into,” according to court documents. The stolen funds were sent to accounts in 26 banks and fintechs, a standard method used by fraudsters to widen the trail and complicate recovery efforts. “The petitioner as (a) fraud recovery agent is helpless as these monies are some of the monies recovered on behalf of clients, which they supposed to be remitted by the petitioner to the owners,” said an excerpt of a court document seen by TechCabal. While the fintech has begun the recovery process, customers are growing impatient. “The [fintech’s] clients are disturbing the petitioner to collect their money recovered by the petitioner on their behalf and the petitioner cannot explain to their clients what exactly happened to their money.” The fintech has asked the court to compel the 26 banks and fintechs to share their customers’ KYC records and block their accounts from making transactions, highlighting the importance of KYC records. The fintech has also asked the court to issue arrest warrants for three suspected perpetrators. Exclusive: Payments giant Interswitch loses ₦30 billion to chargeback fraud, launches recovery process
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- August 26 2024
Next Wave: How investor activity changed after 2022
Cet article est aussi disponible en français <!– In partnership with –> <!–TopBanner Join us for TechCabal Battlefield, Moonshot’s startup competition where you can showcase your startup idea to a global audience and an esteemed panel of judges and stand a chance to win up to 2.5 million naira in funding for your business! Click to register for TC Battlefield First Published 25 August, 2024 The year 2021 marked a watershed moment for Africa’s tech ecosystem. A confluence of factors, including abundant foreign capital and a low-interest rate environment, fuelled a surge in startup funding. Global giants like Tiger Global and SoftBank, once synonymous with Silicon Valley, poured billions into African ventures, propelling several companies to unicorn status. However, this era of unbridled optimism was short-lived. A combination of macroeconomic factors, including rising interest rates, geopolitical tensions, and a global funding crunch, led to a significant pullback from these major investors. The continent’s overreliance on foreign capital became evident as the funding landscape shifted dramatically. Tiger Global and SoftBank, while influential, had distinct investment strategies. Tiger Global prioritised short-term returns, pleasing large institutional investors. SoftBank, on the other hand, favoured a cluster of number ones” approach, connecting diverse companies within its portfolio. Despite their differing approaches, both firms shared a common trait: a willingness to invest in emotionally appealing startups. This, coupled with their own financial setbacks, led to a slowdown in their investment activities in 2016 and 2019 For instance, Tiger’s woeful Q1 2016 performance slowed its hands. Softbank also stalled its investment in 2019 after it made a risky bet, backing WeWork. In 2021, Tiger Global and Softbank picked up the pace of their investment, leveraging on the low-interest rate environment and increasing their investments by over 300% year-on-year. Next Wave continues after this ad. We’re excited to announce our partnership with Wimbart on the second edition of their pioneering pan-African research publication, “Startup Performance Reporting in Africa”. This report is set to launch in the first week of October and aims to shed light on the intricacies of investor relations within the African tech ecosystem. The survey is now open, and we’re calling on all African founders and investors to participate. Over the past decade, Wimbart has worked closely with a wide range of stakeholders in Africa’s tech sector. Their first report identified significant challenges, notably the disconnect between investors and founders, which poses a major threat to African tech ventures This year’s edition aims to explore these issues even further, incorporating new insights from startup founders to better understand and address communication gaps that impact the African tech ecosystem. By participating in this survey, you’ll contribute valuable insights that will shape the future of investor relations and support the growth of African startups The survey is now open and will close on Friday, 6th September 2024 at 23:59 pm UK time. It takes just 6 minutes to complete and is fully confidential. Make your voice heard. Click here to participate. The low-interest rate environment of 2021 provided a catalyst for renewed investment, fuelling a wave of funding for African startups. Notable deals included Tiger Global’s $170 million investment in Flutterwave and SoftBank’s $400 million investment in OPay. These deals played a crucial role in establishing Africa’s presence in the global tech landscape—minting new unicorns. However, the euphoria was short-lived. As global economic conditions deteriorated, these investors faced mounting losses, forcing them to reassess their strategies. The withdrawal of these major players had a significant impact on Africa’s tech ecosystem, as the continent’s overreliance on foreign capital became apparent. While the departure of global investors has presented challenges, Africa’s tech ecosystem is far from stagnant. Local investors and accelerators have stepped up, fostering a more sustainable and resilient environment. Some of them include early-stage VC firm, Launch Africa Ventures, a Pan-African VC fund solving the significant funding gap in seed and pre-Series A investment. The fund has the widest geographical spread, involved in 12% of all equity deals between $100,000 and $10million that happened on the continent since 2021. They sign more than one deal a week on average. Other prominent African firms like Flat6Labs, LoftyInc, and Future Africa are also active in this space. Other investors like Verod-Kepple Africa Ventures, Founders Factory, Norrsken, Plug and Play, Ventures Platform, Musha Ventures, 4DX Ventures and 500 Global participated in at least one $100,000+ deal a month in Africa in 2021–2022. Most of these investors have been active in more than one region in Africa, contributing immensely to the new growth of the ecosystem. Next Wave continues after this ad. Difficulties within Africa’s economic landscape have raised questions about the feasibility of building successful startups on the continent. Iyin Aboyeji, a Nigerian entrepreneur who co-founded two companies valued at over $1 billion before the age of 30, is now a prominent startup investor. He is one of the featured speakers at Moonshot 2024, joining other innovators and industry leaders working on groundbreaking solutions to Africa’s most pressing challenges. Save your seat at Moonshot! Get tickets here The focus has shifted from rapid growth to profitability and long-term value creation. The new Africa-focused investors are the product of a 2021 bet on the continent. This development points to the fact that the success of Africa’s tech ecosystem is a catalyst for future development and win-win for everyone. As Africa continues to develop its talent pool, improve its infrastructure, and address regulatory challenges, it is well-positioned to become a major player in the global tech landscape. The future of the continent’s tech ecosystem will depend on its ability to attract and retain top talent, develop a robust exit market, and foster a supportive regulatory environment. Joseph Olaoluwa Senior Reporter, TechCabal Thank you for reading this far. Feel free to email joseph.olaoluwa[at]bigcabal.com, with your thoughts about this edition of NextWave. Or just click reply to share your thoughts and feedback. We’d love to hear from you Psst! Down here! Thanks for reading today’s Next Wave. Please share. Or subscribe if someone
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- August 26 2024
TechCabal Daily – Stranded in Space
In partnership with Lire en Français اقرأ هذا باللغة العربية Happy Salary Week If you’re still twiddling your thumbs about attending Moonshot 2024, here’s one review from a 2023 guest. This year’s Moonshot promises more content tracks, sessions, mixers, and the most audacious thinkers, doers, and investors in African tech, working on everything from fintech to commerce, renewable energy, climate change, tech policy, AI, telco, cloud and more. Save a seat at Moonshot 2024. Get tickets here. Safaricom asks Kenya to limit Starlink’s operations Stranded astronauts will be rescued by February 2025 Japan to up its Nigerian investments Africa’s data privacy concerns The World Wide Web3 Events Internet Safaricom asks Kenya to limit Starlink’s operations Image source: Safaricom Kenya’s leading telecommunications company, Safaricom, has expressed strong opposition to the Communications Authority of Kenya (CA) granting independent licenses to satellite internet providers like Starlink. In a letter to the regulator, Safaricom outlined its concerns about the potential risks and negative consequences of such a move. The company argued that allowing satellite providers to operate independently could lead to illegal service provision, harmful interference with existing mobile networks, and compromised national security. Already, Starlink’s appeal is growing among users in Kenya. The ISO offers cheaper subscription plans and stronger internet connectivity to these users. The average Kenyan spends about $12-15 monthly on internet subscriptions. That amount will get them 27 GB worth of data on the Airtel network and 17GB on Safaricom. However, Starlink offers a 50GB bundle for $10. Starlink has already increased its user count tenfold this year alone. The ISP’s hardware discount and $15 monthly kit rental also puts it in pole position to acquire more customers. This growing popularity has raised concerns for Safaricom, which has invested heavily in its existing network infrastructure. To mitigate these risks, Safaricom proposed that satellite providers should only be allowed to operate in Kenya under the umbrella of existing local licensees, such as itself. This approach, according to the company, would ensure better regulation, prevent harmful interference, and protect the interests of both local operators and consumers. Safaricom’s opposition to independent satellite internet licenses highlights the ongoing debate about the future of internet access in Kenya. The company’s concerns about potential risks and negative consequences will likely influence the CA’s decision on whether to grant such licenses. 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. Global News Stranded astronauts will return next year on SpaceX Image source: NASA If you have ever been stuck in an elevator, then you may be able to sympathise with veteran NASA astronauts Sunita Williams and Barry Wilmore who have been stuck in space for 2 months. While both astronauts have previously completed long-duration stays in space, their latest foray didn’t go as planned. Both astronauts blasted off Earth in Boeing’s new Starliner spacecraft on June 5 for a test flight. However, technical issues—helium leaks and failure of some thrusters—on the spacecraft turned an eight-day trip into a 2-month one. Williams and Wilmore eventually reached the International Space Station (ISS). However, the duo will have to wait an additional seven months on the ISS when the rival SpaceX Crew Dragon spacecraft comes to ferry them home in February 2025. Before the flight—which was crucial to determine if the spacecraft would be used for routine flights—engineers at NASA and Boeing spent months trying to figure out and fix issues with the Starliner. The Starliner’s launch had been postponed multiple times for years due to technical challenges encountered during its development. The latest technical glitch of the Starliner adds to a list of engineering issues Boeing has had to deal with this year alone. In March, flight controls of a United Airlines 737 jammed as the plane landed. A LATAM 787 Dreamliner flight from Australia to New Zealand plunged mid-air, injuring 50 passengers, who were thrown from their seats and into the plane’s ceiling. As Boeing looks to fix the Starliner, it can pick up lessons from rival SpaceX which has sent nine crewed flights to space for NASA. 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. Economy Japan looks to invest in Nigerian startups Image source: Techonomy Nigerian tech startups are attracting foreign investors, particularly from Japan, due to three key factors: a young, tech-savvy population, massive market potential with over 200 million people, and its nascent startup ecosystem providing room for technology innovation and business expansion. In the last 5 years, Nigerian startups have received over $4 billion. Japan, a long-time investor in Africa through the Tokyo International Conference on African Development (TICAD) initiative, is interested in these Nigerian startups. This move will strengthen business and economic ties with Nigeria, according to Foreign Affairs Minister Kamikawa Yoko. Unlike Chinese companies that prefer to expand into Nigeria, Japanese involvement in Nigeria’s tech ecosystem has primarily been through corporate venture capital (CVC), with companies like Toyota Tsusho and Mitsubishi Corporation leading the way. Additionally, Japanese VC firms such as Verod Kepple have successfully invested in Nigerian startups. In 2022 alone, Japan invested $726 million in Africa. Its investment strategy in Nigeria focuses on providing patient capital and enhancing the existing bilateral trade relationship. Following this announcement, Nigeria will likely be seeing more capital inflow from Japan into the country. Chinese companies too have shown interest in investing in Nigeria. Paystack Virtual Terminal is now live in more countries Paystack Virtual Terminalhelps businesses accept secure, in-person payments with real-time WhatsApp confirmations and ZERO hardware costs. Enjoy multiple in-person payment channels, easy end-of-day reconciliation, and more. Learn more on the Paystack blog → Insights Africa’s data privacy
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- August 24 2024
How Yinka went from fashion to CX lead at Flutterwave
This creator had three big career changes! 24 || August || 2024 View in Browser Brought to you by Issue #71 From Fashion To Tech Share this newsletter Greetings ET people Our techie today, Adeyinka, knows a lot about fashion so here’s one fashion joke to get a good laugh before we get rolling. While writing this newsletter, we discovered she had tried at least three things before she found tech; it’s like trying different clothes on before finding the right fit. Adeyinka studied computer science, left it and joined fashion school. When that didn’t really click, Yinka reluctantly got into tech after a friend recommended her for a customer success role. Today, she says she still has her eyes on fashion, but right now, she is finding fulfillment in the role she plays in the tech ecosystem. This is the story of Adeyinka Ajenifuja and how she transitioned from fashion to tech. Faith Omoniyi & Emmanuel Nwosu Once upon a time Adeyinka used to be a wide-eyed computer science student during her undergraduate days at Lagos State University. She always wanted to do something in information technology, but a hectic university system ruined her chances. Image source: Faith Omoniyi/TechCabal. Like many tech students in public universities, she learned how to code using pen and paper. There was little or no practicality about anything she had learnt about computers, science, or the combination of the two; and slowly, but surely enough, the wide-eyed student began to lose her wonder. After graduating, Adeyinka decided she was going to start a business. She was not cut out for the daily 9–5 bustle. So, she gathered the strength only a Lagos babe could muster and started a small business selling sunshades for people who wanted to get their LadiPoe Big Energy groove on. Business thrived, and she started eyeing fashion. She jumped ships from sunglasses to selling clothes, shoes, and other accessories she bought from the UK to Nigerians and helped clients change their wardrobes. Business was good for another year before she stopped. After that, she decided again to dip all her fingers and toes into fashion design. She got into Betti-O School of Fashion, where she was selected as one of the top 40 finalists out of 200 interviewees. If you’ve been keeping count, this is big change number 3. GIF source: Tenor She did well in fashion school.Adeyinka graduated in the top 5, and won an industrial machine. With it, she designed for a while; but she says she enjoyed sketching outfit designs more than actually sewing. During the interview, we thought this was the tech universe calling out to her. We knew this was where the next big change happened. But we would have thought Adeyinka would get into design, she jumped onto a different path. *Newsletter continues after break Entering tech by chance? “I stumbled into tech. I only wanted to get the exposure and resign after six months. Six years later, I’m still kicking.” A friend who worked in HR at KPMG referred Adeyinka to her first tech job—a customer success associate role at Flutterwave; this was in 2018. She was reluctant to take up the offer because she knew nothing about fintech. There was also her lack of experience in tech generally. Adeyinka’s CV at that time only boasted of her Betti-O fashion school certificate and maybe her three years of running different businesses. She found it absurd to make a jump like that. After much pleading from her friend, she did it anyway. No surprise that her selling point during the interview was running a fashion business, which—if you’re familiar with how fashion people and tailors are dragged in Nigeria—you’ll understand the level of people skills and customer relationship management efforts you had to put in to not mistakenly find yourself in trouble over little misunderstandings with customers. Adeyinka’s friend to her in 2018. Image source: YungNollywood Her experience managing people in her fashion business endeared her to interviewers, and she says this has helped her become a superstar customer success specialist in her career. When she wanted to leave her first job, the company pleaded with her to stay, and even offered to bump her salary by 4x. But Adeyinka left anyway. Adeyinka leaving in style after securing her bag. Image source: YungNollywood Today, she still works in fintech, finds time to mentor newbies on ADPList, and creates skincare content on her Instagram page for anybody who’d watch. When we asked her, she said the hustle is propelling her more than anything. *Newsletter continues after ad break Attend Moonshot 2024! This year’s Moonshot promises more content tracks, sessions, mixers, and the most audacious thinkers, doers, and investors in African tech, working on everything from fintech to commerce, renewable energy, climate change, tech policy, AI, telco, cloud and more. Save a seat at Moonshot 2024. Get tickets here. Yinka’s dream “There is money in tech; we haven’t even scratched the surface yet.” Adeyinka’s message to all those doubting “tech money” is that there is more grass to touch. One of the highlights of her career was interviewing for an international role that would’ve paid her €5,000 monthly in 2022. Though she didn’t get the role (because she was over-qualified), it opened her eyes to the endless financial possibilities in tech. Adeyinka’s dream is to become a customer success manager or a big tech COO by next year. (We said a big AMEN to this.) Adeyinka’s advice to you. Image source: YungNollywood Albeit, she acknowledges that like most things in life, tech money isn’t instant reward. To become great at her job, she’s had to learn a lot about taking ownership, doing analytics, CRM (though Salesforce still gives her the heebie-jeebies), dispute resolution, and de-escalating customer tension—which is the hardest part of her job as she works in fintech. Customer success people essentially put out fires for businesses; yet there are only a few representations, communities, or resources for people who want to practice. However,
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- August 23 2024
Exclusive: Safaricom wants satellite ISPs like Starlink blocked
Safaricom, Kenya’s biggest telco, has asked the Communications Authority (CA) to block satellite internet providers with operations in other countries. The move could lock out Elon Musk-owned Starlink which has seen increased adoption due to promotions and cheaper monthly plans. “We propose that the CA instead consider mandating that satellite service providers to only operate in Kenya subject to such providers establishing agreement with an existing local licensee,” Safaricom said in a memo seen by TechCabal. In the July 15 memo, Safaricom asked the regulator to assess the risks of allowing satellite internet providers to operate without an agreement with local companies. Safaricom did not immediately respond to a request for comments. “Satellite service providers should therefore not be granted a license directly/independently but rather only permitted to operate under the license rights of the local licensee.” The telco said allowing the satellite ISPs to operate without a physical local presence would make it hard for the government to regulate their operations. CA did not immediately respond to a request for comments. Since its launch in 2023, Starlink has relied on third parties and resellers to distribute their hardware and connect users, an issue Safaricom raised in their memo to CA. Through discounts on its hardware and the introduction of a cheaper $10 monthly plan, data from CA shows that Starlink users grew tenfold in Q1 2024. On August 21, Starlink introduced a $15 monthly kit rental plan for users who cannot afford $350 to purchase the hardware. Starlink’s growing popularity has pushed existing local players to increase marketing to retain customers. Safaricom, which has talked about launching a satellite internet service, has a firm grip on the data market, with a 36.7% market share. Starlink did not immediately respond to a request for comments. “Granting a license to an entity that will typically operate in Kenya without having a physical presence in the country (via third-party partners/resellers only. This would mean negligible control for the government to ensure accountability for non-compliance issues,” Safaricom said. Have you got your early-bird tickets to the Moonshot Conference? Click this link to grab ’em and check out our fast-growing list of speakers coming to the conference!
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- August 23 2024
From regulators to banks: stakeholders in Nigeria’s open banking journey
This article was contributed to TechCabal by Adedeji Olowe and Ope Adeoye Nigeria began its open banking journey in 2017, spearheaded by a coalition of industry stakeholders advocating for greater financial innovation and inclusion. This mirrored the UK’s pioneering efforts under the General Data Protection Regulation) GDPR and the Second Payment Services Directive (PSD2), which sought to establish open banking. In the UK, open banking was initially used as a regulatory tool by the Competition and Markets Authority (CMA) to create a level playing field among the country’s nine largest banks. While open banking served as a remediation tool in the UK, it had the potential to be transformational in Nigeria. Recognising this, Adedeji Olowe and a group of industry experts founded Open Banking Nigeria on June 1, 2017, marking the beginning of open banking in Africa. Although this journey has taken seven years instead of the anticipated three, we are now approaching its completion. Along the way, many have asked, “Who are the stakeholders of Open Banking Nigeria?” and some are unclear on what open banking truly entails. Open banking is an innovation with the potential to transform any region where it’s adopted. However, it comes with its complexities. If you ask twenty experts to define open banking, you’ll likely get twenty different answers. This diversity of perspectives is expected because open banking addresses different problems for different people. Open banking in Nigeria marks a new era of innovation, empowering customers to grant fintechs and financial institutions access to their information. When the phrase “digital payment” is mentioned, many Nigerians often think “we have seen enough.” Yet, despite the advancement in digital payments, Nigeria has only just begun and barely scratched the surface. To the matter at hand, who are the stakeholders driving these changes and making open banking a reality? We’ll dive deep into the different stakeholders, examining their contributions to open banking and understanding their roles and motivations. Regulators Regulation is the backbone of any successful open banking initiative. Even the UK—the pioneers of open banking—had to create a framework to guide its existence. Without regulation, open banking cannot function effectively anywhere. Central Bank of Nigeria (CBN) The Central Bank of Nigeria (CBN) is the apex regulator of the Nigerian banking ecosystem and has been instrumental in shaping open banking in the country. The CBN formulated the open banking regulations and operational guidelines and continues to drive its implementation by collaborating with various stakeholders to standardise practices. While the CBN oversees the Open Banking Registry (OBR), it has delegated the responsibility for its implementation and operationalisation to the Nigeria Inter-Bank Settlement System (NIBSS). National Data Protection Commission (NDPC) The National Data Protection Commission (NDPC) is the primary regulator for data privacy in Nigeria with the Nigeria Data Protection Regulation (NDPR). NDPR is the foundation on which open banking sits. The NDPR underpins the ability of end users to entrust API Consumers (AC) to have access to their data. They govern how data of every Nigerian is handled, shared and protected. And without them, open banking is bound to fall short and entwined with a ton of regulatory mishaps. Securities and Exchange Commission (SEC) The Securities and Exchange Commission (SEC) is the regulatory body for the capital market in Nigeria and it provides guidance for open finance which may include the use of open banking as part of innovative transformation of the capital market. In the near future, SEC hopes to use open banking to champion open finance. Supported by influential figures such as Aigboje Aig-Imoukhuede and the late Herbert Wigwe alongside other prominent industry leaders, the SEC is diligently working to craft regulations and policies that will pave the way for a new era of open finance. Nigeria Interbank Settlement System (NIBSS) The Nigerian Interbank Settlement System (NIBSS) is the shared services created by the CBN and commercial banks. It integrates all banks and CBN-regulated fintechs. NIBSS is a critical driver of open banking in Nigeria as they are mandated by the CBN to operate the Open Banking Registry (OBR) and the Open Banking Consent Management System (OBCMS) on behalf of the industry. OBCMS is a FAPI grade technology platform that end users use to provide consent to AC via their banks. The OBCMS is operated by NIBSS on behalf of the CBN and the Nigerian banks and uses the BVN to verify end users. OBN ecosystem facilitators The OBN ecosystem brings together the key forces behind Nigeria’s open banking revolution. From regulators and traditional banks to fintech innovators and end users. Open Banking Nigeria The Open Technology Foundation, better known as the Open Banking Nigeria (OBN), is the foremost entity for open banking in Nigeria. Founded in 2017, it is a non-profit organisation with membership from leading banks, fintechs, and global consultancy in Nigeria. The team kickstarted the open banking revolution in Nigeria and has worked with the CBN and other stakeholders to formulate operational guidelines. OBN is also responsible for driving industry advocacy, developing the API standards, documenting these standards, and developing an open source API gateway for the financial industry in Nigeria.Often mistaken for regulators due to their name and sometimes seen as a company because of their polished presentation. OBN actually represents a diverse network. It includes major fintechs across Africa and prominent Nigerian banks. To name just a few: Sterling Bank, Fidelity Bank, FCMB, Sparkle Bank, KPMG, PwC, EY, Paystack, Flutterwave, OnePipe, Lendsqr, TeamApt and a host of others. Traditional Banks (API Providers) Traditional banks are pivotal players in the open banking ecosystem, often referred to as open banking API providers. They supply APIs that enable other financial institutions to access and integrate data. As regulated entities, these API Providers (APs) facilitate the flow of data and services to another participant. A provider is mostly a bank or any other entity whose customers share their data or grant access to their accounts to other participants. Banks are vying to take the lead in shaping the future of open banking across Africa.
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