👨🏿🚀TechCabal Daily – Flutterwave appoints new board chair
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF What was it like to build a tech startup in 2023? What will it take to succeed in 2024? The founders of Bamboo, SendStack, and ShopFawl have the answers! Join them in our International Women’s Day Vodcast, “Hustle & Heart,” live on our YouTube Channel. Watch it here! In today’s edition Quick Fire with Koffi Kelvin Here’s why your internet was down yesterday Binance promises to cooperate with Nigerian authorities South Africa to approve 60 crypto licences Flutterwave appoints more executives Funding Tracker The World Wide Web3 Job Openings Quick Fire Andela’s Koffi Kelvin breaks down Quality Assurance Koffi Kelvin is a QA Engineer at GitHub and an Andela technologist. He is passionate about learning and recently graduated from an 11-month leadership course. Koffi is an Andela community champion, supporting and mentoring other community members across the globe, as well as organizing region-wide events for Andela. Outside of tech, Koffi is interested in music, art, and African culture. Explain your job to a five-year-old Imagine you built the world’s most incredible treehouse ever! It has slides, secret tunnels, and a throne made from your softest teddy bear. But before you invite all your friends over, wouldn’t you want to ensure it’s perfect? That’s where a QA engineer comes in, like the ultimate fort inspector with a magnifying glass! We’re the ones who crawl through the tunnels, bounce on the pillows, and push all the buttons (carefully, of course!) to see if anything is wonky or doesn’t work quite right. We might find a slide that topples over too easily or a tunnel too small for even the tiniest teddy bear. We’ll then tell the treehouse builders (the programmers) about these funny mishaps so they can fix them and make the treehouse even more epic! Can you share a memorable experience where your attention to detail in QA uncovered a critical issue in a project? Off the top of my head, I discovered a critical OS issue when I was at Hewlett-Packard. I was analysing data, and it revealed a bug; I would upload a particular file to an RGB keyboard app, which then caused the entire operating system to crash. This was precarious because, of course, apps require operating systems to run. We were building the operating system alongside the required apps; one needed the other to perform efficiently. It was a close shave! Your background also showcases a transition from hands-on QA engineering to customer support. What sparked this shift in focus, and what excites you most about the support role? QA is a very customer-centric role where, in some instances, during user acceptance testing (UAT), one works with the actual application users to address any issues they might have with the product, making customer support a function within QA. Hence, the transition was as seamless as running from walking. What skills would you say have been critical to your career growth and trajectory? Curiosity and tenacity. I remain curious and interested in all functions within and around my work. I’m constantly researching, reading, and learning. This exposes me to as many recent and emerging technologies as possible, which helps keep me sharp and up-to-date. I tend to seek out content from some notable thought leaders within QA like James Bach, who is christened “The father of Agile testing” through his blog and a few others like. I gravitate towards the daunting and challenging tasks many people avoid, which has ensured I’ve learned the most within the team. I welcome a challenge, as it makes me learn the most or fail spectacularly. And when you fail, you learn; you never make the same mistake twice. You’ve been a digital business mentor for two years now. What would you say is the most rewarding thing about mentoring? At this point in my career, I would love to give back to the Andela community as much as possible because I realise how privileged I have been in my career journey. This is why I am drawn to mentoring and supporting other technologists. The Andela community is a network of global technologists, and I regularly speak to people worldwide. The most rewarding part is helping others be successful in specific fields using tools that improve the quality, efficiency, and even the quantity of their output. I guide new members through the Andela talent community landscape, offering support and advice on everything from how to navigate the job engagement process, to questions about tax and, of course, technology and skills guidance. What are some of your hobbies or passions that fuel your creativity and energy outside of work? I always make time for physical activity, regularly playing at the local rugby club and swimming. Recently, I’ve embraced farming, starting with building two beehives, planting some fruit trees (mango and apple), and growing hot chilies. I love being outdoors as much as possible. Finally, what lessons have you learned from your experiences in QA that have had the most significant impact on your professional growth and development? Developing my teamwork and collaboration skills during our day-to-day QA operations has impacted my leadership. Most recently, I took an 11-month leadership development program led by renowned scholars including Dr Phidel Baraza (Ph.D.) and Professor Emmanuel Bellon, where I was recognized as one of the course’s top performers. When I first began leadership training, I was taught to lead from the front and demonstrate/explain how my team should perform. But working in QA, I’ve learned how to lead from behind when needed, encouraging and trusting my team to have autonomy over their roles. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Telecoms Subsea cable cuts disrupt internet service in Africa If you experienced bad internet service yesterday, we are here to let you know that it’s not the fault of your network provider, it might just be
Read MoreMajor fibre cut takes banks in Nigeria and South Africa offline
MainOne, a major data provider for most Nigerian banks, suffered a major fibre cut in Ghana that has knocked many major Nigerian banks offline, according to internal communication sent to bank staff and seen by TechCabal. As a result, customers of major Nigerian banks cannot access their banking apps or use any USSD service. “A technical team is actively working on a solution,” someone familiar with MainOne’s business told TechCabal. A spokesperson for TechCabal declined to comment on the situation. Thursday’s internet outage extends beyond Nigeria, with South African internet users also experiencing slow speeds and unresponsive internet. According to news24, Vodacom confirmed that multiple subsea cable failures between South Africa and Europe were impacting several network providers. *This is a developing story.
Read MoreFlutterwave appoints former CBN director as board chair
Flutterwave, Africa’s most valuable startup, has appointed Dipo Fatokun, a former director at the Central Bank of Nigeria (CBN), as its new board chairman, as part of its effort to uphold higher regulatory, compliance, and governance standards. Fatokun has extensive experience as a board member and board chair, having served on more than five boards in the last decade. He is the chair of United Capital’s audit and governance board. During his time at CBN, he led initiatives such as the Cashless Nigeria Initiative, the Bank Verification Number (BVN) project, and the Treasury Single Account (TSA) for the Federal Government. He also led efforts to automate foreign currency payments for the Central Bank’s internal and external customers. The fintech has also appointed Tosin Faniro-Dada, a partner at Breega, an early-stage VC fund in Europe and Africa, as an independent non-executive director. “As a company, we’ve gone through different organisational changes in our growth journey, but one thing remains steadfast – our commitment to maintaining the highest regulatory and operational standards,” said Olugbenga Agboola, the CEO and Founder of Flutterwave. Their appointments come three months after Flutterwave appointed five new executives across its risk, compliance, and expansion departments. Two weeks ago, Flutterwave also added a new board member, Nigerian architect Olajumoke Adenowo, as part of its efforts to drive its international expansion strategy. “The company plays a vital role in the fintech ecosystem across Africa. I’m looking forward to supporting the company’s goal of being a model fintech company that advances payment innovations while upholding the highest regulatory and compliance standards,” Fatokun said in a statement.
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Breaking: SA issues first-ever crypto licences to 59 firms
South Africa’s Financial Sector Conduct Authority (FSCA) has approved operating licences for 59 cryptocurrency firms as of March 12, 2024. This was stated by a representative of the FSCA at the ongoing FSCA Industry Conference in Johannesburg. According to the regulator, 355 applications for crypto licenses were received, 59 of which were approved, while 262 are still being vetted. Some of the business models of approved firms include advisory services, exchanges, payment gateways, crypto-to-crypto and crypto-to-fiat-conversion, crypto asset arbitrage, tokenisation, provision of index-based products, and wallet services. “Any entity that did not apply for a license and continues activities will be investigated and there will be consequences for such actions,” said Felicity Mabaso, the divisional executive for licensing at the FSCA. Image source: FSCA The move represents South Africa’s continuing relaxation of the crypto regulatory environment. The earliest step in liberalising South Africa’s crypto regulatory landscape came in November 2018 when the SARB, in conjunction with the FSCA, South African Revenue Services (SARS), and the FIC established the Crypto Assets Regulatory Working Group. In July 2021, the working group published a position paper [pdf] with recommendations for a revised South African policy, legal, and regulatory position on crypto assets. In August 2022, SARB issued guidelines for how financial institutions including banks could service crypto clients. The apex bank explicitly advised the institutions against refusing to serve crypto clients. This was followed by the FSCA declaring crypto assets as financial products in October 2022, meaning they would fall within the regulatory jurisdiction of the FSCA which then opened applications for licences in June 2023. Furthermore, according to the FSCA, the licensed entities will be subject to ongoing supervision after licensing, while investigations into people conducting crypto-related financial services without authorisation will begin.
Read MoreNigeria, Binance in talks to patch up relations after arrests
Binance, the world’s largest crypto exchange, wants to patch its relationship with Nigerian authorities following recent regulatory tensions. In a statement released on Thursday, Binance emphasized its commitment to compliance and collaboration with Nigerian authorities. The exchange detailed its extensive cooperation with Nigerian law enforcement, claiming to have responded to over 626 information requests from Nigerian authorities since 2020, with an average response time of less than 38 hours. This information reportedly assisted investigations into financial crimes such as scams, fraud, and money laundering. Furthermore, Binance claimed it conducted dedicated training sessions for officials of Nigeria’s Economic and Financial Crimes Commission (EFCC) in August 2023, focusing on cryptocurrency investigations and internal operations. These initiatives, demonstrate Binance’s commitment to fostering collaboration with Nigerian authorities. The company also claims it has been cooperating with the Nigerian Financial Intelligence Unit (NFIU) and the Nigeria Police Force to discuss continuous training initiatives and operational cooperation. The statement comes against a backdrop of increased scrutiny towards cryptocurrencies by the Nigerian government. Last month, the Nigerian government detained two Binance executives—Tigran Gambrayan, an American citizen and former US federal agent, and Nadeem Anjarwalla, Binance’s Kenya-based regional manager for Africa—who had flown into the country to resolve the exchange’s banned website. The arrests stem from the Nigerian government’s crackdown on forex speculation, triggered by the naira’s volatility after the removal of artificial exchange rate controls. Despite not being a top market for the exchange, Binance acknowledged Nigeria’s burgeoning crypto adoption, ranking second globally according to Chainalysis.
Read MoreAccess Corporation names Aigboje Imoukhuede Board Chairman
Access Corporation, the parent company of Nigeria’s biggest bank by assets, has appointed Aigboje Imoukhuede, a pioneering CEO of the bank, as the Non-Executive Chairman. Imoukhuede returns to the bank he retired a decade ago; exactly one month after the death of Herbert Wigwe, his friend, business partner, and former Group Chief Executive Officer (GCEO) of the bank. He will replace Abubakar Jimoh, the erstwhile board chairman. According to a statement by the bank, Imoukhede’s appointment was a unanimous decision welcomed by the board to steer the bank in the right direction. The erstwhile chairman, Jimoh, will remain on the bank’s board, serving as an Independent Non-Executive Director. “Mr Aig-Imoukhuede’s appointment to the Board and subsequent election as Chairman is a landmark development for Access Holdings,” said Jimoh. “All our board members are excited about our future.” Reacting to the appointment, Imoukhuede said he is “thrilled to be back in active service to the Access Group ecosystem.” “I am confident that working with our directors, our exceptional team of executives and our best-in-class banking and finance professionals. We will deliver outstanding value to shareholders,” he added. Imoukhuede is no stranger to the banking world, and Access Bank Holdings, boasting 22 years of industry experience. He served as the GCEO of Access Bank for 11 years, until Wigwe succeeded him in 2013. Under Aig-Imoukuede’s leadership, Access Bank became a tier-1 bank, growing its presence in over nine countries and its customer base to over six million. The bank boasted an asset base worth $12 million under Imoukhuede’s tenure that began in 2002. As Board Chairman, he promised all customers, employees, and stakeholders a promising future under his leadership. He promised to take the group to a new chapter of sustainable success. Today, the bank’s shares grew 2.45% at the end of trading to ₦23 per share, signifying a silver lining for the shares that are beginning to peak after it closed last month at ₦19.15. Imoukhuede co-founded the Tengen Family Office Limited which oversees a significant portfolio of investments and business in banking, finance, real estate, technology and energy. He also owns Coronation Group Limited, an investment holding and trading company for a group of companies that provide a wide range of financial services.
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👨🏿🚀TechCabal Daily – Telkom loses 800,000 subscribers
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning If you’re often missing TC Daily in your inbox, check your Promotions folder and move any edition of TC Daily from “Promotions” to your “Main” or “Primary” folder and TC Daily will always come to you. In today’s edition Nigeria’s space plan is on hold Airtel Money eyes IPO Telkom loses 800,000 subscribers Interswitch merges with M-Kudi The World Wide Web3 Opportunities Space Nigeria’s satellite launch plans put on hold While Nigeria’s space ambitions face a temporary setback, its achievements shouldn’t be forgotten. Launched in 2003, NigeriaSat-1, Nigeria’s first earth observation satellite supported disaster responses in Argentina, Paraguay, and West Africa before its decommissioning in 2014. Its impact also extended to vital mapping projects in the Amazon rainforest and Vietnam’s coastlines. Nigeria’s space programme has a history of reaching out a hand from beyond Earth’s atmosphere. However, ambitious plans to launch a Nigerian astronaut and a domestically-built satellite in 2025 have been put on hold. Why? The Director-General of Nigeria’s National Space Research and Development Agency (NASRDA), Dr Halilu Shaba, disclosed that the agency’s ambitious plan to launch a satellite by 2025 hit a financial roadblock. Additionally, launching an astronaut into space is currently deemed economically unfeasible. NASRDA anticipates it may take up to five years to secure a launch slot, making immediate astronaut training impractical. Despite the delay, NASRDA maintains its 25-year plan to send a Nigerian astronaut into space and launch an indigenous satellite from Nigeria. The agency projects significant growth potential for Nigeria’s space industry, aiming for a valuation of up to $1 billion. Zoom out: Meanwhile,NigeriaSat-2, another earth observation satellite launched in 2011, remains functional, providing high-resolution imaging for various purposes. NASRDA utilised it for estimating population and partnered with China to monitor earth tremors in Nigeria and across Africa. Launch your tech career with Moniepoint Launch your tech career with paid mentorship from fintech industry leaders and potential full-time employment. Apply now! Telecoms Airtel Money eyes IPO African mobile mobile money providers have experienced a surge in investment in recent times. Two years after its $100 million investment in Airtel Money, Mastercard acquired a minor stake in MTN’s mobile money arm. In 2021, Airtel hinted at a possible public offering for its fintech arm after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion. Now, Airtel’s mobile money arm might be ready to go public. Yesterday, Bloomberg reported that Airtel Africa is exploring taking its mobile money unit public, with a potential valuation surpassing $4 billion. Talks of the IPO are in preliminary stages and the company may decide against going public. Airtel Money is Airtel Africa’s fastest-growing arm. While Airtel 2023 profits plunged by almost 99%—recording $2 million in profits compared with $523 million it made in 2022—due to currency devaluation, its mobile money arm recorded a 31.8% revenue growth. The telecom currently offers its mobile money services in 14 African countries. In Nigeria, it competes with MTN Momo, while it is dwarfed by competition from Kenya’s mobile money giant, MPesa. Last year, it received approval to allow customers to transact up to KES 500,000 ($3,400) up from KES 300,000 ($2085) which it was previously allowed to do. 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. Telecom Telkom loses 800,000 subscribers Telkom’s race to become Kenyans telecom choice has hit another roadblock. Over the years, the telecom has tried to keep pace with Safaricom—who holds the largest market share with 65 million subscribers—and Airtel with 18 million subscribers, for the largest slice of Kenya’s telecom market. However, financial troubles and a declining user count means that the dream is fast becoming out of reach. Between March 2022 and June 2023, Telkom lost 1.62 million subscribers due to a crackdown on irregularly registered SIM cards. New reports show that Telkom has lost about 800,000 more subscribers due to unpaid leasing fees to American Towers Corporation (ATC). ATC switched off 246 Telkom towers in February after it defaulted on leasing fees. Currently Telkom owes the ATC about KES 7.1 billion ($51.7 million). Both parties entered an agreement two years before. ATC asked Telkom for an initial payment of KES 500 million ($3.6 million) and a monthly payment of KES 150 million ($1.09 million) to reactivate the towers. Telkom said it was unable to pay the debts due to its financial struggles. Telkom’s mobile subscribers count as of December 2023 had dropped to 1.3 million down from 3 million. Before now, Telkom owned and managed its towers before it sold about 723 to the ATC in 2018. At the time, the telecom said the move would “enhance the quality and reliability of our network to benefit our customers.” It now appears the move might have served the wrong purpose. 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 → Fintech Interswitch merges with M-Kudi, eyes PSB licence in Nigeria Africa’s fintech leader, Interswitch, isn’t content with just being a payments powerhouse. After its surprise foray into Nigeria’s telecom sector via a Mobile Virtual Network Operators (MVNO) licence acquisition in May 2023, its ambitions haven’t stopped there. Its latest move involves a merger with mobile money provider M-Kudi, to acquire a Payment service Bank (PSB) licence from Nigeria’s central bank. What’s the deal? Currently, Interswitch focuses on processing payments. The merger with M-Kudi—subject to regulatory approval—will allow Interswitch to create accounts and hold customer deposits. With a PSB license, the company will also be able to receive foreign currencies for its customers and offer agency banking services. Aside getting regulatory approval for the PSB licence, a challenge Interswitch will have to face is convincing Nigerians
Read MoreTelkom Kenya loses 800,000 subscribers following a dispute with tower partner
Telkom Kenya, the country’s third-largest telco, has lost about 800,000 subscribers in the last three months, months after the American Towers Corporation (ATC) switched off its network towers. By December 2023, Telkom’s mobile subscribers had dropped to 1.3 million. ATC switched off 246 Telkom towers due to unpaid leasing fees in February 2023, worsening a disagreement dating back two years. Telkom Kenya’s debt ballooned to KES 7.1 billion ($51.7 million) by October 2023. According to Business Daily, ATC demanded an initial payment of KES 500 million ($3.6 million) and a monthly fee of KES 150 million ($1.09 million) to reactivate the towers but Telkom cited financial constraints preventing it from meeting its debt obligations. Telkom Kenya owned and managed its towers before ATC acquired 723 towers in 2018. At the time, the telco said the move would “enhance the quality and reliability of our network to benefit our customers.” As of June 2023, ATC Kenya had 3,643 towers nationwide, including nine distributed antenna system sites.
Read MoreAirtel Africa eyes IPO for its mobile money arm
Airtel Africa is exploring taking its mobile money unit public, with a potential valuation surpassing $4 billion, according to a new Bloomberg report. Talks of the IPO are in preliminary stages and the company may decide against going public. Airtel Money is Airtel Africa’s fastest-growing arm. While Airtel 2023 profits plunged by almost 99%—recording $2 million in profits compared with $523 million it made in 2022—due to currency devaluation, Airtel mobile money recorded a 31.8% revenue growth. In 2021, Airtel hinted at a possible public offering for its fintech arm within a few years, after receiving investments from TPG—$200 million—and Mastercard—$100 million—valuing the unit at $2.65 billion. The telecom currently offers its mobile money services in 14 African countries. In Nigeria, it competes with MTN Momo, while it is dwarfed by competition from Kenya’s mobile money giant, MPesa. Last year, it received approval to allow customers to transact up to KES 500,000 ($3,400) up from KES 300,000 ($2085) which it was previously allowed to do. Airtel’s planned mobile money IPO follows a trend of investment in African mobile mobile money providers. Two years after its $100 million investment in Airtel Money, Mastercard acquired a minor stake in MTN’s mobile money arm.
Read MoreInterswitch seeks PSB license following merger with M-Kudi
Interswitch, the Visa-backed Nigerian payments giant, has merged with M-Kudi, a mobile money provider, as it seeks a payment service bank (PSB) license from the Central Bank. The merger, subject to regulatory approval, will allow Interswitch to create accounts and hold customer deposits, making it the first time the fintech would offer non-payment services. This follows the fintech’s acquisition of a mobile virtual telecoms licence. “The PSB use case for these companies (payment companies) is the same: to keep some float of their transaction volumes in-house and consolidate on their already established strengths,” an industry insider told TechCabal. “A PSB is the sensible consolidation for them (Interswitch) even if it means they bank themselves,” he added. Interswitch declined to comment on any part of this story. With the PSB licence, Interswitch, which brought in $42 million in revenue for its 2023 fiscal year that ended March 31, will be able to receive foreign currencies for its customers and directly offer agency banking services. Nevertheless, Interswitch has to offer innovative services to convince Nigerians, famous for user inertia, to use its remittance or agency banking services. Interswitch’s tenured presence in Nigeria, where it derives 94% of its revenue, would be useful. With ₦1.1 Trillion in transactions, Firstmonie is the biggest bank-led agency banking service The CBN introduced regulations for payment service banks in 2018 with a remit to increase financial inclusion in rural. Those license holders are to offer 25% of physical activity in “rural areas with a high unbanked population.” Interswitch, which derives most of its revenue from offering services to its banking customers, will have to invest in a nationwide physical network of agents. Mobile money operators are also limited from participating in the revenue-driving segments of other banks, as they cannot directly give out loans, hold foreign currency deposits or participate in foreign exchange transactions except for receiving remittances. These restrictions severely affect the attractiveness of PSBs in Nigeria. Fintech giant Interswitch eyes telecoms market with $1 million MNVO license
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