All eyes on CBN: Will Cardoso dare a mega rate hike to curb galloping inflation?
Olayemi Cardoso, Nigeria’s Central Bank Governor, will chair a monetary policy meeting next week, the first since he was appointed in September 2023. The consensus among three analysts who spoke to TechCabal is that the CBN will elect to raise interest rates in response to worsening inflation. Headline inflation reached a 27-year high of 29.90% in January 2024. Only Zimbabwe (34.8%), Congo (42.5%), Sierra Leone (52.16%), and war-torn Sudan (63.3%) have higher inflation rates. In a meeting in early February, Cardoso said he expects inflation to moderate to 21.4% in 2024 using CBN’s inflation-targeting policy; next week’s MPC meeting will be a stern test of the bank’s ability to match talk with action. Bloomberg analysts expect an interest rate increase of 500 basis points. However, Basil Aba, a co-founder at Veriv Africa and policy analyst, believes the CBN will take a more moderate path and increase rates by 100 basis points instead, from 18.75% to 19.75%. “It is difficult to see how raising rates can make an impact,” Aba argued in an email response. “Nigeria’s inflation is a cost-push inflation buoyed by a steep increase in energy costs across the board, frequent energy scarcity, a nationwide food supply shortage problem, an illiquid power generation value chain, foreign exchange scarcity,” he added. Mayowa Badejo, a partner at 213 Capital, an investment and risk advisory firm, believes inflation will only moderate after the naira begins to strengthen. It’s a nod to Cardoso and the CBN’s other troubles, like a volatile Naira that has resisted every policy thrown at it. The central bank hiked open market rates to 19% from under 12% to mop up excess liquidity and has tweaked the rules for oil companies to repatriate FX from Nigeria, but the Naira’s slide has only worsened this week. Cardoso, who previously dismissed the impact of monetary policy meetings, is under pressure to deliver stability. This week, an aide of President Tinubu urged Cardoso to consider the “political implications” of the CBN’s policies.
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Next Wave: What’s driving M&A deals in Africa?
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 18 February, 2024 The African tech ecosystem is no stranger to Mergers and Acquisitions. South Africa has had great success in closing these kinds of deals and according to Digest Africa, the value of mergers and acquisitions in the African tech ecosystem was $504 million in 2018. 24 out of those 39 deals were in South Africa. Tshepo Magagane, an investment banker, explained that M&A deals are frequent because South Africa has mature companies that are now rechanneling funds into the start-up tech scene. “Capital markets and our banking system are also playing a supportive role,” Magagane said. Merger and Acquisition deals between 2019 and 2023. Chart by Stephen Agwaibor, TC Insights As the funding for African startups declined to a two year low by 2023, a number of Nigerian startups announced more M&As, seeking more lifelines for their tech-led businesses. A data tracker said the market for acquisitions dropped to 26 deals in November last year, however Statista predicts that the transaction value in the Mergers and Acquisitions market for Nigeria is projected to reach $198.50 million in 2024. In the not so distant past, international companies who wanted to make inroads into Africa were responsible for M&A activity. Stripe’s gateway into Nigeria was via the Paystack exit which cost $200 million, which it used to expand into Africa. Visa, a payment behemoth, also made its move into Nigeria by acquiring a minority stake in Interswitch, a Nigerian digital payments firm, which helped boost its valuation to unicorn status. Partner Content: Read: Announcing the $5m Core Africa Innovation Fund which is empowering local Web3 builders here. Between last year and this year, more M&A activities among local Nigerian startups started to make waves in the ecosystem. Notable among the deals include marriages between WhoGoHost, a Nigerian cloud infrastructure company and SendChamp, a cloud communications startup. The acquisition, which combined cash and equity, was an acquihire, requiring both founders of SendChamp, Goodness Kayode and Damilola Olotu to assume new roles at WhoGoHost as Chief Product Officer, and Chief Technology Officer respectively. Others included Risevest acquiring Chaka, distressed PayDay acquired by Bitmama and more recently Carbon acquiring Vella Finance. Apart from PayDay’s acquisition most of the M&A deals have one recurring theme through them; the actual figures were not made public. As an aside, the financial implications are important for record-keeping and to evaluate the growth of the ecosystem. Take this as a worthy digression anyway. Next Wave continues after this ad. Talent PEO Africa launches in Kenya, offering comprehensive HR solutions for businesses. From EOR services to recruitment and HR consulting, we simplify operations for seamless growth. Partner with us to tap into Kenya’s talent, navigate regulations, and achieve success. Contact us at www.talentpeo.com or kenya@talentpeo.com. There are many arguments for tech startups opting for M&As. While the general theme that accompanies them are usually premised under opportunities to maximise economies of scale and foster cross-country expansions, there are other unexpressed motivations. In this article, Victor Basta, co-Head at DAI Magister argues that some companies do not consolidate simply to save themselves from shutting down. He told TechCabal that some consolidations may be done in the middle of a funding glut with heavy concerns on raising newer rounds. As far as Mergers and Acquisitions go, the best case scenario is a consolidation of two evenly matched tech startups who combine to deliver outsized returns to the market and become a market leader while at it. The idea of becoming a market leader can obliterate the competition—quite a number of startups do the same thing; however, if the merger brings more value to consumers, why not? From the outside in, the mergers of Chaka and Rise and most recently Carbon and Vella Finance looks like a real attempt at improving the worlds of wealth management and digital lending respectively. As Ngozi Dozie notes in his substack, the Carbon and Vella marriage was a perfect match. This is not Carbon’s first time making an acquisition. It acquired Amplify, a payments company for an undisclosed fee in 2019, relying on its architecture for success in the payments business. This new marriage with Vella Finance is expected to continue Carbon’s ambitions into expanding more financial services to more customers. Next Wave continues after this ad. TechCabal is taking Moonshot Conversations to Nairobi! We’re excited to invite you to our inaugural edition of Moonshot Conversations 2024 in Nairobi, Kenya this Friday, February 16th. Join us for an evening of discussion around all things AI, with cool demos from innovators doing interesting stuff with AI. It promises to be an evening filled with networking opportunities and fun at our post-event mixer. If you are an AI expert, enthusiast, regulator, or innovator within Kenya’s tech ecosystem, this is an experience not to be missed. Hurry now and register by clicking on the link below, we cannot wait to welcome you. And more! It will be remembered as the year that reset the trajectory (hopefully) for the better. Register now! However, with great and exciting news, comes some caveats. Sheharyar Khan, a finance expert, argues on LinkedIn that the success of an M&A is a futuristic expectation of three years. According to him, “If a business is able to retain the majority of its customers three years after an acquisition, this is a positive indicator that the acquisition was successful.” This means that a long wait lies ahead of us, especially with recent acquisitions. However, founders can score bonus points if they acquire related businesses. Nonetheless, only time will tell. Till then, let’s be optimistic. Joseph Olaoluwa Senior Reporter, TechCabal Thank you for reading this
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👨🏿🚀TechCabal Daily – Partech has $300 million to invest
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning Our friends at Flourish Ventures are surveying VC-backed founders in Egypt, Kenya, and Nigeria to find the unique challenges African tech founders face and raise awareness and support for their needs. They want to hear from founders and create a report that will help investors and ecosystem partners provide better support and resources for founders across the continent. If you’re a VC-backed founder in Egypt, Kenya, and Nigeria, please take a couple of minutes to complete this brief survey. All survey respondents will remain anonymous, and Flourish will share a comprehensive report later this year. In today’s edition Partech has $300 million to share Mara takes a break Kenya to ban secondhand EV imports Showmax continues to beat Netflix Nigeria to connect all its local governments to the internet The World Wide Web3 Opportunities Funding Partech closes $300 million in its Partech Africa II fund African startups raised $3.2 billion in 2023, the lowest funding since 2020’s $2.1 billion, and a 36% drop from 2022’s $5 billion. As investors tighten their belts and brace for a potentially tough first half of 2024, global VC firm, Partech Africa, has sent a strong signal of confidence by closing its second Africa-focused fund, “Partech II,” at $300 million. The amount doubles the size of its first fund, which closed at $143 million in 2018. Partech Africa II reached its final close of $300 million, a year after securing its first close at $263 million. The investment: According to Cyril Collon, general partner at Partech, nearly all investors like the International Finance Corporation (IFC) and the European Investment Bank (EIB) from their first fund have reinvested, with some even doubling their commitment. Additionally, the new funding comes from US and Middle East pension funds, including new “strategic partners” like Africa Reinsurance Corporation and Dubai Future District Fund (DFDF). Partech II will target investments in various sectors, focusing on seed to Series C rounds with ticket sizes ranging from $1 million to $15 million. Partech’s previous track record includes investments in African companies like Wave, Yoco, and Vendease. With its new fund, the firm has already invested in three promising startups, including Revio, a South African payment solution provider, and two other undisclosed startups in Egypt and Senegal. Zoom out: Building on its established presence in Dakar, Nairobi, and Dubai, Partech will further strengthen its commitment to African entrepreneurs by opening a new office in Lagos, a hub for a third of its portfolio companies. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Crypto Mara takes a break Nigerian crypto wallet provider Mara has told customers that it paused UK operations in November 2023 due to new regulations. What regulations? CEOChiNnandi told TechCabal that Mara violated FCA rules of “providing or promoting financial services or products in the UK without permission.” FCA’s list didn’t include Mara or any of its known service providers. Mara, however, didn’t specify how its marketing activities became non-compliant with the regulations. The startup claims it’s working to “align with the new changes in policy”. Mara? Launched in 2021 by former Nvidia, Founders Bank, and Rappi executives, Mara primarily targeted Nigerian and Kenyan users, allowing them to buy, sell, and manage crypto and fiat currencies within its wallet platform. The startup with over 4 million users secured $23 million in funding from prominent investors like Coinbase and FTX. Following the November shutdown, Mara instructed users to move their funds to traditional bank accounts as it undergoes an “upgrade”. It has, however, not provided a timeline for resuming services. Mara’s recent pause adds to a string of setbacks it faced in the past year. The year began with layoffs in its marketing team and nearly its entire non-profit arm. Soon after, Mara Foundation also shut down Mara Academy, its crypto education platform launched in partnership with Circle, the issuer of the popular stablecoin USDC. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. Regulation Kenya bans second-hand EVs Eighty-five out of every 100 cars imported into Kenya are second-used cars. The country now wants to change this narrative for its nascent EV market. The news: Yesterday, Kenya’s Bureau of Standards (KEBS)—a regulatory body responsible for enforcing quality and safety standards—banned the importation of electric vehicles that have less than 80% battery life. The body also directed that used vehicles imported from Japan, UAE, Thailand, Singapore, South Africa and the UK will be subject to mandatory pre-inspection by the bureau-appointed inspection agent—Quality Inspection Services Inc. (QISJ). Why? A short answer is that Kenya is taking a stand against becoming a dumping ground for electronic waste and subpar vehicles. The KEBS in recent times has applied extra layers of scrutiny on the kind of cars that are allowed in the country. In December last year, the KEBS banned the importation of vehicles whose year of first registration is before January 1, 2017. While these proactive measures showcase Kenya’s commitment to sustainable development and responsible consumer practices, it remains to be seen if other African nations follow suit. Streaming Showmax surpasses Netflix in Africa Since it lost nearly 1.2 million subscribers in the first half of 2022, its first decline in a decade, Netflix has been fighting to regain its market share. By Q2 of 2023, the company managed to add nearly 6 million subscribers, thanks to measures like a crackdown on password sharing and a cheaper ad-supported subscription tier. However, despite this subscriber growth, the company’s shares plummeted by roughly 20% in July 2023. As Netflix grapples with regaining lost ground, it’s also facing stiff competition in Africa, one of
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Coinbase-backed Mara paused wallet service since November citing UK regulations
Mara Wallet, a multicurrency wallet by Mara, the crypto startup that raised $23 million from investors like Coinbase and FTX, has been inaccessible since November 2023. The company told users to move their deposits to traditional bank accounts pending the completion of the upgrade but did not specify a timeline. Mara, which claims to have 4 million users, said it paused the wallet to comply with new regulations in the UK. “We’re changing our regulatory backend to align with our new EU regulatory compliant partner in response to changes in UK policy,” Nnandi said in an email to TechCabal. Nnandi shared a link to an article about the UK regulation that triggered the pause of the wallet service. That article contained a link to a list of companies the FCA says may be “providing or promoting financial services or products in the UK without our permission.” The list does not include Mara or any of its known service providers. Mara did not specify how its marketing was no longer compliant with the country’s new regulations. The wallet service, which allows users to buy, send, sell, and withdraw crypto assets and fiat, was primarily marketed to Nigerian and Kenyan users. It used a referral system that rewarded users (Mara Champions) with “Mara tokens.” Champions earned tokens for downloading the wallet and referring others. Per the company, one Mara token is equivalent to $1, and some of Mara’s champions referred as many as 200 users to the crypto wallet service. But many of those users say they have never been able to withdraw these tokens. In November 2023, when Mara asked users to withdraw their deposits from the wallet, users were unable to withdraw their referral earnings, even though the app displayed the funds in the wallet. Some users who have been waiting for nearly a year to withdraw their referral earnings have expressed worry that their marketing efforts have been in vain. “All referral bonuses accumulated will be available once the Mara Exchange is launched,” Nnandi, Mara’s CEO, said. The company is also working on a separate pro-exchange for sophisticated traders. Mara was founded in 2021 by Chi Nnadi, Dearg OBartuin, Kate Kallot, and Lucas Llinás, former Nvidia, Founders Bank, and Rappi executives. The startup raised a seed round of $23 million in equity and token sales from over 100 investors, including Coinbase Ventures, Alameda Research (FTX), and Distributed Global, in 2022. Since 2022, two co-founders, Kallot and Llinás, have left the company. Kallot, who has gone on to raise funding for her climate-tech start-up, Amini, did not respond to requests for comments. In 2023, the startup also laid off its marketing team and nearly everyone at its nonprofit arm. After the layoffs, Mara Foundation also shut down Mara Academy, a crypto education platform, that it launched in partnership with Circle, the issuer of the popular stablecoin USDC.
Read MorePartech’s record $300 million Africa-focused fund reaches final close despite global funding dip
Partech Africa, the global VC fund, has closed “Partech II,” its second Africa-focused fund, at $300 million to invest in African startups in multiple sectors. It is the largest Africa-focused fund, doubling Partech’s first fund, which closed at $143 million in 2018. The new fund will focus on investing in seed to Series C rounds with ticket sizes ranging from $1 million to $15 million. Partech’s close comes as funding for Africa fell by 36% last year, and more than half of investors pulled back on funding African startups. The close comes a year after Partech hit its first close at $263 million and the new funding comes from US and Middle East pension funds, sovereign funds, and new “strategic investors” like Africa Reinsurance Corporation and Dubai Future District Fund (DFDF). “We are grateful for the support and commitment of our investors: almost all Fund I investors reinvested, and some more than doubled their commitment. We are also honored to get support from a new set of strategic investors from the US, the Middle East and Africa, and for some of whom, this marks their first commitment in African tech,” said Cyril Collon, General Partner at Partech. Partech, one of the most active African venture stage investors last year, invested in startups like Wave, Yoco and Vendease in its first fund and has now invested in three startups, including Revio, a payment startup in South Africa and two other undisclosed startups in Egypt and Senegal with its second fund. Partech will also open a new office in Lagos, home to a third of its portfolio, as it expands its team and base in Africa. “With our presence in Dakar, Nairobi, Dubai and now Lagos, we are strengthening our support on the ground for entrepreneurs,” said Tidjane Deme, general partner at Partech. Funding reaches two-year decline as African startups raise $3.2 billion in 2023 *This is a developing story
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How to add multiple WhatsApp accounts to one WhatsApp 2024
WhatsApp recently rolled out an update to improve the user messaging experience: the ability to add multiple WhatsApp accounts within a single WhatsApp app. This long-awaited feature brings convenience and flexibility to users who previously had to juggle between different WhatsApp apps or devices to manage their various WhatsApp identities. Here, we’ll show you how to add multiple WhatsApp accounts to one WhatsApp app. How to add multiple WhatsApp accounts in one app Carefully read through the steps to get your WhatsApp to accommodate your multiple WhatsApp accounts: 1. Update your WhatsApp App First, ensure that your WhatsApp application is up to date. Head over to your app store – whether it’s the Google Play Store for Android users or the App Store for iOS users – and download the latest update for WhatsApp. 2. Access Settings Once your app is updated, open WhatsApp on your device. Navigate to the settings menu within the app. This can typically be found by tapping on the three dots in the top right corner of the screen. 3. Click on account Within the settings menu, locate and tap on the “Account” option. This will take you to a screen where you can manage various settings related to your WhatsApp account. 4. Find Add Account Scroll through the account settings until you find the option labelled “Add Account.” This is the feature that allows you to incorporate additional WhatsApp accounts into your existing setup. 5. Add or Create a New WhatsApp Account After clicking on “Add Account,” you’ll see your current WhatsApp account displayed, accompanied by a plus sign. Tap on the plus sign to either add an existing WhatsApp account or create a new one. Follow the prompts to complete the process. 6. Repeat as needed You can repeat this process to integrate more WhatsApp profiles as you require. Whether it’s for personal, professional, or other purposes, adding multiple WhatsApp profiles is now easier than ever. Bonus Tip on how to add multiple WhatsApp accounts in one app : WhatsApp Beta If you’re eager to access new WhatsApp features before they’re officially rolled out to the public, consider joining WhatsApp Beta. This testing platform allows users to try out upcoming features and updates ahead of time, including the ability to add multiple WhatsApp accounts. Final thoughts on how to add multiple WhatsApp accounts to one WhatsApp app With these simple steps, you can seamlessly integrate multiple WhatsApp accounts into a single app, streamline your communication and enhance your organization. Whether you’re managing personal and professional contacts or simply prefer to keep different aspects of your life separate, the “add account” feature in WhatsApp offers unparalleled convenience and flexibility.
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👨🏿🚀TechCabal Daily – Disha takes a break
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning The pressure is getting worser for everyday Nigerian citizens. The country’s inflation rate, which hit a 28-year high at 29.90%, is making it difficult for people to afford essentials even when there’s a buy-now-pay-later option. According to BNPL startups we spoke to, it’s a double-edged sword. On one hand, these startups are getting new customers with less disposable income who now want to use BNPL, and on the other, there are now customers who can’t afford to pay off their debts. Here’s how inflation is affecting BNPL startups in Nigeria. In today’s edition Lagos to use tech to tackle kidnappers Flutterwave’s Disha takes a break Al Nasr to roll out locally-produced EV cars in Egypt How fintechs can adapt to FX reforms How many websites are hacked daily? The World Wide Web3 Opportunities Crime Lagos to use tech to track kidnappers Last month, the former Nigerian minister for comms, innovation and digital economy Isa Pantami made a statement, in a now-deleted X post, that surprised many Nigerians: that Nigerian security officials were refusing to use SIM cards to apprehend the increasing number of kidnappers. Side bar: The country, in 2019, approved $433 million to bankroll a five-year project that would provide everyone with unique 11-digit identification numbers that would be registered to every SIM card. So far, about 102.39 million NINs have been registered. While Nigeria saw a slight decline in kidnapping reports in 2023, the ex-minister’s statement still made a splash as it concerned the kidnapping of five sisters—one of whom was murdered—in the nation’s capital territory of Abuja. The news today: Now, security officials in the country’s tech capital of Lagos have announced the reactivation of tracking devices to apprehend kidnappers. The Lagos State Commissioner of Police said, on Friday, that it’s working with several other agencies to apprehend culprits in hot zones. Re-activation? Per the officials, the tech used to track SIM cards and match the national identity numbers registered to the cards has been deactivated since 2021. Per Punch, sources at the Nigerian Police Force say that the police don’t have adequate tracking devices, and sometimes have to depend on tracking systems by the domestic intelligence agency DSS which increased response time. The sources also revealed that the payment for the tracking service at the NPF was suspended at the same time. With the service now back on track in Lagos, it’s unclear if other states across the federation, especially in hotspots like Kaduna, FCT, and Niger will also get the same support. Access payments with Moniepoint You don’t have to take our word for it. Give it a shot like he did Click here to experience fast and reliable personal banking with Moniepoint. Startups Flutterwave’s Disha takes a break Flutterwave’s 2021 acquisition of Disha was a trendsetter. It was one of the very first publicly-known instances of big African startups acquiring smaller ones. In the same year it became a unicorn, the fintech swooped in to save the creative design agency with 20,000 users which, at the time, was at risk of shutting down. Now, Disha is going away again: Last week, Disha announced the product will be paused indefinitely from March 31, 2024. Its 100,000 creators have until then to migrate their content and profiles to other platforms. According to the team, the pause will help the Disha team focus on its product and provide better tools for creators. While the move seems sudden, a look at Disha’s pages across Instagram, Twitter and LinkedIn shows reduced engagement over the past two years. Disha helped creatives create one-page websites and the Flutterwave acquisition added a payment option for the platform. The platform has grown its users 5x since its acquisition, but it’s likely that this growth isn’t matching Flutterwave’s vision for the platform. Flutterwave’s CEO Olugbenga Agboola had said, at the time, that he considered Disha the creator version of Flutterwave Store which now serves over 900,000 businesses across 154 countries. Will Disha come back? Disha isn’t the first Flutterwave-owned product that has been “halted temporarily”. Early in 2022, Flutterwave paused its Barter by Flutterwave, its virtual dollar card service, due to problems its partner company, Union54, faced with chargeback fraud. While other companies who also paused their services have since revived their cards, Flutterwave is still yet to bring Barter back. Last year, Agboola gave a statement that now mirrors Disha’s: that Flutterwave is working to upgrade Barter and make it even more efficient. The company is yet to give any concrete details on the return of Barter. Secure payment gateway for your business Fincra’s payment gateway enables you to easily collect Naira payments as a business; you can collect payments in minutes through bank transfers, cards, virtual accounts and mobile money. Create a free account and start collecting NGN payments with Fincra. Mobility Al Nasr to roll out locally-produced EVs in Egypt We’ve seen a bit of fair interest in indigenous EV solutions on the continent. Just last week, Kenya-based EV company Roam announced a $24 million raise to scale its business across the country. Roam’s competitor, BasiGo, also recently expanded its operations to Rwanda where it launched electric buses for public transit. In Egypt, Al Nasr is working to do the same. Last week, the state-owned company revealed that it’s working with an undisclosed Chinese company to roll out locally-produced EVs in Egypt by 2025. In 2022, the company announced plans to set up Egypt’s first EV distributorship in partnership with the National Automotive Company (NATCO). At the time, the plan was to roll out locally produced EVs in the country by 2023, but things fell apart after Al Nasr struggled to settle on a foreign manufacturing company to handle the assembly. President of the company Khaled Shedid said on Saturday that the company had finalised deals with a Chinese manufacturer that will see five different types of EVs launch in Egypt next year. Egypt will
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Inflation is a two-sided coin for BNPL startups in Nigeria
Since its launch in 2020, CDCare, a Nigerian e-commerce startup, has sold more blenders than any other products. The startup, which offers Buy-Now-Pay-Later (BNPL) options, allows users to spread payments and has gained popularity in the Nigerian market, especially for young people who want to buy electronic gadgets, home appliances and furniture. CDCare is one of the major BNPL providers in Nigeria, alongside CredPal, Zilla, and Carbon Zero. They operate in a market where retail credit is in its very early stages, In 2023, only about 6-10.5% of Nigerians formally accessed a loan, with the rest having to borrow from family and friends. According to Tobi Odukoya, CDCare’s CEO and co-founder, the effects of inflation on their business have been particularly interesting. “We have seen a lot of new customers who now have to spread payment as they cannot afford one-time payment for their wants,” he shared with TechCabal. “There’s now a new set of Nigerians who now have less disposable income and can now only afford to pay in instalments what they used to be able to pay for in full. At the same time, however, the inflation has cancelled out a whole demographic of former middle-class Nigerians who now cannot afford to pay for any wants at all. This surprising trend highlights the evolving nature of lending financial products in a challenging economic climate. This is the same for CredPal, another player in the Nigerian BNPL space which launched in 2018. In a response shared with TechCabal, Fehintolu OlaOgun, CredPal’s CEO, shared that the inflation has driven growth for the company. “It has affected the purchasing power of people, but it has also been a driver for growth as people are more interested in spreading payments as opposed to paying in full,” he wrote. He however shared that the startup is incredibly critical of this high demand and has employed even more stringent measures to confirm the eligibility of customers. Prior to this, KYC requirements for CredPal were work details like office address, salary range, salary date, and other personal information. Now, users are mandated to provide functional work IDs before accessing credit. Unlike CDCare, CredPal has a strict credit limit for users and only allows them to purchase items within a stipulated amount based on their credit history or ratings. The chaotic credit market Nigeria is not the greatest market for credit and BNPLs are not the only players suffering from this, as neobanks and other lending platforms are staggering under the weight of non-performing loans. Carbon and FairMoney, both players in the Nigerian lending space have both seen their profits take a dip as a result of impaired loans. While a part of this can be attributed to the moral standing of individuals, a larger part is perhaps the economic situation in the country. Prices go up nearly every day, and for the average Nigerian, this destabilizes their finances and leaves them with even less to repay loans. *Eno, a 24-year-old graphic designer in Abuja, defaulted on the repayment for a laptop she purchased from CDCare in 2023. A six-month repayment plan turned into seven as the amount she allocated to her essentials became insufficient due to the increase in transport fares, forcing her to eat into the funds for repayment. “I’m probably banned from the app now,” she shared with a chuckle. “But I really did everything in my power to repay, including trying to borrow from lending apps and asking for a salary advance.” It took her three weeks past the due date to complete her payment, and in that period, she received a barrage of calls and messages from the platform. “I reached out to them via every single platform I could think of. WhatsApp, texts, emails, calls, etc to request for an extension but nothing worked,” she shared. CDCare lets users spread payments for as long as one year; delivering the items halfway through the payment cycle. For their vehicle instalment payments, users get up to three years to complete payments. This extended payment period is strategic according to Odukoya, who shared that the repayment rate on their platform is quite high – as high as 90%, he maintained. Last week, TechCabal reported that Zilla, another BNPL startup, pulled the plug on its BNPL offering. This came after it faced extended low patronage and complaints from buyers who favoured other platforms like CredPal and CDCare for their longer repayment periods. They allowed a maximum of four months for users to complete payment on items. Before BNPL, Odukoya affirms that they’re first an e-commerce company, and that shapes how they’ve structured their platform. Unlike players like CredPala and Zilla which provide a list of vendors in various categories on their app for users to make their pick, they (CDCare) bypass the need for merchants by dealing directly with the biggest distributors. This does two things: help them guarantee the quality of products and ensure lower prices – both of which have been instrumental in helping them stay ahead in the Nigerian BNPL superiority race. Optimism has been unable to stop the naira’s fall In January, the International Monetary Fund (IMF) predicted that the inflation rate is expected to drop to 23% this year 2024, and consequently 15.5% by 2025, due to the foreign exchange reforms introduced by the central bank. These reforms include monetary tightening which the CBN governor, Yemi Cardoso, disclosed in December 2023. In spite of this, the naira has tumbled aggressively in 2024, depreciating 31% to reach 1,400 on January 30. Zuleihat Yakwari, who runs a home appliances store in the country’s capital, shared with TechCabal that business is incredibly slow. Most of her customers now prefer to patronize declutter pages on social media where they buy used appliances from people relocating to other countries. The rest, like those who use BNPL platforms, prefer to pay in bits. Sometimes, she has to sell some of her products on declutter pages for reduced prices, because they just need to go. “People
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How to apply for SRD SASSA Grant in 2024 and get it
The South African Social Security Agency (SASSA) has continued to provide relief to those in need through the Special Relief of Distress (SRD) grant. If you find yourself in need of financial assistance, here’s a comprehensive guide on how to apply for the SRD SASSA 2024 grant. Step 1: Choose an application channel to apply for the SRD SASSA 2024 You can submit your application for the SRD SASSA 2024 grant through various channels: Apply for the SRD SASSA 2024 via WhatsApp Send a WhatsApp message to 082 046 8553 You’ll provide personal details as prompted by the chat Then you’ll receive a Reference number, an OTP number and a website link to click on Afterwards, click on the link, insert the OTP number, and click verify Then provide your surname and ID number Then confirm details as per details provided on the chat Continue to Step 2: AGREE TO TERMS Apply for the SRD SASSA 2024 via the website Open your Chrome, Safari or any other internet browser you have Got to https://srd.sassa.gov.za Enter your capture ID number and mobile then click the send SMS button You will receive a 6-digit OTPnumber Insert the OTP number and click verify pin Continue to Step 2: AGREE TO TERMS AND CONDITIONS Apply for the SRD SASSA 2024 via the SASSA Chatbot Use your Chrome or Safari Internet browser Visit www.sassa.gov.za On the website, click on the SRD R350 Grant assistance chatbox Then provide your ID and mobile number Through the chat, choose ‘I want to apply for SRD R350 grant’ The chatbot will provide a link to the SRD Website You’ll then follow the SRD Website Steps Continue to Step 2: AGREE TO TERMS AND CONDITIONS Ensure to select the channel that suits you best to apply for SRD SASSA 2024. Step 2: Agree to Terms and Conditions Read and agree to the Declaration and Consent Document. Understand the contents of the You and Your Special COVID-19 SRD Grant document. Step 3: Provide personal details Provide necessary personal information such as ID number, name, surname, address, and gender when you apply for SRD SASSA 2024. Step 4: Submit Banking Details/Choose Payment Option For banking details submission, here’s what to know about the categories outlined for the process: New Applicant with Personal Bank Account Choose Bank Name Provide Account number Provide Branch Name Provide Account Type Agree to Terms and Conditions Submit Banking Details New Applicant without Personal Bank Account Choose Payment option- Cash Send Agree to Terms and Conditions Submit Banking Details Existing Client Confirm Existing Personal Banking Details Agree to Terms and Conditions Click Submit SASSA clients with cash send option who wish to add bank details Choose Bank Name Provide Account number Provide Branch Name Provide Account Type Agree to Terms and Conditions Submit Banking Details Step 5: Receive an SMS on your mobile number After successfully updating your banking details, expect to receive an SMS confirming the activation of your SRD R350 Grant application. Step 6: SASSA verification and validation process Your provided details will undergo verification and validation processes against various databases when you apply for SRD SASSA 2024. Applications will be either approved or declined with reasons provided. Step 7: Viewing SRD SASSA application status you apply for it Check your application status through the SRD website, WhatsApp, or by contacting the toll-free call centre when you apply for SRD SASSA 2024. Step 8: Reconsideration If your application is declined, you have the right to request reconsideration within 30 days. Apply for reconsideration through the SRD website or contact the SASSA Toll-Free Call Centre for SRD SASSA 2024. Step 9: SRD grant cancellation Should you need to cancel your SRD grant application, visit the SRD website, provide the necessary details, and follow the prompts to cancel SRD SASSA 2024. Step 10: SRD grant reinstatement If you wish to reinstate a cancelled grant application, visit the SRD website, provide the required details, and agree to terms and conditions before reinstating for SRD SASSA 2024. General Information on how to apply for the SRD SASSA 2024 For any further assistance or inquiries: Contact the SASSA Toll-Free Call Centre on 0800 60 10 11. Send an email to Grantsenquiries@sassa.gov.za. Visit the SASSA website (https://www.sassa.gov.za) Applying for the SRD SASSA 2024 grant is an easy process aimed at providing much-needed support during these challenging times. Make sure to follow each step carefully to ensure a smooth application experience.
Read MoreHerbert Wigwe in tech: From incubating Flutterwave to backing SystemSpecs, BVN
Since the death of Herbert Wigwe, the founding Group CEO of Access Holding Plc on 9 February 2024, several tech founders and executives have been pouring encomiums on his impact on their lives and businesses. “I called him the Oracle of Isiokpo. My oracle. Because if Warren Buffet was the Oracle of Omaha; the best investor in America, then we needed our oracle in Africa. And his name was Herbert Wigwe. I called him my blueprint because he provided a road map of hard work, discipline and hustle that I follow/understand, like the blueprint of a building,” Ola Brown, founder of HealthCap, a venture capital firm that invests in fintech and health tech companies, wrote in a riveting tribute. Herbert Wigwe was many things to many people, but for many founders and executives in Nigeria’s tech industry, he was a patron, a mentor and a sponsor. The history of companies like Flutterwave, Africa’s most valuable fintech, Unified Payments, and SystemSpecs will not be complete without his pivotal role in their growth. Taking a big chance on Flutterwave For Gbenga ‘GB’ Agboola and his co-founder Iyinoluwa Aboyeji, Wigwe was why Flutterwave, Africa’s most valuable fintech company, exists today. Aboyeji writes in a post that Wigwe took a big chance on the fintech unicorn even though he never owned a single share of the company. “He came out with us to San Francisco and pitched the biggest technology companies in the world alongside us. He was the sure reference with Silicon Valley investors and gave us business that helped us grow to become Africa’s most valuable startup,” wrote Aboyeji. Agboola, on the other hand, is an alumnus of Access Bank. He worked as head of Digital Factory and Innovation, and head of innovation & product management, digital banking at the bank from 2014 to 2018 before moving to take over the position of CEO at Flutterwave. According to sources, it was while at Access Bank the idea for Flutterwave came and took off. “My journey with Herbert began in a remarkable chapter of my life, right after my startup was acquired. I was a young engineer/entrepreneur, barely 30, stepping into a senior role at one of the largest banks in Africa, Access Bank. It was Herbert who believed in my potential to spearhead digital transformation, a task that seemed daunting but was made achievable through his guidance and faith in me,” Agboola wrote via X . Pushing Remita to mainstream Remita, the payment platform built by SystemSpecs, may not have the global reach of Flutterwave,it is however the payment solutions company most preferred by the public sector in Nigeria. It is currently used by 22 states of the federation and boasts 3.8 million users nationwide. In 2018 SystemSpecs found it difficult to get the approval of the Central Bank of Nigeria (CBN) for one of its solutions, the Remita Data Referencing Services, to support the provision of payday loans for federal government workers and millions of salary earners in the country. For approval to be granted, Remita needed the backing of a commercial bank which was not easy at the time because collaboration between fintech companies and banks was a rarity. Mujib Ishola, chief technology officer, Remita, said it was Access Bank under Wigwe’s leadership that identified an opportunity for the bank to lend to federal workers and collaborated with SystemSpecs to secure the approval of the CBN. This led to other lenders participating in the payday loan market. The Remita Data Referencing Services gave federal workers and salary earners access to loans from Access Bank and other lenders. It has also contributed significantly to the liberalisation of the retail lending space, with more than 50 licenced lenders riding on the rail. “Herbert was at the forefront of our partnership, as he was able to create a structure that facilitated the completion of the project just within a few weeks. This initiative brought comfort and assistance to many workers who needed money to do things, just at the time they needed it and were experiencing the ease of seeing this happen for the first time. It was pure leadership. The collaboration has opened a new frontier to retail loan provision and the significant expansion of economic activities at the retail level,” said Ishola. The BVN, banking agents, and eTranzact Herbert Wigwe was one of the prominent members of the Bankers Committee that pushed for the adoption of the Biometric Verification System (BVN) in Nigeria in 2014. Also, as chairman of the Bankers Committee in 2018, he championed the creation of the banking agent network in 2018. Wigwe is also known to have funded Unified Payments and eTranzact at different times. Niyi Toluwalope, CEO of eTranzact said Wigwe had a “profound impact” on the company by his display of exceptional leadership and strategic insights. “As a visionary leader, his exceptional leadership and strategic insights contributed to the growth of our organization. The various insights he shared during our engagements with him were also very valuable,” Toluwalope said. His investments in Nigerian startups are said to be worth millions of dollars. “There were numerous investments in Nigerian startups that anyone will struggle to track down following his demise. As a friend put it to me, investments worth millions of dollars were made following conversations with him alone,” noted Feyi Fawehinmi, an investment accountant and author of Formation: The Making of Nigeria from Jihad to Amalgamation. For Toluwalope, Herbert’s biggest legacy in Nigeria’s tech ecosystem is best portrayed through his visionary approach to financial technology, which contributed to the transformation of the industry.
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