Understanding IP laws is instrumental for the growth of the creative economy
In the digital age, content creators are the lifeblood of the internet, their creativity driving innovation and contributing to economic growth. However, this dynamic community is often plagued by intellectual property (IP) theft, threatening their livelihoods, and undermining trust within the online ecosystem. Many online creators employ the use of music, videos, and photos from other creators while creating theirs, but there seems to be a lot of learning to do about what counts as intellectual property (IP) and even how to properly interact with other creators’ work and IP. IP is anything that’s born out of intellect and enjoys protection under the law, but that’s not the only requirement for a piece of content to be considered IP. For anything to be considered IP and not just an idea, it has to meet certain criteria: sufficient work has to go into creating it, it has to be an original idea, and it has to be placed in a fixed medium of expression ie as a recorded song, a book, a movie, a logo, or a piece of art. IP Laws under the Nigerian Copyright Act of 2022 According to a report, 97.7% of content creators view music as essential to creating their own content, so it’s safe to only very few creators don’t need to use other people’s work in their content. This is the case for Joshua*, a creator who makes funny videos that live on Instagram and TikTok. “Platforms like TikTok typically flag content that has more than 30 seconds of someone’s music or sound, but 90% of what goes into my videos is my own content. I often tag and credit the creators if they’re not very popular,” he says. However, adding credit isn’t sufficient because each piece of content that counts as IP is considered an asset and can be monetised. This means that proper attribution goes beyond just giving credit to the original creator; it has to be done a certain way for it to be right and complete. This means that to use someone else’s IP, you have to reach out to them, give them sufficient information on what the piece of content is to be used for and seek their consent. Otherwise, the piece of content is being devalued, and the original owner might be losing money, whether they know it or not. Of course, like many things, there are a few exceptions to the rule, according to Grace Abubakar, an IP and tech practice lawyer at DLA Piper, “There are exceptions, and we call them fair use. There are times when it’s permissible to use a creator’s work without getting permission from them, and these include for educational purposes or parody/satire. Commercialisation is completely out of the question, so it’s always a good idea to reach out to ask for consent,” she told TechCabal. What actually constitutes IP infringement? According to the Nigerian Copyright Act of 2022, any use or copying of images, music/sound or other forms of IP without permission or consent, especially for commercial purposes, counts as infringement. In such cases, the original owner has the right to seek legal remedies. These typically start with issuing a notice to the infringer, notifying them to take down the piece of content, and in the case where this doesn’t work, issuing a cease and desist. If, after the cease-and-desist, they don’t comply, the court can grant injunctions that legally bind the other party to remove or delete the content or be held in contempt of court or face legal ramifications. Caleb Nmeribe, another associate at DLA Piper, expands more on these rights “There are safeguards under this law that are meant to protect creators from infringement. You have the moral right to safeguard your work from (commercial) exploitation, the right to be attributed and associated with your work, and the right for people to seek consent for the use of your work,” he explains. Other IPs include trademarks, patented designs etc. The owners of these IPs can sue for the use of their property if infringement is discovered. Creators need to be aware of what counts as intellectual property, how it can be monetised, how to protect their IP assets, and how to properly interact with other creators’ assets as well. The Data Protection Act helps to protect creators from infringement and devaluation of their works: people can ask for their work to be taken down, and even repeat offenders could have their accounts taken down. Content creation is a business for many, and for businesses to grow and work, they have to be built on the right structures, which include integrity and the right moral code of ethics. For the creator economy to grow and thrive as much as we want and expect it to, being completely aware of what counts as IP infringement is the best way to work properly with other creators and not stand in the way of them getting their coins.
Read MoreZenith Bank eyes France expansion, joining other Nigerian banks on global stage
Zenith Bank, a Nigerian tier-1 bank, wants to expand to France as it looks beyond Africa. Zenith Bank, one of Nigeria’s largest banks with ₦13.38 trillion in customer deposits, wants to expand to France, joining the likes of First Bank, UBA and Access Bank which are expanding to other continents. Ebenezer Onyeagwu, Group Managing Director/CEO of Zenith Bank Plc, disclosed at the Chartered Institute of Bankers annual dinner held on Friday evening at Eko Hotels, in Lagos. “This afternoon, we signed a Memorandum of Understanding (MoU) with the government of France to signal the commencement of the issuance of a banking licence to Zenith to commence operations in France,” Onyeagwu said, beaming with a smile. The Zenith Bank CEO was light on the details about when the approvals and regulation of the France subsidiary will be completed. Zenith Bank’s playbook is thus similar to Access Bank’s move to expand into Asia early in 2024, as previously reported by TechCabal. The regulatory approval, if granted, would enable the bank to serve customers in the region that is the largest non-African trading partner. A move like this would be synonymous with South Africa’s Standard Bank Group and TymeBank expansion into Asia, bolstering Access Bank’s assets under management, currently at $26.5 billion. Zenith Bank currently has subsidiaries in The Gambia, Ghana, Sierra Leone, the United Kingdom, UAE, and China with its parent company in Nigeria. Its external goal is to encourage cross-border marketing and position the bank as a leader in commercial and retail segments. Its lending business across its subsidiaries is directed towards international and export trade transactions. Earlier this year, the bank signed an MoU with the African Continental Free Trade Area (AfCFTA), committing $1 million to the SMARTAfCFTA portal, an initiative of the bank to digitalise trade. Zenith Bank’s unaudited third-quarter financial results rose 149% to ₦505 billion.
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USSD codes for GTB, FCMB, UBA, and Fidelity Bank
To make your financial transactions smoother, Nigerian banks offer USSD codes that allow you to perform various banking tasks from your mobile phone without the need for an internet connection or mobile app. In this article, we’ll explore the USSD codes for four leading Nigerian banks: GTB, FCMB, UBA, and Fidelity Bank. GTB USSD codes (Guaranty Trust Bank) GT Bank is renowned for its customer-centric approach. With GT Bank’s USSD codes that regenerate from *737#, you can: Check your account balance: Dial *737*6*1# and follow the prompts. Transfer funds: Send money to other GT Bank accounts by dialling *737*1*Amount*Recipient’s Account Number#. Recharge your phone: Top up your mobile phone with airtime by dialling *737*Amount#. Bill payments: Pay utility bills and subscriptions using *737*50*Amount*Unique Reference Number#. Open an account: If you’re new to GT Bank, dial *737*0# to open an account. FCMB (First City Monument Bank) FCMB offers a range of USSD services from the root code *329#. Such include: Check account balance: Dial *329*0# to see your account balance. Transfer money: To send funds, dial *329*Amount*Recipient’s Account Number#. Airtime top-up: Recharge your mobile phone with *329*Amount#. Bill payments: Use *329*Amount*Merchant Code# to pay bills. UBA (United Bank for Africa) UBA’s USSD codes are drawn from *919#, and they can make your banking a breeze: Account balance: Dial *919*00# to check your balance. Fund transfer: To transfer money, use *919*Amount*Recipient’s Account Number#. Airtime purchase: Recharge your phone with *919*Amount#. Bill payments: Pay bills with *919*30*Biller Code*Amount#. Fidelity Bank Fidelity Bank’s USSD services, from the base code *770#, simplify banking tasks: Account balance: Dial *770*0# to get your balance. Transfer money: Send funds by dialling *770*Recipient’s Account Number*Amount#. Airtime recharge: Top up your phone with *770*Amount#. Bill payments: Pay bills with *770*Merchant Code*Amount#. Final thoughts on GTB, FCMB, UBA, and Fidelity Bank USSD codes In a digital age where time is of the essence, these USSD codes are your key to unlocking the world of banking convenience.
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Next Wave: Venture capital is undergoing a reset but no one is changing
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 26 November 2023 I’m wondering what is changing about how VCs, founders and startup stakeholders (employees and consultants alike) think about how to operate in Africa. No plaititudes. No cached sentences. Most of the money that goes into venture capital investments in African startups comes from sources outside Africa. If anything is happening to those investors, it affects the capital African companies get. Especially as the continent’s local pool of private and public capital remains severely stunted. Thus, if there is a reset in the practices of firms that channel money into African startups either as venture capitalists (VCs) or as limited partners (LPs), the effect will trickle down to the continent. It’s a no-brainer. And things are happening. “Fifty-six percent of European VCs haven’t returned capital to their LPs in the last 12 months,” Amy Lewin of Sifted reported almost two weeks ago. In the United States, the story is similar: “Pressure from LPs is poised to intensify while funding for VC firms remains in the pits,” The Information’s Kate Clark wrote recently. The meaning of this is simple. Investors of all stripes evaluate macro-risk (the overall state of the economy) when they choose to make investments. Africa’s overall economic landscape is challenging enough as it is. However, the deteriorating state of major and mid-size economies outside of Africa is an additional but second-hand macro-risk which investors have to pre-consider before even allocating capital to opportunities in Africa. By the way, this is not only affecting venture capital or tech. Take China for example. The Asian giant and second-largest economy in the world has seen a steep crash in the amount of foreign investment that it receives. The real estate sector is under immense pressure and local banks are vulnerable—a consequence of years of poor risk management and assumptions. On the other side of the coin, official loans from the Chinese government to African countries have dropped by more than 87% from their peak in 2016. Globally, China’s Belt and Road Initiative is losing steam. And this is despite an expansion in the BRICS+ group of countries. Source: Reuters Partner Content: All eyes on the Africa’s Business Heroes fifth anniversary and grand finale: Why you should attend Text ad end–> This is just one oversimplified example of how the macro-risk Africa faces is not only African. Today, the macro-risk calculus is first a discount of the tradeoffs between American, European and Asian risk, even before African risk is modelled. Africa’s n-body problem In classical physics, the n-body problem is the problem of predicting the effect the gravitation fields of individual celestial objects like moons, stars and planets have on each other as they move in orbit. Understanding the n-body problem helps astronomers understand how the earth-sun-moon system works. In general, it’s a useful mental model to think about how complex bodies affect each other. One important characteristic of this physics phenomenon is that it is a problem that cannot be solved by analysis because it is constantly changing. The world of business is the same. The factors, especially in this day and age, are constantly in motion. Africa’s n-body problem is something that investors have dealt with for a long time without recognising it as such. It is the complex interplay between a low-depth private and public capital market, capital from foreign partners or development agencies with missions that are not always aligned, and a base of startups or deal-flow that are often created to follow trending narratives rather than create outlier value. All the above sit on precarious economic situationships that are themselves another type of an n-body problem. The first part of this essay discusses how the economics of Africa are further complicated by dependence on global economics. But in late 2020, and up to the first few months of the third quarter of 2022, Africa’s investors seemed to have found stability in the quick pace of markups and flowing cash. That stability is long gone today, but I see little sense of urgency to get ahead of the curve. I am yet to find attempts to define and find another centre of gravity. Everyone seems to hope that with the turn of New Year’s Eve, things will begin to get better, i.e. return to 2021. But that is a mistake. Article continues after this ad Join us at the #BluechipDataandAISummit: Building an Effective Data and AI Solution. Shape the future of your business and industry with data-driven intelligence, innovative solutions and sustainable growth. Secure your seat today “It is not necessary to change. [Only because] survival is not mandatory” If seed-stage investors and founders created wealth and returned capital because big funds from the US and Europe bought a stake in their companies, how would they create wealth or return capital today when the big money is in retreat? If LPs are punishing VCs who mindlessly played the pass-the-burnt-potatoes game in 2021, what lessons are the investors learning? If we played the power law to its breaking point, where do we start to pick up the pieces? And lastly, as Dan Gray of Equidam asks, “If there’s an impending cull of early-stage VCs, which group will survive? The actual performers, or the best networked?” Last week, I wrote: “If the venture capital story is not working then maybe investors in Africa need to create something new. If however the philosophies that underpin venture capital are intrinsically undamaged, then we ought to look elsewhere to find the mismatch in expectations.” “Things change and evolve,” Morgan Housel, founder of Collab Fund, wrote last week, “so the phrase ‘this is how we’ve always done it’ should
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👨🏿🚀TechCabal Daily – Patricia nabs Nigerian politician for $760,000 theft
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy salary week X is bringing back headlines less than two months after Chief Twit Elon Musk removed them to “greatly improve aesthetics”. Last week, Musk announced that headlines will come back to X soon. This time though, the headlines will be in the top of the link preview instead of the bottom. Musk didn’t say why the previews are coming back, but it could have something to do with this intelligible tweet he made about OpenAI. Chief Twit Elon Musk is steadily showing us that CEOs make mistakes too, and regularly—like you on an impromptu Meet call—don’t know what they’re talking about either. In today’s edition Patricia nabs Nigerian politician for $760,000 theft Quick Fire with Bemi Idowu Here’s Nigeria’s apex bank plans to solve inflation Egypt to kick-start e-KYC in 2024 Fawry concludes security checks The World Wide Web3 Opportunities Cybercrime Patricia nabs Nigerian politician for $760,000 theft GIF source: Tenor Four days after its repayment plan was due to start, fintech Patricia identified a Nigerian politician, William Bonse, as a culprit in its 2022 $2 million hack. According to the Nigerian Police Force (NPF), Bonse, who was a gubernatorial candidate in Nigeria’s 2023 elections, reportedly diverted ₦607 million ($760,000) from the fintech’s account into his through a cryptocurrency wallet. Bonse, who is allegedly working with others, had been apprehended by the police who say the politician has “registered his involvement” in the hack. ICYMI: In May, Patricia was revealed to have suffered a hack in 2022 which cost it $2 million in customer funds. The hack led to several customers being unable to withdraw funds. Since then, Patricia has tried several measures to reassure customers including relaunching its app, offering to turn customer assets into a new Patricia Token, raising funds to repay customers, and even offering customers shares in exchange for their stuck funds. While, in a May disclosure, the company said it had pinpointed a single culprit, it declined to disclose any details regarding the individual. Bonsu is likely the culprit in this scenario. Have the funds been recovered? That’s not clear yet. In a press release, CEO Hanu Fejiro said recovery of the amount, while incomplete, would “go a long way to soothe Patricia users.” So far, the company claims it began refunding customers on November 20 as planned, but several customers have declined receiving any payment. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Features Quick Fire with Bemi Idowu Olugbeminiyi Idowu is the founder and managing director of Talking Drum Communications, a public relations and communications consultancy that supports companies innovating in Africa to shape perceptions and get more effective publicity for the work they are doing. He is an African Tech PR specialist, with extensive experience in leading and delivering successful media campaigns for a wide range of companies – from established global players to Africa-focussed start-ups. Olugbeminiyi Idowu What drew you to tech PR specifically? I’ve always been interested in seemingly complex things and the challenge of communicating the value of these things in a clear and meaningful way and this is a skillset that lends itself well to working in technology PR. My technology PR journey started with semiconductors, micro-components and data centres and it was only later that I started working on Software as a Service products and then startups. How do PR strategies differ for global players versus Africa-focused start-ups? PR at its core is basically the same everywhere. It is all about sharing and managing information to shape the perception of an entity. What differs is what the entity is trying to achieve and the context they are operating. For example, a health tech startup in Europe will typically be trying to tell a very different story from one operating in Africa and success will most likely look different. Our job is to understand what success looks like and do what we can to support our clients in making it happen. One major issue that impacts how PR is done in Africa is the depth of media platforms we currently have. For example, the African tech media landscape is still relatively young and everything falls under the “tech” umbrella. In other parts of the world, you get to work with specialist publications that focus entirely on Information Technology, security, fintech etc. This means you get to tell deeper stories and explore a wider range of narratives for campaigns. What’s the most challenging aspect of your job? I can be quite impatient so this means I am always in a hurry. Dealing with people who don’t have the same sense of urgency can be very frustrating. How do you measure the success of a media campaign? At Talking Drum, we are very particular about understanding what our clients are hoping to achieve with PR and being clear about whether or not PR is the most effective way to achieve that goal. For example, we get some clients talking about using a press release to reach a download target for their app. I’m always quick to say PR can support that goal but it may not be the most effective. We typically see the most impact and ROI from our work when it comes to attracting talent, securing investment, establishing a narrative, brand leadership and stuff like that. These are all results that you can effectively measure and directly link to public relations activities. What’s a common misconception about tech PR? The biggest misconception is that it is just about distributing press releases. I understand where this comes from as press releases are an essential tool in the PR tool kit but there is so much more. There are so many strategies and storytelling tactics that come with PR, as well as different services that a PR professional or business can offer to
Read MoreUSSD remains Africa’s most popular payment channel despite growing alternatives
Despite the growth of many payment channels such as apps and QR codes, Africans continue to use USSD more for making payments across banking and mobile money products. USSD-based transactions were used for mobile money and cross-domain transactions due to their straightforward and user-friendly interface that does not require a smartphone or internet connectivity. These USSD channels, which contributed 70% of instant payment channels as of June 2023, have been key in facilitating transactions that go beyond traditional mobile money services, including transactions between different financial institutions. In Ghana and Kenya, mobile money systems, particularly those using offline channels like USSD, are popular and supported by customers over card-based systems. This strong preference aligns with the percentage of people with mobile money accounts at 60% in Ghana and 69% in Kenya. However, while USSD is popular, it has been cited as a barrier to ease of use in payments. “Complex USSD menus and failed transactions are particularly detrimental to use,” said AfricaNenda, a digital payment strategy organisation in its inclusive instant payment systems (IIPS) report. Cross-domain instant payment systems facilitate interoperability between banks and non-banks, enabling transactions across both bank and mobile money accounts. While app channels follow USSD in terms of popularity, they introduce friction points like access to smartphones and internet connectivity, the adoption of which stands at 51% and 43.2% respectively. There is a growing acceptance of quick response (QR) codes as another channel. Cross-domain and bank IPS offer the broadest array of channels, whereas mobile money instant payments typically favour agent, USSD, and app channels. According to AfricanNenda, which released an instant payments systems (IPS) report in November 2023, this diversity shows the evolving financial services ecosystem in Africa. Per AfricaNenda, electronic money (e-money) instruments are also popular, with widespread support from mobile money and cross-domain instant payment systems. Cross-domain systems also use commercial money instruments like credit and debit electronic funds transfer (EFT), while bank IPS focus on credit EFT, with debit EFT as a secondary instrument. This diversity underscores the varied payment methods in use across different payment systems. “For an IPS to be a cross-domain system, it must have a switching capacity between commercial money instruments (such as debit electronic funds transfer (EFT), credit EFT, and domestic card instruments) and e-money instruments. Operators use one of two approaches to achieve a cross-domain IPS,” said AfricaNenda in the report. IIPS is important because the demand for instant digital payments is growing. In 2021, 50% of Sub-Saharan African adults used digital payments, up from 34% in 2017.
Read MoreFormer Google project CSquared seeks to connect Africa with $25 million raise
Lanre Kolade, CEO of CSquared, speaks to TechCabal about the company’s ambition to foster connectivity in Africa following its $25 million fundraising. CSquared, the pan-African technology infrastructure company which started as a Google project, has announced a $25 million capital injection. The equity funding was led by the Convergence Partners Digital Infrastructure Fund (CPDIF), International Finance Corporation (IFC), and the International Development Association’s (IDA) Private Sector Window Blended Finance Facility. Through the new funding, CPDIF will assume Google’s equity stake in CSquared. Launched as a project within Google in 2011, CSquared builds open-access broadband infrastructure and makes them available to local Internet Service Providers (ISPs) and mobile network operators (MNOs). The company is currently present in six markets across the continent: Uganda, Ghana, Liberia, Kenya, the Democratic Republic of Congo, and Togo. According to research by the Africa Development Bank, Africa requires an estimated total of $135 billion annually to finance infrastructural development. This means that until this amount is reached, Africa will still face an infrastructure gap which will slow down its digital development growth. Lanre Kolade, CSquared CEO, spoke to TechCabal about how the funding will contribute towards the company’s pan-African ambitions. In this interview*, Kolade outlines CSquared’s mission for pan-African infrastructure development, how the company plans to traverse the continent’s polylithic regulatory landscape, and how the new ownership structure will contribute towards its mission. TechCabal: Please share more on CSquared and the company’s mission. Lanre Kolade: The company started as a project within Google in 2011 and metamorphosed into CSquared in 2017 when Google brought in three other shareholders: Convergence Partners, Mitsui, and the IFC. We build open-access digital infrastructure that enables the deployment of broadband networks. These networks are then shared by multiple customers who are mostly ISPs, mobile network operators and anybody with a valid licence within our footprint. When we say broadband-enabled infrastructure, it’s just a yardstick. We also have wireless infrastructure networks that we build and have plans plan to build edge data centres. So everything that is going to enable broadband penetration on the continent is what we’re going into. In Uganda for example, we have an open-access Wi-Fi network which ISPs have access to so they don’t have to build their own network. Our mission is to build a digitally connected Africa. CSquared just raised $25 million in equity financing. How will this contribute towards the company’s mission? LK: This equity investment will help us accelerate the execution of our vision in existing markets, and also to go into new ones. What is important to realise is that Africa is a very vast continent, and the infrastructure deficit is huge. So this investment for CSquared is part of a bigger target which is to raise $120 million. We see $25 million as a confirmation from our current equity partners that they believe in this project. The company is currently present in six markets, most of these being what can be referred to as “pre-emerging”. Was this a deliberate strategy and are there plans to pursue bigger markets like Nigeria, Egypt, South Africa, etc? LK: The playbook for CSquared is actually the entire continent. Our current choice of markets is because we felt there were infrastructure deficits in those markets. We started in Uganda and then went to Ghana, Liberia, Togo the DRC. So are we looking at markets on the basis of size but also being able to add immediate value to our customers. If you look at the example markets like Egypt and South Africa, our impact will be more of a consolidation of assets. In Nigeria, we already have some M&A opportunities identified. We are also looking at Egypt and South Africa where we are exploring synergies with power utility companies to foster long-distance connectivity to connect rural areas. So to reiterate, our plan is pan-Africa but because capital is limited, we have to plan and strategise our expansion. The plan is to first consolidate and expand our reach in the markets we are currently in and then go to markets where the infrastructure is actually very deficient to make an impact. Pan-African expansion also comes with abiding by various regulatory requirements. How do you plan to achieve this as you scale across the continent? LK: From experience, I can say that a lot of the regulators and policymakers have understood the fact that if they don’t build this infrastructure within their localities, Africa will be digitally colonised. There is that realisation that our people are behind and the only way to leapfrog is to make infrastructure available. Some of these markets don’t even have the regulation that supports wholesale open access so we work with them in capacity building to get these frameworks built. There are cases where we partner with entities because commercially and economically, the investment wouldn’t be viable. Like in Liberia, we partnered with USAID to get grants to help us make that transaction a success. Remember, you don’t want to put infrastructure in the ground if it is not sustainable because it will just be a white elephant project. You want to be sustainable, you want it to add value to it in the form of economic and social impact. So I would say it’s becoming a bit easier with the red tape because all you have to explain the need for this infrastructure and why it reduces barriers of entry for competition and social services. In terms of your scaling roadmap, can you share more details on which markets you have sights on? LK: We will continue our consolidation in our existing markets. The DRC is a market that we got into about two years ago when we got our licence and we deployed infrastructure in Kinshasa. We are deploying infrastructure in five more metros within the country. We are also interested in stitching countries together; for example, enabling a customer to connect to somebody in the Gambia without having to go by the submarine cables. So those are the kinds of
Read MoreNigeria’s Central Bank unveils inflation template to guard against soaring prices
Yemi Cardoso, Nigeria’s Central Bank Governor, has unveiled a template to guard against soaring inflation that jumped for the tenth consecutive time in October 2023. The framework of the bank will ensure transparency, and maintain effective communication with the public regarding instances of price control and hikes, according to the apex bank’s chief. Cardoso made this announcement at the Chartered Institute of Bankers annual dinner on Friday in Lagos, as he addressed the public for the first time since his Senate confirmation. Having recently postponed the second crucial rate meeting since July, he stated that the Central Bank of Nigeria (CBN) had met its quota of rate meetings for the year 2023, even as inflation hit an 18-year high of 27% in October. KPMG predicted that Nigeria’s headline inflation will hit 30% by December 2023. Analysts have anticipated this meeting, hoping to make investment decisions following what they hear tonight. They also anticipated a rise in interest rates this month to help slow down inflation and protect banks from losing capital as inflation continues to rise. Cardoso did not state when the first rate hike meeting for 2023 will hold under his leadership. The governor also said that the bank had initiated foreign exchange frameworks to address the backlog of dollar demand that has weighed heavily on the naira. He said the payment of obligations will continue until they are completely cleared. The 66-year-old former Citibank executive directed that the banks minimum capital ratios be increased instead, in the hopes to meet the $1 trillion target set by the Federal Government. Despite acknowledging the importance of technology in the payment sector, Cardoso promised to checkmate the sector as some payment firms had been operating outside the activities approved for their licenses. The bank chief said that CBN has been mopping excess liquidity in the market via the introduction of Open Market Operation (OMO) bills. He also assured that the bank would no longer stray from its core mandate but work towards providing the right fiscal and monetary policies that would steer the nation forward.
Read MorePredicting potential winners of Nigeria’s emerging food delivery war
This article was contributed to TechCabal by Uche Aniche, co-founder of SSE Angel Network. In this post, I tried to predict the potential winners of Nigeria’s emerging food logistics space. I also lightly broached the conversation around Nigeria’s correct market sizing. Recently, Bolt, the Estonian ride-hailing company, announced it would be shutting down their food delivery operations in Nigeria. Some ecosystem leaders felt they were displaced by Chowdeck—a YC-backed startup in the space—founded by Femi Aluko a Paystack alumnus. I, on the other hand, thought it was the result of Nigeria’s recent economic challenges. Nigeria is currently grappling with the twin issues of acute currency depreciation and rising inflation. The ride-hailing space (where Bolt leads and mostly uses petrol-powered cars) has taken a big hit in the wake of the subsidy removal policy, which has led to high pump prices. Most of the food delivery services use petrol-powered motorbikes and bicycles. Glovo, Gokada (founded by the late Fahim Saleh) ACE Logistics and of course Chowdeck to mention just a few. I became aware of Chowdeck just before #StartupSouth8 (our annual conference) because they announced the launch of their operations in Port Harcourt on X (formerly Twitter). Subsequently, I started seeing their riders around the city and became interested in learning more about the company. I saw and read a series of Medium posts by Femi Aluko, the company’s founder. I found the thoughts interesting and even teased him on X. On my recent trip to Lagos for Zoholics (where we held a press conference to announce our community’s partnership with Zoho for Startups), I wanted something different from hotel food and it was a perfect opportunity to try Chowdeck’s service. I shared my experience in a post on X if you’d like to know how it was. 1643-1705From Order to Delivery900 Bucks delivery (Would have paid more – plus stress if I went myself) I read @chowdeck Founder’s Medium post and thought to give them a try. Congratulations pic.twitter.com/MJKVXa4BT6 — Uche #StartupSouth8 (@Havilah2) November 16, 2023 Meanwhile, I only learned about Glovo when Uche Anisiuba—a friend, an amazing animation entrepreneur, and a lecturer at the Pan Atlantic University—spoke so glowingly about them. I was surprised that there was another leader in that space. Surprisingly, on the other hand, he didn’t know Chowdeck, although he recalls seeing them and even had a faint idea of what their logo looks like. Then, on my way to the airport in Lagos, I was stunned by what I observed; I saw Glovo’s presence everywhere I turned. From Ikoyi to Anthony, from bikers going to deliver an order to riders fixing their bikes. Billboards also weren’t left out—many had 25% off meals from Chicken Republic screaming at you. I probably saw only two or three Chowdeck bikers on that route. Perhaps it’s particularly not their zone; but maybe it doesn’t matter, because Chowdeck got one more order and a customer who would probably continue to use it in Port Harcourt when necessary. The limits of myopic market sizing The airport in Port Harcourt is probably the third busiest airport in the country after Lagos and Abuja for obvious reasons. The airport is an international airport and Port Harcourt, aside from being the home of the hydrocarbon industry, could arguably be referred to as the capital of the South-South region. According to the Nigeria Bureau of Statistics, the top five airports in Nigeria in terms of the volume of passengers who passed through in the first half of 2018 were Lagos, Abuja, Port Harcourt, Kano, and Owerri. These five airports served over 89.39% of total passengers (6,707,195) in the first two quarters of 2018. Port Harcourt and Owerri combined served 10.6% of passengers. Additionally, Port Harcourt was the second-largest cargo destination in Nigeria in the same period. About ten (conservatively) different flights come into Port Harcourt daily from Lagos. If they conveyed an average of thirty passengers, this will translate to roughly 9,000 people who are possibly exposed to Glovo that won’t be able to use them in Port Harcourt and Ibadan (one of the other cities Chowdeck operates in). This is possibly why Uber lost its leadership position in Nigeria to Bolt. I remember the response I got in 2016 for asking Ebi Atawadi, then General Manager, West Africa at Uber, why she wasn’t looking to expand aggressively to other regions. It made me pray and search for another ride-hailing service to dethrone them. In 2018, Bolt launched in Owerri and then Port Harcourt following up with other cities like Enugu, Uyo, and Benin. Interestingly, I became the very first passenger to ride a Taxify (as they were called then) in Owerri. My visit in preparation for #StartupSouth4 coincided with their launch. I remember being called by the team to appreciate me for being their first rider only to run into the launch team at HotFM shortly before they left for Darling FM. They went on to partner with us for the conference that year. Bolt would go on to become a market leader in Nigeria ahead of Uber under the leadership of Uche Okafor— the famous Uche from Bolt. This experience and the story highlight the gross underestimation of the Nigerian market over what I believe is the limited understanding of our returnee founders and their foreign investors. I don’t see startups in the US dominating San Francisco/California claiming they have conquered the country and set eyes on international expansion. This is what’s currently happening in Africa, especially in Nigeria—the biggest economy with a population of over 200 million people. False equivalence, perhaps, especially when comparing GDPs but at least the full value of the market should be extracted in order to correct the warped narrative of the African market. I also don’t want to start the conversation of investors backing products that look like what they’re used to in their country forgetting Africa has fundamental challenges that spell opportunities and yet complain when their fantasies don’t pan out. This is why we
Read MoreVula wants to simplify fundraising for African startups. Here’s how.
This episode of Ask An Investor features Nicholas Rawhani, co-founder and CEO of fundraising platform Vula. He talks about how the platform is enabling fundraising for African startups and SMEs. Vula is a fundraising assistant that automates the fundraising process for founders. Users input their website URL and the AI-powered platform will craft an application for selected funding opportunities. Founded by Nicholas Rawhani and Alex Goff in 2022, Vula seeks to transform the fundraising process for the continent’s startups and SMEs at a time when raising funds is proving to be tough. In this episode of Ask An Investor, TechCabal talked to co-founder and CEO of Vula, Nicholas Rawhani, to get more details on how the platform works, what convenience it brings to the fundraising process, and what role platforms like Vula can play in boosting fundraising on the continent. TechCabal: Please share how Vula works. Nicholas Rawhani: Vula seeks to answer the question of how we can enable locally-owned African companies access to capital which will enable them to scale up. We spoke to more than 500 founders and realised that the process of applying for financing, whether it’s for a grant, pitching to VCs, or applying for a loan, had so much friction and headache. And it takes up so much time for founders that they stop being able to focus on running their business. So I (coming from a background of helping startups traverse through funding challenges) and my co-founder Alex (coming from this background of using big data to enable automation) started Vula. We realised that if we can start to parameterise the reality of companies and really get the information of companies to be a single source of truth, then we can train an AI for every company, and help that AI to basically be a relationship banker and investment banker for each and every company on the continent. Once it understands the company well enough, it can output what the best possible route for funding is and who can actually fund it. It also helps them apply for that funding. But on the other side of this funding gap are the financiers themselves. We had this assumption that development financial institutions, pan-African banks, and others would have sophisticated processes and systems for bringing in businesses and finding opportunities to finance them. But we found that that’s not the reality. So we realised that Vula needed to build for both sides of this funding gap. What makes this model amazing is that we can provide our startup and SME support tools for free to founders while making our revenues by helping these large financial institutions digitise their onboarding processes. How does Vula plan to catalyse investment into the continent? NR: In the USA there’s this concept called the Common Application where when you apply for university, you do one application, and it basically filters you out and pre-matches you to the universities that suit your profile. Vula brings that same convenience to founders. Searching for opportunities one by one, going through all these different applications, filling in the same questions, and getting the same documents, is all a schlep. We have this powerful platform that not only reduces this process but also helps them engage with financiers in the best way. We believe that by figuring out the best way to facilitate investment, we can 10x the amount of investment on the continent. What challenges have the Vula platform faced and how have you conquered them? NR: I’d say on the founder side, there haven’t really been challenges because we’re providing a free service that’s super futuristic to founders and, so far, they love it. I would say however that there is a bit of slowness which comes from the side of financial institutions. You can imagine how incredible the experience would be if you log in as a founder and immediately see all of the financing opportunities that lie before you. Historically in Africa, financial institutions have been financing very large corporations in mining , telecoms, and not really SMEs and startups. Our banks make a lot of their money just from transactional banking, but what they are starting to realise is that SME financing is extremely profitable. SME financing that takes place in Europe or in the US is the single most profitable sector of any banking segment, and our institutions are becoming more cognizant of that. So, in the short term, you’ve got banks who don’t really want to engage with SME financing that much, which slows our uptake, but then you have these really innovative banks and financial institutions who are playing the long game and seeing the value Vula adds. On the other hand, what opportunities are Vula looking to exploit in the funding facilitation market? NR: We have a very clear three-step plan. The first step is to enable this next generation of digital tooling for financial institutions and once we hit a critical mass of those and it basically becomes a marketplace, the amount of investment inflow will grow exponentially. In the 1950s, in the US, the way that mortgages started to become popular was that instead of the local bank handling all the mortgages, all the bank would do was package up clients who wanted mortgages, and then large institutional investors like JP Morgan would buy that package as a private equity asset. We want to be able to do the same thing for companies across Africa because they’re highly uncorrelated assets. And that’s super promising for our future. But right now, we just don’t have the tools or the data on the continent to make that a reality. So Vula also sees itself as the tool through which we can start to parameterise companies on the continent and create a united vision of what’s really going on, in order to help the very large institutional players in the US or in Europe be able to invest in African businesses as an asset class. And that’s
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