Exclusive: Payments giant Interswitch loses ₦30 billion to chargeback fraud, launches recovery process
Interswitch, the African payments and infrastructure giant, has lost as much as ₦30 billion after a system glitch allowed some merchants to fraudulently file and receive chargebacks, according to court documents seen by TechCabal and three people with direct knowledge of the situation. The company is now attempting to recover the funds through legal action, and it has reported the fraud to the Economic and Financial Crimes Commission (EFCC), Nigeria’s anti-money laundering agency. So far, Interswitch has recovered a little over ₦10 billion, according to one person with knowledge of the matter. Interswitch declined to comment for this story. Brett King, John Chaplin, Mitchell Elegbe, GMD Interswitch and Akeem Lawal, DCEO, Interswitch The court documents showed that Interswitch filed a motion at the courts on the suspected bank accounts. The payments giant has also requested that 54 banks place restrictions on hundreds of suspected bank accounts until the investigation and recovery process is complete, said a lawyer at a top Nigerian law firm with knowledge of the ongoing case. A clash between Nigerian banks and neobanks highlights financial industry’s complicated fraud problems The chargeback fraud dates back several years, two sources with knowledge of the situation told TechCabal, but they declined to share a specific timeline. The current incident, however, is directly linked to a few former and current Interswitch employees who likely exploited vulnerabilities in the company’s system, the sources said. At least one person has been arrested in connection with the incident, a source also said. Nigeria’s financial services industry has seen an increase in incidents of fraud in the last four years. Nigerian financial institutions have reported ₦159 billion ($201.5 million) lost to fraud cases since 2020, according to the Financial Institutions Training Centre (FITC).
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👨🏿🚀TechCabal Daily – MFS Africa rebrands to Onafriq
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Elon Musk wants to turn Twitter—or X—into a dating app, and a payments platform—the “everything” site. The CEO is following in MTN’s footsteps and wants to be everywhere you go. In what is sure to be a painful but fun journey for employees, the CEO, last week, told Twitter employees that X could replace banks within a year. It’s been one year since the Musk takeover and the platform is now worth half what Musk paid for it. The billionaire’s plan for profitability hasn’t taken off yet, but Musk is playing so many cards, one is sure to be an ace—or a joker. In today’s edition Swvl turns the tables MFS Africa rebrands to Onafriq AFEX raises $26.5 million SA’s WeWork distances itself from WeWork’s bankruptcy plans New domains are coming to South Africa The World Wide Web3 Opportunities Companies Swvl releases 2022 financial statement GIF source: Tenor Swvl is driving stealthily. The Dubai-based mobility company quietly filed its annual report for 2022 on October 31 after previously missing a NASDAQ deadline for submissions. Dig in: Swvl’s bus-hailing services for business customers grew rapidly in 2022, generating $37.9 million in revenue, a 132% increase from the previous year. This growth outpaced that of the company’s mass transit business, which brought in $13.6 million. Swvl booked a total of 45.7 million rides across both businesses in 2022, up from 25.9 million the year before. The company processed $56.5 million worth of ride tickets in 2022, compared to $38.4 million in 2021. The biggest takeaway from Swvl’s 2022 annual report is the company’s financial health. In 2021, Swvl reported total liabilities of $149 million, including $118 million in short-term convertible debt. By the end of 2022, it had successfully converted much of its debt obligations into equity, shaving liabilities worth more than $124 million. Swvl also raised $20 million in equity financing after it successfully sold 12.1 million shares at $1.65 per share in August 2022. The report represents a major turnaround for Swvl, which has endured a turbulent life as a publicly traded company. Lights out: While Swvl is yet to become profitable, its 2022 financials paint a picture of improved financial health. The changes in its financial results also alleviate much of its business pressures, giving it the breathing space it needs to become a stable and profitable enterprise. 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. Fintech MFS Africa rebrands to Onafriq Image source: Onafriq MFS Africa is having a makeover. The African fintech platform has rebranded to Onafriq. Why? Per CEO Dare Okoujou, the facelift was due to trademark challenges in the US. Aside from the challenges with the trademark, the Onafriq CEO says the group wanted a name that reflects its true ambition as the business had expanded beyond just mobile financial services and had become an omni-channel platform across Africa and beyond. Last year, Onafriq acquired US-based fintech company Global Technology Partners (GTP) for $34 million in cash and shares. Onafriq? The name draws inspiration from “Ona”, the Yoruba word for pathways and “Afrique,” the French word for Africa. With a hidden reference to IQ, the name also alludes to the startup’s goal of becoming a leader in intelligent African fintech. Zoom out: As MFS Africa rebrands as Onafriq, the fintech continues its journey to connect global and regional businesses, mobile network operators, money transfer operators, banks, fintech firms, global development organisations, and online and offline merchants. In November 2022, Onafriq obtained three licenses from the Bank of Uganda (BoU) one year after it acquired Beyonic, a Ugandan-based digital payments services provider for enterprises operating in Ghana, Tanzania, Kenya, and Rwanda. The evolution of agency banking in Africa In this longform Decode Fintech piece, Paystack explores agent networks in Africa, how they converge with SMEs, and what the future of agency banking means for how money moves across the continent. Read the blogpost. Funding AFEX raises $26.5 million L-R: Chris Chijiutomi, Managing Director and Head of Africa BII , Nick O’Donohoe; Chief Executive Officer – British International Investment, Ayodeji Balogun; Chief Executive Officer – AFEX, Benson Adenuga; Head of Office and Coverage Director, Nigeria and Mobolaji Adeoye; Chairman AFEX Nigeria-based agritech AFEX has secured $26.5 million in funding. Yesterday, the British International Investment (BII) signed a new partnership with the agritech that will see the investor commit $26.5 million to the company’s activities. Founded in 2014, AFEX presently trades over nine commodities across Nigeria, Kenya and Uganda. The company reportedly has 200 warehouses across these locations, and claims to process over $300 million worth of crops on its platform per annum. Moving forward: AFEX has BII’s investment for the development of 20 modern warehouses strategically located in Nigeria, Kenya, and Uganda. The new warehouses are expected to offer an additional storage capacity of 230,000 metric tons for AFEX. This expanded storage infrastructure will make it possible for approximately 200,000 more farmers to access cost-effective storage solutions and optimise their crop sales. The potential impact is also noteworthy, with the possibility of boosting farmer incomes by over 200%. Zoom out: So far, AFEX is hitting its goals. The company also doubled down on its plans for an African expansion with CEO Ayodeji Balogun stating that the company has plans to expand to seven more countries including Ghana, Côte d’Ivoire and Ethiopia by 2024. To meet this goal, Balogun, in May, announced the company’s plans to raise $65 million which would help it boost its storage capacity to 1 million tons. Companies SA’s WeWork distances itself from WeWork’s bankruptcy plans GIF source: GIPHY The South African franchise of WeWork has announced that its operations are independent of WeWork Global’s bankruptcy filing in the US. What’s happening? On Wednesday evening, Reuters reported that global coworking space provider WeWork Global was planning to
Read MoreWeWork South Africa distances itself from WeWork Global’s bankruptcy
WeWork South Africa is distancing itself from WeWork Global’s bankruptcy filing, stating to TechCabal that it is in no way affiliated with the company. WeWork South Africa has stated that it won’t be affected by WeWork Global’s Chapter 11 bankruptcy filing in the US. In March, WeWork entered a franchise “partnership” with SiSebenza, a pan-African real estate investor, which gave SiSebenza the exclusive right to operate WeWork’s existing locations in South Africa. The deal also granted SiSebenza exclusive rights to grow and operate the WeWork franchise in Ghana, Kenya, Mauritius and Nigeria. Although the initial agreement was referred to by both parties as a partnership, WeWork SA has stated in a communication to TechCabal that it is in no way affiliated with WeWork Global. It also added that it has 100% ownership of WeWork SA. WeWork expanding its Africa footprint through partnership with SiSebenza “We want to emphasise that WeWork South Africa operates as an entirely separate entity, with full ownership by SiSebenza, and no affiliation with WeWork Global. This means that the recent global actions undertaken by WeWork Global will have no impact on our local operations in South Africa,” the company said in a statement to TechCabal. WeWork opened its first South Africa location in 2019 at WeWork The Link in Rosebank, Johannesburg, followed by WeWork 80 Strand in Cape Town and WeWork 155 West Street in Sandton, Johannesburg. It appears most franchisees of WeWork Global are distancing themselves from the troubled company. WeWork India also assumed the same stance as WeWork South Africa about the bankruptcy.
Read MoreUS-listed Swvl quietly releases long-delayed 2022 financial statement as it engineers its way to financial safety
Swvl, the Dubai-based mobility company, quietly filed its annual report for 2022 on Oct. 31 after previously missing a NASDAQ deadline for submissions for publicly listed companies on the stock exchange. The long-anticipated report provides extensive details on the health of the Cairo-born company and its financial performance as it chases profitability and sustainability with its novel bus-hailing model in Africa and the Middle East. In 2022, the mobility company doubled its revenue to $51.5 million, up from $25.6 million in the previous year. Swvl posted its first group gross profit, $2.75 million, largely because its revenue grew faster than its basic cost of operating its fleet of buses. The company’s cost of sales rose 55% to $48.7 million compared to the previous year. The report represents a major turnaround for Swvl, which has endured a turbulent life as a publicly traded company. The company made its stock market debut in March 2022 when it merged with Queen’s Gambit Growth Capital, a special purpose acquisition company (SPAC), trading at $10 per share at a $1.5 billion valuation. But its stock collapsed afterwards, trading below $1 for an extended period as NASDAQ threatened to delist the company if its share price didn’t exit penny stock levels. Swvl completed a reverse stock split, which effectively consolidated its shares, converting 25 units into 1. That action offered some relief, but its share price has never returned to its SPAC listing amount. By late 2022, Swvl began making major changes to its business, including layoffs of 450 employees and shutting down operations in several countries, which radically impacted its financial information compared to details it reported by June 2022. Between mid-2021 and April 2022, the company announced at least four acquisitions as it expanded to new markets in Europe and Latin America. It acquired Shotl, a mass transit platform that operates on three continents; it also bought a controlling stake in Viapool which served Argentina and Chile; in June 2022, Swvl took over German-based Blitz B22-203 GmbH; and in April 2022, it took a controlling stake in Volt Lines, a Turkish company. And in August 2022, it acquired Latin American company Urbvan in an all-share deal. Following, these acquisitions, by mid-2022, Swvl posted half-year revenue of $40.7 million across 20 countries, nearly three times its income for the same period in 2021. But by the end of 2022, Swvl had successfully reversed most of its acquisitions and shut down Blitz B22-203 GmbH. And in September, it sold Urbvan for $12 million. Unwinding these deals significantly changed the company’s situation, causing it to reformulate its financial statements and change previous business projections. The reversals also helped it reduce liability exposure related to some of these acquisitions, including payments to their suppliers. As a company, Swvl reported strong growth thanks to its fast-growing bus-hailing services to business customers. In 2022, it raked in $37.9 million from business customers, a 132% jump from the previous year, compared to its mass transit services which reported $13.6 million. Overall, Swvl booked 45.7 million rides across both businesses last year, up from 25.9 million in 2021. The company claimed it processed $56.5 million worth of ride tickets in 2022, compared to $38.4 million the year before. Swvl said its buses were full 96% of the time last year, with an average ticket per seat of $1.23. Despite its rising revenue and financial changes from reversing previous acquisitions, Swvl, whose CEO, Mostafa Kandil, earns a basic salary of $650,000 a year, remains a loss-making enterprise. Swvl is yet to turn a profit and in 2022 it posted operating losses of $82.4 million, a 6.5% decline compared to the previous year. The company attributed much of its operating expenses to salaries and fees related to one-time activities, namely its acquisition reversals and fees from its SPAC listing in March last year. The biggest takeaway from Swvl’s 2022 annual report is the company’s financial health. Before making drastic changes to its business last year, Swvl reported total liabilities of $149 million in 2021, including $118 million in short-term convertible debt. By the end of 2022, it had successfully converted much of its debt obligations into equity, shaving liabilities worth more than $124 million. Swvl also raked in $20 million in equity financing after it successfully sold 12.1 million shares at $1.65 per share in August 2022. These changes have significantly improved Swvl’s financial situation and it alleviates much of its business pressures until it becomes a stable and profitable enterprise. However, high-profile exits including the replacement of its chief financial officer and resignations of two board members over the last few months might raise some eyebrows as Swvl’s CEO stabilizes the company’s operations.
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🚀Entering Tech #46: How Kwarabuild helps newbies
Its the tech community for everyone in North Central Nigeria. 1 || November || 2023 View in Browser Brought to you by Issue #46 How Kwarabuild helps newbies Share this newsletter Greetings ET people If you’d like to get short bites of #EnteringTech, here’s a reminder that we now have 1-minute shorts available. So if you’ve missed past career editions, check out our YouTube channel or Instagram page where we’re posting the Entering Tech shorts. Timi Odueso Tech trivia Some tech trivia to get the brain juices flowing. Which company developed the first commercial personal computer? What is the name of the first smartphone operating system? What is Kwarabuild? In 2018, a group of friends gathered to discuss the tech ecosystem in Kwara, a state in North-Central Nigeria. They realised that there was a lack of tech-related activities and a sense of community for tech enthusiasts. During our conversation, someone mentioned the word “build” which initially seemed like a random suggestion. The team didn’t immediately connect it to the state until it struck them “Kwarabuild” It was at the same time the team came up with a simple tagline, “Building the Tech Ecosystem”. The team says its passion for this name was undeniable, and it embarked on a mission to curate programmes that would benefit both techies and non-techies in its local community. Their primary goal was to provide resources and guidance to underserved individuals and communities in Kwara State. They organised numerous technical and non-technical meetups to educate community members. Within its first three months, the community grew from zero to over 1,000 members, with the support of more than 20 dedicated volunteers. As positive feedback poured in from various members, so did requests for support that the teams struggled to meet due to limited resources. This inspired Kwarabuild to host a large gathering to showcase its community and attract more investors to Kwara State. Kwara Build Founders (L-R): Mohammed Yayah, Ibrahim Zulkifli, Adeola Olaleye, Jamiu Abdullateef, Omiyale Akolade Dare, and Kamaldeen Kehinde On October 1, 2018, the community hosted its inaugural Tech Conference, which welcomed over 1,300+ attendees. Participants ranged from students and tech entrepreneurs to educators and technologists. This event marked a significant milestone for us. Today, the KwaraBuild Tech Community stands as a leading global association for tech enthusiasts and developers in Kwara State and beyond. The team is deeply passionate about building and nurturing the tech ecosystem in its state and the nation as a whole. It firmly believes in the transformative power of events and human connections to educate youth about the potential of technology in ecosystem development and future foresight. Simplify with Zido Simplify your supply chain with Zido. Start here. How Kwarabuild works Tech enthusiasts, designers, developers, data analysts and anyone interested in starting a career in tech 10,000+ Newsletter Subscribers Nil. Absolutely free Telegram Kwarabuild’s top three programmes serve as the community’s driving force, motivating members to push the boundaries of what they can achieve. These programmes include: A. Career In Tech: Kwarabuild’s “Career In Tech” programme is dedicated to bringing STEM education into the classroom. It’s a platform designed to offer access to tech education for individuals from all backgrounds. So far, it has trained over 4,500 students. B. Startup Build: ”Startup Build” brings together visionaries and doers who are passionate about development and growth. This programme encompasses startup education, business connections, fundraising opportunities, and knowledge sharing. So far, KwaraBuild has successfully connected three startups to essential funding. c. Women In Tech: KBWomenintech is one of the community’s initiatives aimed at empowering women and girls with tech skills. It’s about building a strong global community where women can collaborate, support one another, and change the world. It’s network now includes over 2,000 female tech enthusiasts. Kwara Build Women in Tech These programmes are at the core of Kwarabuild’s mission to continue making a positive impact on its community and beyond. If you’re wondering what the benefits of joining the Kwarabuild Tech Community are, here are a few: 1. Skill Development: Members have access to various skill-building opportunities, workshops, and educational resources. Whether you’re a beginner or an experienced professional, Kwarabuild offers a platform for continuous learning and growth. The programme has featured the likes of Adewale Adisa and Maya Famodu. 2. Networking: Kwarabuild provides a vibrant community where you can connect with like-minded individuals, tech experts, entrepreneurs, and potential collaborators. Networking within the community can lead to exciting career opportunities, partnerships, and friendships. KBTC 2022 3. Career Opportunities: Kwarabuild actively promotes career advancement and provides resources to help members land job opportunities, internships, and freelance projects in the tech industry. The community’s wide reach and connections can open doors to fulfilling tech careers. 4. Impact and Contribution: By joining Kwarabuild, you become part of a community committed to making a positive impact on Kwara State’s tech ecosystem. You have the opportunity to contribute to community projects, educational initiatives, and events that benefit both local and global tech enthusiasts. 5. Annual Kwarabuild Tech Conference: As a member, you gain exclusive access to the annual Kwarabuild Tech Conference, a premier event that features renowned speakers, workshops, and the latest industry insights. It’s an excellent opportunity to expand your knowledge, connect with tech leaders, and stay updated on the latest trends in the tech world. What people say about Kwarabuild Speaking of community, here’s what a few people have to say about Kwarabuild: Looking ahead, Kwarabuild says it is now focused on a critical mission—empowering its members and a substantial number of young people in Kwara, including both students and non-students, to acquire the essential skills that will enhance their employability. The community has already collaborated with VMware through the VirtualizeAfrica programme to train and select young talents in cloud computing and virtualization. It has also established partnerships with Propel for talent placement and Ingressive For Good for talent upskilling. Join Kwarabuild’s Telegram community to access valuable, free resources that will guide you on your tech career journey. You can also find them on X,
Read MoreSA tech sees boost in investment from private equity firms
Private equity firms in South Africa are showing love to the country’s tech sector, with investments into tech companies on the surge. According to data from the 2023 Southern Africa Venture Capital Association report, in 2022, 11% of South Africa’s private equity (PE) firms investments went to technology companies, compared to only 3% in 2021. This represents the highest investment of any sector by the country’s PE firms. “Information technology increased from the ninth most attractive sector in 2021 to the tied top sector in 2022,” the report states. And this is all for good reason. Between 2020-2022, technology companies recorded the most revenue growth, with 52% of portfolio companies registering a “rapid growth” in revenues. However, 29% of tech companies also recorded a decline in revenues. Over the years, compared to its VC counterpart, South Africa’s PE sector has raised substantial amounts from pension funds, government, aid agencies and DFIs, with 2022 total assets under management totaling R213 billion (~$11 billion). For comparison, VC funds only raised $555 million in the same period. Will private equity cushion the VC downturn? With venture capital inflow into South Africa having declined over the last few years, the fact that PE firms are paying attention to the sector is promising. Additionally, most PE investments go to expansion and development stage companies, a demographic that has traditionally struggled to attract VC investment. Over the years, although VC firms like Knife Capital have made efforts to avail late-stage capital into the ecosystem, there is still large room for more investments, making this focus by PE firms perhaps a welcome development. “Despite the increasing availability of deal-flow, there remains a significant follow-on financing gap for high-growth local startups with proven traction,” Keet van Zyl, partner at Knife Capital, told TechCabal. Sometimes, this lack of late-stage capital has led startups to exit too early as they face the doom prospect of running out of runway. “Late-stage venture capital has always been hard to come by in South Africa. For most founders, if you cannot raise, it might be better to sell before you run out of runway,” says Clive Butkow, former CEO of VC firm Kalon Ventures. With the country’s private equity market projected to assume a positive growth trajectory over the next few years, tech companies will be hoping that fund managers continue to pay attention to and write cheques for the sector, especially at a time when the VC market is going through a decline.
Read MoreKenyans pushback against KRA’s plan to tax personal items brought in by travelers
Kenyans have been protesting about harassment by KRA tax officials at airports. Now, they have to declare their items every time they travel, else pay tax for them whenever they return. The Kenya Revenue Authority (KRA) is facing criticism for a controversial directive that imposes taxes on personal items, whether new or used, valued at over $500 that travelers bring in. In a now-deleted post, KRA said, “All goods, whether new or used, are subject to taxation. Remember when travelling, you will be allowed to carry personal or household items worth $500 (KES 75,350) and below. Anything above the amount shall be subject to tax.” Kenyans on X (formerly Twitter) and other social media platforms and lawmakers have joined the protest and have accused some KRA of using the directive to harass tourists. According to some lawmakers, KRA needs a more tourist-friendly approach to simplify luggage declaration and duty payment for passengers arriving in Kenya. KRA has since issued a note clarifying its customs and border control measures outlined in the East Africa Community Customs Management Act (EACCMA), 2004. According to the tax authority, all goods are subject to customs duty. “However, passengers have a concession of $500 applicable only to goods for personal and/or household use. Passengers are also exempt on their used personal effects,” KRA clarified in the note. This applies to goods that are either imported or newly acquired. However, it is unclear whether KRA Customs officials will distinguish between items that have been newly purchased abroad and those that are older. KRA added that customs duty is imposed at the point of entry on taxable goods. If the allowable limits are exceeded, then the imported items are subject to import duty, value added tax, excise duty, and other relevant charges. These duties are calculated according to the customs value of the item, following the guidelines established by existing laws such as the EACCMA, 2004. Travelers will be compelled to declare their items before travel and will be forced to pay taxes for undeclared items. “It is important that passengers declare the actual price of the item… All passengers are subject to make declarations to the customs officer,” KRA says. Since the election of Ruto last year, the government has talked about a need to seal tax leaks and instituted changes to how electronic items such as smartphones are taxed. The tax institution seeks to collect KES 2.768 trillion ($18.3 billion) by the end of FY 2023/2024. Owing to the ongoing bitter debate about further harassment at airports, lawmakers and citizens are urging KRA to provide additional clarity on the issue to protect Kenyans from potentially losing their belongings when they travel abroad and return.
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👨🏿🚀TechCabal Daily – Eskom reports $1.2 billion loss
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy new month We’re starting the month off on a good note. TechCabal hit 1 million monthly web users in October! We’ve 3x-ed the number of readers we had in January, and subtle brag, we’ve done it with a team of eight reporters and six editors who cover several sectors and regions. Here’s everything you need to know about our work this year. In today’s edition Eskom records R24 billion ($1.2billion) loss LastPass data breach costs $4.4 million in crypto theft Maisha Meds secures $5.25 million from USAID French footballers back Star News in $3 million pre-Series A The World Wide Web3 Opportunities Companies Eskom records R24 billion ($1.2billion) loss Image source: Eskom Eskom’s financial losses are mounting. The South African power generation company recorded losses worth R24 billion ($1.2 billion) for the 2022/2023 financial year, according to its financial statements. The new figures represent double of what the power company lost in 2021/2022—the company lost R11 billion ($588 million) in the 2021/2022 financial year. Reason for the loss? Eskom’s decreasing generation capacity is the chief reason for its financial loss. This year alone, South Africans have experienced some of the worst load shedding on record—100 days—with power outages lasting for up to 12 hours per day at some stages. Asides the low electricity capacity, Eskom’s acting CEO, Calib Cassim, blames the financial loss on Increased municipal debt and losses due to criminal activity. No more excuses: Despite Eskom’s record loss, Cassim asserts that this is the last of such losses for the group. The acting CEO is rolling his sleeves up and says that “the time for excuses is over”. The CEO is banking on the government’s proposed R66 billion (US$1.6 billion) bail-out fund to stabilise the group in the 2025 financial year. Zoom out: It remains to be seen how Cassim and his team turn the tide around for Eskom. However, it remains critical for the power generating company to get a grip on its financials, and getting a new fancy logo—which could cost the company a lot—may not be the way to go. 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. Cybersecurity LastPass data breach results in additional $4.4 million crypto theft Image source: Google LastPass has been living through a never-ending crypto-heist. The American cloud-based password management platform has suffered an additional loss of $4.4 million in cryptocurrency due to a data breach that occurred in August 2022. ICYMI: LastPass suffered a data breach in August 2022 when an employee’s credentials were stolen. The breach was initially downplayed by the company but in December 2022, LastPass revealed that the hacker had stolen encrypted copies of customer passwords and other sensitive data, as well as a backup of encrypted customer vault data. The ongoing crisis led to a class-action lawsuit filed against LastPass in January 2023, with victims claiming that the August 2022 breach had cost them around $53,000 worth of bitcoin. According to a report in September 2023, some LastPass customer vaults had been cracked, resulting in over $35 million in losses for approximately 150 victims. More wallets compromised: ZachXBT, a crypto fraud researcher who has been closely monitoring the situation, shared on X that hackers, on October 25, 2023, had stolen another $4.4 million in crypto from 25+ LastPass data breach victims. Despite this dire situation, LastPass asserts that only customers possess the master password necessary to decrypt their password vaults. However, it has issued a warning for users with weak master passwords to consider resetting them promptly to thwart potential brute force attacks by hackers. Zoom out: ZachXBT’s findings suggest that the hackers are cracking the stolen password vaults to access stored cryptocurrency credentials, keys, and passphrases. Once these barriers are breached, the hackers can transfer funds from the victims’ wallets to their own devices. The evolution of agency banking in Africa In this longform Decode Fintech piece, Paystack explores agent networks in Africa, how they converge with SMEs, and what the future of agency banking means for how money moves across the continent. Read the blogpost. Funding Maisha Meds secures $5.25 million from USAID Image source: Maisha Meds Maisha Meds wants to expand access to high-quality Malaria care in Africa. The Kenyan-based digital pharmacy network has received $5.25 million in funding from the United States Agency for International Development (USAID) Development Innovation Ventures (DIV). The funding, which will be spread over three years, is a critical step towards supporting Maisha Meds’ mission to expand access to affordable, high-quality malaria care across Africa. Empowering rural healthcare providers: The Maisha Meds software platform ensures that rural pharmacists and clinicians effectively purchase quality affordable medicines and extends subsidies to patients. With additional support from the Bill & Melinda Gates Foundation, Maisha Meds aims to expand its mobile software to 7,500 pharmacies and clinics by the end of the grant period, delivering subsidised care to nearly a million patients. Established in 2017, Maisha Meds operates across Kenya, Uganda, Tanzania, Nigeria, and Zambia. Over the years, it has expanded its suite of software products and now supports more than 4 million patient encounters annually across its market. In June 2022, the Maisha Meds digital platform reached 1,000 pharmacies across six countries across sub-Saharan Africa. Funding French footballers back Star News in $3 million pre-Series A Jules Koundé, Aurélien Tchouameni, and Mike Maignan. Image source: Getty Images These French football players are teaming up to help African creators earn more money. Jules Koundé, Aurélien Tchouameni, and Mike Maignan have all contributed to a $3 million pre-Series A round for Star News Mobile, a creator monetisation platform for Africans. The fund round was led by Janngo Capital. Launched in 2017 by Guy Kamgaing, Star News offers monetisation options for African content creators through distribution partnerships with major telecommunications operators like MTN and Orange. The five-year-old
Read MoreTechCabal hits one million web users – the largest audience in its ten-year history
TechCabal has now crossed one million monthly web users in October, the largest monthly audience size in our ten-year history. We saw exponential growth in 2023, tripling our number of readers from 390,000 in January. Since its launch in 2013, TechCabal has been committed to telling the most audacious stories across the African tech ecosystem and has become one of the most prominent voices in the space. “For over ten years now, we’ve been dedicated to chronicling the business and impact of tech in Africa, the players, the markets, the ingenuity and the challenges,” said Tomiwa Aladekomo, CEO of Big Cabal Media. “I’m grateful to the rapidly growing audience that trusts us to keep them up to date with what’s happening in this increasingly important industry.” This year, we broke some of the biggest stories across tech and business and were awarded for them. We won the awards for Best New Media Platform and Best Newsletter for our newsletter, TC Daily, at the StartupSouth Awards and also won the award for gender-balanced reporting at the ReportHER Awards for our coverage of women in the tech ecosystem. The company doubled down on its mission to lead compelling conversations on the impact of business and tech in Africa in order to foster growth and innovation, starting with the introduction of new team members like Muyiwa Olowogboyega, our newsroom editor. We’ve expanded the scope of our stories and business reporters like Joseph Olaoluwa, and Abraham Augustine have written high-impact analysis on regulation, venture capital and telecoms. We’ve also expanded our coverage of certain regions like East and Francophone Africa, with the addition of Kenn Abuya from Kenya and our partnerships with players like EcoBank in Francophone Africa. We have reported key stories across various markets in Africa. In Nigeria, for instance, we’ve extensively covered how startups and VCs are thinking about funding in the coming years. We also looked into the impressive ways that local founders are contributing to the growth of the film industry. From Southern Africa, Showmax sealed a partnership with NBCUniversal’s Peacock to bring in new content and streaming technology to Showmax. The MultiChoice-owned platform also axed its premium service, Showmax Pro for DStv Stream. Going east, TechCabal broke the story about Sendy going into administration after a tough logistics business environment. Earlier, we extensively covered the WorldCoin fiasco in Kenya, where the company was registered as a data processor but was nonetheless prevented from scanning people’s irises in exchange for 25 tokens. Finally, from the northern part of the continent, our reporter, Abraham, covered how Egyptian fintechs are collaborating with traditional banks to provide more innovative financial services and the interesting ways that players in the Tunisian tech ecosystem are navigating a talent problem. Ephraim Modise, TechCabal’s Southern Africa reporter, shares that he joined the publication in June 2022 with a responsibility to build out its Southern Africa audience and is glad to see it attain this milestone. “A huge appreciation to the business and editorial leadership for crafting strategies which helped us get here and to the rest of the team for their incredibly impactful work across other regions. I am beyond elated to see the publication reaching such a milestone and the work that I so love doing contributing to the milestone,” he shared. “It can only get better from here and I’m proud to be part of the journey so far,” said Abubakar Idris, a business journalist and a member of TechCabal’s advisory board. “It is a watershed moment for the industry and a reminder that we’ve barely scratched the surface of what’s possible in Africa with its large population and equally bulging diaspora.” In 2022, the parent company of TechCabal, Big Cabal Media raised $2.3 million to expand its various digital products. TechCabal currently has a newsroom of eight staff and six editors, who cover vastly different, yet relevant stories daily.
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Next Wave: Africa’s mobile revolution has hit a plateau
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 29 October 2023 The new goal for African telcos is becoming technology platforms not just old goody mobile carriers. Twenty-five years ago when Mohammed Ibrahim was setting up MSI Cellular Investments, the mobile network provider better known as Celtel, in Africa, few people thought mobile phones had a future in Africa. But the Doubting Thomases were wrong and the few hardy believers like Mo were right. From a few thousand telephone connections in the late 1990s, sub-Saharan Africa has today become the epicentre of the GSM mobile phone revolution. Today, the mobile calling boom has now cratered as internet services displace traditional voice calls and SMS. In its place, a small but dynamic market of software solutions and businesses is growing. This market—and offspring of the mobile calling boom—is mostly based on using internet-dependent software tools at the personal and corporate levels. Most people in Africa do not only want their mobile devices to send texts and make calls; their devices are becoming business tools that need the internet. Article continues after this ad The National Science Week (NSW) is a hallmark event in Uganda’s calendar, celebrated every year to honor Science, Technology, and Innovation (STI). The event will feature a dedicated Investor Summit, bringing together some of the world’s leading pan African Venture Capitalists, Investors, and Startups.. Find out how you can participate In their latest report launched during this month’s Mobile World Congress in Kigali, the GSM Association (GSMA) predict that 200 million new mobile subscribers will be added to African mobile carrier networks by 2030. Ethiopia and Nigeria will contribute the bulk (about 33%) of these new subscribers. Two hundred million new subscribers is a big number. But, assuming it refers to subscribers in previously unreached areas, then it doesn’t quite have the ring of significance it might have once had just five years ago because the bulk of Africa’s revenue-capable market in cities and urban areas appears to have already been captured today. <!–Chart section 1 A sample of African startups that have gone from raise to bust. | Infographic by Victoria Olaonipekun, TC Insights A new focus on the demand gap over the usage gap Broadband internet coverage now reaches 85% of Africa’s population, GSMA analysts write, but a lot of the available capacity is not being used, partly because the costs of internet packages remain high. This creates a sad loop. Internet costs are partly high because only a small number of people use and pay for it. As a result, more people cannot pay for it because it is expensive. At the same time, in areas where usage is significantly high, telcos face an inability to meet demand with reliable service. Faced with this demand gap, it is easy to see why telcos might prefer to focus on developed markets where they can fully and reliably satisfy demand. Given that telco customers in developed markets represent the bulk of revenue, it is also easy to see why telcos will pay attention to how they can earn more revenue from the activities that they enable. So instead of simply providing the internet that allows a shopkeeper to make bank transfers to vendors, a telco may want to also be the platform where those financial transactions happen. To be honest, that telcos are fascinated with stuff outside of their core remit is not completely new. It is similar to how telco operators and leadership milked value-added services (VAS) like caller tunes and SMS dating in the days that followed the start of the mobile calling boom. But the VAS market of yesteryears was too small and quickly eroded. The emerging VAS market (think multiple fintech products, enterprise IT services, and so on) will consist of quasi-independent products that directly go after complimenting or even wildly unconnected software or IT servicing market opportunities. Partner Content: Over 200 Leading African and Global Organizations Set to Convene at Africa Fintech Summit Lusaka, Zambia, this November This trend is something that has received passing commentary. But it deserves more attention, especially for Africa’s sprawling digital market where everything from fintech startups to delivery drone companies and WhatsApp-based edtech services are competing for business customers and consumers. Enter the age of super telcos Building technology platforms beyond mobile carrier network services was at the core of MTN Group’s 2022 rebrand as a technology company. Said Bernie Samuels, MTN’s group head of marketing: “We are living in a completely different world. We were born into an analogue era and our customers today live in the social and digital space. Quite frankly, we don’t want to be left behind. Our competitor set has changed. We don’t only compete with the telcos down the road, we are competing with the biggest digital brands across the planet, so it’s a battle for mind share.” What WorldRemit (remittances) wants is what MTN Ghana wants. And the insuretech that is rapidly growing in Zambia may find itself going up against a Zain version of the same offering, hypotethically speaking. Article continues after this ad If you have a passion for technology, a drive to solve real-life problems, and azeal for creative thinking, then the Payaza Hackathon 2.0 is for you. JWin up to $5,000 for your game-changing solutions and innovative technologies. Learn more here A cursory look through the annual filings of some of Africa’s largest telecom/mobile carrier networks bears my hypothesis out. In the latest Integrated Report 2023, Vodacom self-describes as “a leading and purpose-led African connectivity, digital and financial services company”. MTN’s strategic priorities for 2025 include building the largest and most valuable platforms, by which it is referring to its
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