East Africa records 51 private equity exits in a decade
East Africa also reported 478 private equity deals and closed $8.6 billion in private equity over the same period. In the last 10 years, there have been 51 private equity exits out of 427 investments (and 478 private equity deals worth $8.6 billion) in the East African market, per the East Africa Venture Capital Association (EAVCA). The region recorded a jump in exit activity during FY 2022, marking the highest numbers in a decade. The financial services sector saw 14 exits, followed by healthcare and energy, with nine and seven exits, respectively. Kenya led the pack with 36 exits per country, followed by Uganda at eight and Rwanda with three. Tanzania and Ethiopia recorded two and one exit, respectively. Private equity exits in East Africa. Image source, EAVCA READ MORE: Understanding key concepts in private equity However, these are the reported numbers, with a high probability that the exits could be higher as some are not officially reported or disclosed. “Whilst the data suggests only 51 exits over the last decade, anecdotal evidence suggests a higher number on account of investments that are exited to founders and management and not disclosed,” EAVCA said in a statement. “The data also does not capture investments that are exited via forced liquidation.” Projections show that 2023 will surpass this performance. This surge in exits is a promising sign for the coming five years as investments made in the past seven years reach maturity, and fund cycles conclude. These exits are becoming crucial for first-time fund managers seeking follow-on funds from predominantly development finance institutions (DFI)-focused limited partners in the region. READ MORE: Next Wave: Should VC be PE? EACVA clarified: “Excluding outliers, the average holding period in the industry has been [about] 7 years for exits recorded between FY 2014 and H1 2023, with a general reducing trend up until the COVID period. These are remarkable numbers, given the turbulent macro, geopolitical and weather-related events in the region during the period under review and their impact on profitability, which then influences valuation.” How private equity investors have been exiting the market Per the EAVCA report, private equity investors mainly exit through three avenues: selling to trade players, secondary buyouts, and management buyouts (MBOs). Only one IPO exit occurred during the decade. Often, sales to trade players, mainly from Europe and Asia, have been the most popular exit route. However, the exit landscape is evolving, with secondary buyouts surpassing trade player sales and buyers expanding to include pan-African and regional entities. “The increase in secondary buyouts is recent and driven by several factors including a loosening of restrictions on secondary buyouts and an increase in the number of funds that will now execute majority transactions, and furthermore, secondary capital only transactions.” READ MORE: Private equity investors predict entrepreneurial boom in Africa The complexity of private equity exits Private equity exits are naturally complex, often marked by multiple factors. The complexities stem from various exit options, including trade sales, IPOs, and secondary buyouts, each demanding a unique strategy. Timing is key, as choosing the optimal moment to exit involves a delicate balance between maximising returns and minimising risks. “Private equity exits are hugely topical in the private equity community in East Africa both for their complexity and somewhat elusive nature as evidenced by the contrast in publicly disclosed private equity primary (money-in) transactions as compared to private equity exits,” EAVCA added in a report. Financial engineering, such as leveraged buyouts, adds another layer of complexity, which calls for careful management during exits. That’s not all, as regulatory compliance and due diligence requirements influence exit strategies, particularly in cases involving public offerings. Other factors that make private exits difficult include negotiating terms, tax considerations, managing leadership transitions, and aligning with market conditions. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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How might Nigeria leverage digital infrastructure for digital public service delivery?
This article is contributed to TechCabal by Blessing Ajimoti, Public Digital’s programme manager on the Nigeria Digital Capabilities programme. On the margins of the G20 Summit held in India early this month, Bosun Tijani, Nigeria’s minister of communications, innovation and digital economy met with leaders of India’s public services’ digital transformation. He announced a plan to sign an MoU with India “to leverage their experience helping the Indian government build scalable digital services” and that he will be “hosting them at a workshop in Abuja on designing Digital Public Infrastructure for government services”. This is positive news for Nigeria as an accelerated approach to the design and delivery of digital government services will enable the country’s progression towards the building of other digital capabilities in government. What are Digital Public Infrastructure (DPIs)? Several definitions exist, but DPIs are essentially the foundations on which digital activities are built. Similar to the way that physical infrastructure such as roads enable people’s faster travel with automobiles, or the existence of telecommunications masts enabling quicker real-time communication electronically, DPIs enable digital approaches to activities, in this case, the delivery of services by different stakeholders. DPIs are the infrastructure on which digital transformation is built. They are not just conceived as technology; they are thought of in terms of scale, and the interests and needs of the public. DPIs may come into being through the efforts of government, the private sector and sometimes non-profits. Governments, depending on their financial and technical capabilities or preferences, could either build theirs or adapt existing ones. Some existing ones that can be leveraged include Digital Public Goods (DPGs). According to the Digital Public Goods Alliance, DPGs are open-source products that advance the sustainable development goals. They are open in terms of data, AI models, standards, and content. Beyond being open-source and platform-independent, DPGs must adhere to privacy and other applicable laws and best practices, do no harm by design and meet the DPG Standard. Why are DPIs important? For governments, DPIs enable better planning, design and digital delivery of services in areas such as education, healthcare and welfare to citizens. This is because the infrastructure would already exist on which public services can be built and delivered in an improved manner. Leveraging digital for improved service delivery does not happen overnight and is iterative, but that’s a whole other conversation on government’s digital maturity. For citizens, when DPIs enable service delivery, it means that there are improved possibilities for savings in the cost, time, and processes it takes to access government (and other) services. For instance, with identity, , it is currently the norm in Nigeria to be required to provide the same data on registration forms to different government offices every time one needs to access services. This is unfortunate in a country where identity DPIs such as the National identity Number (NIN) or Bank Verification Numbers (BVNs) could have helped with saving the time spent filling forms. Other stakeholders such as players in the digital economy, can leverage DPIs—based on citizen and residents-protecting governance standards—to design innovations and [better] products for their customers. Also, and similar to the benefits citizens derive, DPIs can enable ease of doing business as applications for business registrations and licences and permits become easier and faster to secure. The kinds of DPIs in existence While many DPIs exist, most fit into three broad categories: those that enable digital identity, payments, and data exchange. Identity. These are DPIs that enable the verification of digital identity to which services are or can be connected. Our Indian counterparts that the Nigerian government wants to learn from have developed Aadhaar, the world’s largest biometric identity system with over 1 billion people identified on the platform and to which India’s public services are linked. It is a great example of DPIs deployed at the scale of a country’s population. Nigeria’s NINs and BVNs are good examples of DPIs that can enable the government to deliver services. Payment. These DPIs enable payments across different platforms and through different channels. The Nigeria Inter-Bank Settlement System (NIBSS) and Remita are good examples here of payment DPIs in Nigeria. The United Kingdom’s GOV.UK Pay is an example of a DPI that has been developed by the UK’s Government Digital Services to enable payment for public services by allowing other UK government offices to integrate the DPI on their digital sites. Data exchange. These enable secure information exchange—with the data owner’s consent—to enable service delivery. X-Road, Estonia’s data exchange platform (and a DPG) is a good example here. There is an opportunity for more transparency on Nigeria’s approach in this regard, beyond the introduction of the Nigeria Data Protection Regulation (NDPR) Act. How can Nigeria successfully leverage DPIs? Whether Nigeria’s vision is to build new DPIs, or leverage existing local ones or DPGs, it is important to ensure that the DPIs are: Interoperable. They are designed in a way that allows the government and other service providers to build services on them, integrate their digital solutions with them or leverage them to enable their service delivery. Standards and principles should be introduced to ensure and enforce interoperability. Inclusive. The way one would think it unusual for people to be unable to use a road or access potable power should inform the thinking around the design, delivery and iterations of DPIs in Nigeria. As much as possible, Nigeria’s DPIs should be in a state that typically enables self-service by everyone (and in extraordinary situations, assisted), and are not directly or indirectly prohibitively expensive to access. The introduction of DPIs, if not properly managed, might exacerbate Nigeria’s already existing digital and other inequalities. Accountable to the public. The existence of DPIs necessitates the introduction of governance frameworks that facilitate the transparency of government and other stakeholders’ engagements with DPIs. It is important to not only focus on the technology, but also the standards, if DPIs are to be inclusive and protect the rights of citizens. The frameworks should be developed through a multistakeholder
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Struggling with record inflation, Nigeria’s Central Bank postpones meeting to decide interest rates
Nigeria’s Central Bank has postponed this month’s scheduled Monetary Policy Committee (MPC) meeting that will decide the nation’s interest rates For the first time in eight years, Nigeria’s Central Bank postponed the Monetary Policy Committee (MPC), to decide the nation’s interest rates temporarily. The MPC meeting is usually held every two months to decide interest rates. It was initially scheduled for Monday and Tuesday, September 25 and 26, 2023. A statement signed by the Director, Corporate Communications, Isa AbdulMumin, said a new date for the meeting will be communicated in due course. “We regret any inconvenience this change may cause our stakeholders and the general public,” the statement read on the central bank’s website. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now! Last week, President Bola Tinubu nominated Yemi Cardoso as Nigeria’s next CBN governor. Cardoso is expected to succeed Godwin Emefiele, whose suspension and dramatic removal still raise legal questions. Nonetheless, the Central Bank has struggled with price stability since Emefiele’s reign as CBN Governor. Nigeria’s inflation figures have now crossed an 18-year high with the current figures at 25.80%, driven by food prices. Emefiele’s reign has caused several analysts to question the bank’s independence especially with a last minute stunt of ex-bank chief to vie for the presidency. While Cardoso’s political affiliations maybe called into question, the decision to maintain or raise interest rates in response to mounting inflation has to be made very soon at the MPC meeting. The now postponed meeting is sure to raise eyebrows over how the leadership of the CBN would be managed, especially under Tinubu’s administration. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Exclusive: Inside Francis Dufay’s urgent plans to rescue Jumia, the struggling Amazon of Africa
Francis Dufay has spent most of his career working in e-commerce. But as CEO of Jumia Group, Africa’s most recognised e-commerce brand, he is facing his most challenging task ever. More than a decade after it set up shop, the online retailer Jumia is still hemorrhaging money with no timeline for profitability. In its most recent earnings report, Jumia lost $167 for every $100 it earned. While its revenue from the first six months of 2023 stood at $94.8 million, it lost $63.7 million. Although its losses have reduced compared to previous years, it’s still too high for comfort. Old claims of being the “Amazon of Africa” no longer hold much value as it struggles to stay relevant in its key markets. “Our economics was not sustainable as they may have been,” Dufay told TechCabal, referring to Jumia’s operating model over the last ten years. “The priorities needed to change.” Dufay has risen through the ranks at Jumia over the last decade after joining the company from McKinsey, the global consulting firm. Before being named CEO in November 2022, he oversaw Jumia’s business in nine countries while reporting to former co-CEOs Jeremy Hodara and Sacha Poignonnec. Both executives resigned late last year, walking away with severance packages worth $850,000 each, according to Jumia’s financial report. “Today, I’m managing 11 countries [and] I get to deal with a few more topics now, but it [my promotion] was not groundbreaking [or] a major transformation of my role because I was already overseeing the majority of the business at Jumia,” Dufay said. “So that helped me to make a relatively smooth transition and quickly get into the role. And I was able to make the right decisions extremely fast.” As chief executive, Dufay inherited a struggling business that is no longer growing, putting it at risk of running out of money in a little over a year. Dufay declined to speak about his predecessors’ performance and management decisions. Jumia’s biggest challenge at the moment is cutting costs. With less than $62 million cash left in the bank account, per its Q2 2023 reports, Jumia may struggle to cover its costs. It has also lost nearly a third of shoppers on its platform over the last year as the business takes drastic changes to survive. “In the past, the focus has been fully on growth, but in a very different context where funding across the world was abundant for growth companies, which enabled many companies not to worry too much about some of the aspects of the business,” Dufay shared. Jumia benefitted from this old reality, raising over $700 million as a startup. On two occasions, it extended its runway by selling equity on the capital market as a publicly traded company. These lifelines no longer exist because of rising interest rates in the US and an unfriendly stock market. Jumia has to adjust to this reality on its path to sustainability. “We are working hard to get the right cash utilization and cost structure so we do not need to go and beg the market for new capital,” Dufay explained. Since his appointment, Dufay has implemented painful cuts across the company, including laying off 900 or 20% of employees. He is also reining in some profligacy, including forcing 60% of its top management team to work from the African continent instead of an office in the United Arab Emirates to save costs. The move to Africa will also remind executives of the operational realities in the markets they serve. The cuts have also hit executive compensation, and Dufay is likely to earn much less than his predecessors, according to the company’s annual report. In 2021, former co-CEOs Hodara and Poignonnec each collected annual base salaries of nearly $480,000 and stock option incentives worth $4 million each. However, the new CEO’s base compensation is lower, hovering around $350,000 according to his annualized pay from December 2022. At least two of Jumia’s non-executive board members have also waived all or part of their hefty compensation packages in the last two years to help the company conserve cash. Last year, the company’s board members collectively earned $1.5 million in cash and stock compensation despite the company’s staggering losses. “Of course, I’m interested in my salary,” Dufay told TechCabal about his compensation. “What matters to me is that we get back on track on growth.” Promising early days Launched in 2012, Jumia started operations on the continent from Nigeria as the West African country’s economy was on the verge of a restart. Government reforms from a decade earlier laid the groundwork for economic growth. As commodities prices, such as crude oil, soared during the Arab Spring, international economists expected an economic boom that would usher in a new and larger middle class in Nigeria and across the continent. Nigeria, Jumia’s single biggest market today, was poised to benefit significantly from the new prosperity. Thanks to a fast-growing population, many of them young, and deepening broadband connectivity, the country’s consumer internet market size expanded even before the first 4G internet services rolled out in 2016. McKinsey predicted these upward economic trends would widen the middle-class population to 35 million by 2030. The phrase “Africa Rising” captured this optimism, which defined the era while skeptics, like Standard Bank, who questioned the lofty projections about a middle-class expansion, were ignored. Jumia Q2 2023 report: Active customers decline by 1 million as company slows losses Startup investors wanted to get in on the coming prosperity. Tiger Global made its entry, backing Jobberman and IrokoTV. Other investors wanted someone to guide them as they explored the unfamiliar Nigerian market. Along came the Samwer brothers, founders of Rocket Internet, a German venture studio that copied proven American business models and applied them in other markets. Rocket Internet hired the team of co-founders that built Jumia ‘s retail operations, while the Samwer trio attracted major financiers who drooled at the digital economy possibilities in the region. Jumia took off but so did Konga,
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iPhone 15 series price in Nigeria, Kenya & South Africa
The iPhone 15 has been greeted with mixed reactions since its unveiling at the recent Apple event. However, it doesn’t mean there aren’t people who’d still love to get the variations of the new smartphone from Apple. As such, if you’re in Nigeria, South Africa, or Kenya and are eager to get your hands on the new iPhone 15, you’re in the right place. In this article, we will explore the prime retail stores and locations, as listed by Apple, where you can purchase the highly anticipated iPhone 15 models in these three African countries. Not only will we guide you to the best retailers, but we’ll also provide insights into the likely price ranges, ensuring you’re well-prepared to make your iPhone 15 purchase. Before we delve fully in, we wrote a concise review of the latest iPhone 15, you should read it. Location and likely prices to get the iPhone 15 in Nigeria If you’re in Nigeria and looking to purchase the iPhone 15, it’ll be no hassle. Once it starts selling in Africa, there are several reputable retailers across the country where you can find this popular Apple device. 1. 9MOBILE outlets – e.g – Unit G085 – G090 & G103 – G 108, Tejuosho Shopping Complex Yaba, Lagos. 2.. GLO outlets – e.g Palms Mall – Address: Suite 44, Palms Shopping Mall, VI, Lagos. 3. KONGA – online or offline walk-in stores like 78 Bode Thomas Road, Lagos. 4. SLOT – e.g 5 Akerele St, Ifako, Gbagada, next to GTBank, Lagos. 5. FINET – e.g 14 Oshitelu Street, Ikeja, Lagos. 6. WESTGATE – e.g 17, Adepele Street, Computer Village, Ikeja, Lagos. 7. SPAR – e.g 19, Awosika Bus Stop, Opebi Road, Lagos. Prices to expect the iPhone 15 variations in Nigeria Storage and some other features of the new iPhone 15 models will be the major determination of the price variations apart from shipping costs, tax, exchange rate, and other import duty costs that may affect the phones’ prices as may be advertised by Apple. iPhone 15 prices: starting from about ₦900,000 iPhone 15 Plus prices: starting from ₦1,100,000 iPhone 15 Pro prices: starting from ₦1,300,000 iPhone 15 Pro Max prices: starting from ₦1,500,000 Location and likely prices to get the iPhone 15 in South Africa For our readers in South Africa, you may find the iPhone 15 in the following stores: 1. COMPUTER MANIA – Garstfontein Rd, & De Villebois Mareuil Dr, Pretoria. 2. INCREDIBLE CONNECTION – Shop 21B Hartbeespoort Village Mall, Magalies Blvd, Schoemansville, Pretoria. 3. VODASHOP VODACARE PORT ELIZABETH – Shop G5 The Bridge Shopping Centre, Port Elizabeth. 4. VODACOM 4U PAVILLION CNR OLIVE e.g – Shop 44 Diamond, Kimberley. Prices to expect the new iPhone variations in South Africa The potential prices of the iPhone 15 in South Africa start from as follows. iPhone 15 prices: starting from about R22173.52 iPhone 15 Plus prices: starting from R27100.96 iPhone 15 Pro prices: starting from R32028.41 iPhone 15 Pro Max prices: starting from R36955.86 Location and likely prices to get the new iPhone in Kenya Kenyan consumers can find the iPhone 15 at these stores/locations: 1. ANISUMA TRADERS – PARKSIDE TOWERS – Parkside Towers, Mombasa. 3. SALUTE I WORLD -e.g Capital C – Mombasa Road, Nairobi. 4. GLOBOEDGE – WATERFRONT MALL – Waterfront Mall, Karen Road, Nairobi. 5. ZETORT – HILTON – Hilton Nairobi, Nairobi. Prices to expect the iPhone 15 variations in Nigeria Many factors can affect the price of the iPhone 15 in Kenya. However, below are likely starting prices for each model: iPhone 15 prices: starting from about Ksh171935.36 iPhone 15 Plus prices: starting from Ksh210143.22 iPhone 15 Pro prices: starting from Ksh248351.08 iPhone 15 Pro Max prices: starting from Ksh286558.94
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SRD SASSA appeal status for new 2023 payments
The South African Social Security Agency (SASSA) provides crucial financial assistance to eligible citizens through the Social Relief of Distress (SRD) grant. However, sometimes applications are denied, leading applicants to consider appealing the decision. If you’ve submitted an SRD SASSA appeal recently (January-September 2023), you are advised to check your appeal status now. Here’s a comprehensive guide on how to check it. Meanwhile, if you use Postbank, read this as the bank recently confirmed all SRD SASSA funds disbursements. 1. Go to the SASSA appeal status check portal Open your web browser and go to the official SASSA website (https://srd.sassa.gov.za/appeals/appeal). This is the primary platform for accessing information related to SRD appeals. 2. Enter your details Once you’ve found the appeal status section, you’ll be prompted to enter your South African ID number, and cellphone number, and possibly, your appeal reference number. Ensure you enter these details accurately. 3. Check your SASSA SRD appeal status After entering your information, click on “Send Pin” The system will process your request and likely send you a verification code. Once it does, enter it. Afterwards, the current status of your SRD SASSA appeal should be on display. 4. Review the outcome The system will provide you with the appeal status, which could be one of the following: Approved: Your appeal has been successful, and you will receive the SRD grant. Denied: Unfortunately, your appeal was not successful, and you won’t receive the SRD grant. Pending: Your appeal is still being reviewed, and a decision has not been reached yet. 5. Contact SASSA for further assistance If your appeal status is “Pending” or you encounter any issues during the process, it’s advisable to contact SASSA directly. They can provide additional information and guidance on your specific case. 6. Keep a record Make sure to document your appeal status for future reference. This record can be helpful if you need to follow up with SASSA or if you have questions about your SRD grant. Final thoughts on the SRD SASSA appeal status check If your SRD SASSA South Africa appeal status still reads “Denied”, you may need to re-apply. But it’s advisable to reach out to SASSA to look via any of their verified channels for support. They will tell you what you need to do differently to make your SRD SASSA application successful.
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Fixit45 raises $1.9 million to expand into East Africa
Fixit45 expansion drive into East Africa has caused the startup to raise $1.9 million to provide quality automotive spare parts, vehicle repairs and maintenance services across the continent Fixit45, a Nigerian startup that provides automotive spare parts, vehicle repairs and maintenance services has secured $1.9 million pre-seed funding. The funding is a mix of equity and working capital. FixIt45 will use the investment to scale its business in Nigeria and expand into East Africa, particularly, Kenya and Uganda. The round was backed by Launch Africa Ventures, a VC investment firm, and featured participation from distinguished investors such as Soumobroto Ganguly and Dave Delucia, along with a diverse group of angel investors. Speaking on the fund round, Co-founder & COO of Fixit45, Pankaj Bohhra, said the funding represents a pivotal moment for Fixit45. “With this capital infusion, we are well-positioned to advance towards our expansion objectives,” Bohhra said. Have you got your tickets to TechCabal’s Moonshot Conference?Click here to do so now! Per data from the National Bureau of Statistics (NBS), Nigeria, with an estimated population of 200 million, boasts over 12 million registered vehicles, of which almost 90% are imported, representing a motorization rate of just 0.06 vehicles per person. Faced with the high costs of purchasing new or imported vehicles abroad, vehicle owners are poised to upgrade and repair their existing vehicles to enhance their mobility assets and trade-in value. FixIt45 plays in this market by providing high-quality repair and maintenance services. FixIt45 and its competitor Mecho Autotech were founded in the same year in 2021. However, FixIt45 says it has an impressive network of 300+ operational workshops spread across nine Nigerian cities, including Lagos, Abuja, Port Harcourt, and Jos, serving nearly 4,000 clients. It also leverages on a collaboration with 1,200 spare part dealers to tap into the African automotive industry predicted to reach $42.06 billion in 2027. The automotive startup is also intensifying efforts in spare parts distribution via its online-to-offline platform, xparts.africa. Co-Managing Partners at Launch Africa Ventures, Janade du Plessis and Zachariah George, said the Fixit45 team and seamless experience were the key factors in the decisions to back them. “We are impressed by their unwavering commitment to excellence, compliance, and accountability. We have every confidence that the company is well-prepared to achieve its ambitious goals,” they said. Have you got your tickets to TechCabal’s Moonshot Conference?Click here to do so now!
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👨🏿🚀 TechCabal Daily-PayDay in talks to sell after $3million raise
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday! It has been a really good year for Ebanx. Just one year after its debut in South Africa, Nigeria, and Kenya, the payment company has expanded to more African countries; Ivory Coast, Morocco, Senegal, Tanzania, Egypt, Ghana, Uganda, and Zambia. It also recently made its debut in the Asian market by launching in India. In today’s edition PayDay in talks to sell after $3million raise Chipper cash wants to verify users with AI Openserve confirms Sat-3 cable repair Google’s AI Bard gets new features The World Wide Web3 Event: Moonshot Conference Opportuinities Fintech PayDay in talks to sell after $3million raise Image source: TechCabal Nigerian fintech PayDay, after securing a $3 million seed funding round six months ago, is now in talks to be sold. What’s the gist? Per a member of PayDay’s management, the company was open to acquisition before its seed funding round which was led by Moniepoint. In March, a report speculated about Moniepoint acquiring PayDay, with a journalist privately predicting a three-month deal. According to an insider close to the situation, Moniepoint had expressed their intention to acquire PayDay contingent upon specific conditions or criteria that needed to be satisfied before proceeding with the acquisition. However, the deal remained in limbo, with sources suggesting that Moniepoint’s board was not enthusiastic about the acquisition. It’s possible that PayDay did not meet the required conditions for the deal to progress as initially anticipated. Despite Moniepoint pulling out of the deal, talks to sell the company are still ongoing. Nonetheless, negative publicity may also be hindering the company’s sale. A wave of bad press: In August, PayDay suspended customer accounts to recover funds lost to fraud. Per a source, the company did not disclose the losses until a prominent blog accused them of mishandling customer funds. Furthermore, some Nigerian employees claim their salaries were slashed in July—three months after the $3 million raise, while the CEO, Favour Ori, maintained a $15,000 monthly salary. These salary reductions coincided with the departure of key employees, including co-founder and COO Ogechi Obike. Zoom out: As the company continues discussions about a potential sale, sources disclose that Ori has reduced his involvement in the company and has been working full-time at GitHub, implying that PayDay was a side hustle. Get a working card from Moniepoint With the Moniepoint personal banking app, you get reliable payments every time and a card that always works. Enjoy seamless payments powered by the infrastructure that 1.5 million businesses trust. Download the app. AI Chipper Cash wants to verify users with AI Image source: Tenor In its latest move, the African cross-border payment company has launched Chipper ID, an AI-powered suite of verification services. The feature is aimed at solving Africa’s industry-wide customer onboarding and compliance issues. A 5-in-1 suite: The suite consists of five core product areas: facial verification, document verification, Liveness, an AI system that detects authentic users, a screening bot for comprehensive compliance and a back office portal hub. ICYMI: Chipper Cash is among the few African companies to reach unicorn status.Since its launch in 2018, the company has raised a combined $300 million while recording $100 million in revenue with five million registered users. While Chipper Cash might have experienced great highs, the startup has been in the news lately for its valuation cuts and layoffs. Chipper Cash has had multiple rounds of layoffs since December last year, with its latest round of layoffs in August affecting the COO. In the same month, the company cut its valuation by 70%. Zoom out: Chipper Cash’s new feature offers a new inroad into shielding African businesses from fraud arising from inauthentic users. The feature would also help reduce the KYC gap on the continent Internet Openserve confirms Sat-3 cable repair Image source: Zikoko Memes Openserve, South Africa’s Telkom subsidiary has confirmed that the broken SAT-3 subsea cable has been fully repaired. ICYMI Last month the subsea cable broke off the coast off the Democratic Republic of Congo due to two separate rock falls in the Congo Canyon submarine. The SAT-3 cable breakage was one of three major west coast undersea internet cables that were severed in the past month. The West Africa Cable System (WACS) and SAT-3 undersea cables snapped simultaneously. As a result of the cable breakage, South Africans experienced reduced internet speeds. With all three cables being repaired, South Africans will now enjoy normal internet connectivity. Zoom out: The recent cable breakages show the need to rethink internet connectivity on the continent away from the traditional subsea cable. While subsea cables have been the backbone of internet connectivity for decades, recent disruptions highlight the importance of exploring alternatives. AI Google releases new features for its AI chatbot Bard Image source: Imgflip On Tuesday, Google revealed new updates for its Bard chatbot. What are the updates? Google has updated its AI chatbot, Bard, with the ability to access and use Google’s full suite of tools, communicate in multiple languages, and perform fact-checking. These updates are the biggest to Bard since it was widely released to the public six months ago. Bard can now also draw on information from Google’s other services, such as YouTube, Maps, Flights, and Hotels. Furthermore, Google has also taken steps to address some of the concerns that have been raised about AI chatbots, such as their tendency to generate inaccurate information known as “hallucinations”. Bard now has a “double-check” button that allows users to evaluate the accuracy of its responses, and the company has said that it is constantly working to reduce hallucinations. Lastly, Bard now supports conversation sharing, enabling one user to share a chat with another, who can then expand on the conversation. Zoom out: Overall, the new updates to Bard make it a more powerful and versatile AI chatbot. It remains to be seen how widely adopted Bard will become, but it is clear that Google is investing heavily in this technology.
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Postbank confirms full SASSA SRD grant payments amid fraud attempts
It’s some great news for SRD SASSA beneficiaries using Postbank. In a recent statement posted on the official SASSA SRD handle on X (formerly known as Twitter), Postbank has officially confirmed that all outstanding SASSA grant payments to affected recipients, stemming from the system incident on the 5th and 6th of September, have been successfully disbursed. The complex task of rectifying these payments has been accomplished, ensuring that SASSA SRD Gold Card beneficiaries who were awaiting their grant can now access them seamlessly, be it through ATMs or participating retailers. For those social grant beneficiaries with further inquiries regarding their payments, Postbank extends its support channels: Phone Call: 0800 53 54 55 Email: Reach out via PBbalancingSaswitch@Postbank.co.za WhatsApp: Message at 073 806 1631 Fraud detection by the Postbank system by some SRD SASSA grant beneficiaries The bank also in the statement noted that some individuals have attempted to manipulate the system by seeking double payments, despite having already received their due funds. Postbank wants to make it abundantly clear that such fraudulent actions will not succeed due to the robustness and high-end encryption of their systems. However, they highlight that such actions not only hinder genuine beneficiaries but also contribute to the misconception that a significant number of SASSA beneficiaries remain unpaid. Postbank condemns this behaviour and vows to report it to law enforcement agencies, emphasising its commitment to ensuring that deserving beneficiaries receive the assistance they require. Final thoughts Postbank’s diligent efforts to rectify the SASSA grant payment issue demonstrate their unwavering commitment to serving the needs of South Africa’s most vulnerable citizens. With all outstanding payments now disbursed and safeguards in place against fraudulent activities, beneficiaries can rest assured that the system is working in their favour. Meanwhile beneficiaries of the SASSA SRD grant can use any bank to receive their grant. If you want to learn how to change your banking details, read this article here.
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Exclusive: Nigerian fintech PayDay is looking to sell the company six months after $3m raise
Months after raising $3 million, the Nigerian fintech PayDay is in talks and hopes to conclude a sale of the company soon. Six months after raising $3 million in a seed round led by Moniepoint, the Nigerian fintech startup Payday is actively speaking to buyers. Favour Ori, the startup’s CEO, confirmed that PayDay is entertaining conversations with potential acquirers. “Active conversations are being had with people who reached out and expressed interest in buying,” Favour told TechCabal. In March, one publication reported that Moniepoint was in discussions to buy Payday; a journalist at that publication said privately that the deal would be closed in three months. “Favour himself leaked the news,” One source close to the situation said. “Moniepoint had issued a letter of intent to acquire Payday, contingent upon specific performance benchmarks being met. It was a matter anticipated in the near future.” But by May, there was no update about the deal. A highly placed member of PayDay’s management said the company was open to being acquired before its seed round. Despite this openness to being bought, the Moniepoint deal did not go through, with one source claiming that Moniepoint’s board was not keen on the deal. One source at a VC with equity in Moniepoint claimed that they first heard about the potential acquisition of PayDay in the media. Despite Moniepoint pulling out of the deal, TechCabal confirmed that talks to sell the company are ongoing. A wave of bad press may have complicated attempts to sell the company. In August, PayDay acknowledged that it suspended access to customer accounts after it noticed some customers had lost funds to fraudulent activities. While an employee familiar with the matter refused to disclose how much was lost, they admitted that PayDay temporarily disabled access to several accounts to recover funds stolen by people who exploited a loophole in Payday’s infrastructure that enabled currency arbitrage. “The company didn’t publicly acknowledge that it had restricted accounts until a prominent blog accused the company of misappropriating customer funds,” a source told TechCabal. As the company pushed back on bad press, it also had to deal with internal issues. A contentious salary adjustment at PayDay Current and former employees said PayDay slashed salaries of some Nigerian staff in July—three months after the $3 million raise. “They told us that it was because the company wanted to be domiciled in Nigeria and was obligated to pay its resident employees in Naira,” a current employee said. While employees expected the Naira equivalent of their salaries to align with their dollar salaries, the actual amounts fell short, amounting to 30-50% reductions. The company said the cut was necessary to adjust the wages of employees in Nigeria to the regular pay for such roles in the country. A highly placed source claimed that less than 10 of the company’s 60 staff were affected and that PayDay planned to assign stock options to the employees as further compensation. PayDay employees told Techcabal that the stock options that were promised had not materialised. The displeasure of employees was complicated by the fact that Favour, who shuttled between Rwanda and the U.S maintained his monthly salary of $15,000. “I went months without a salary before we raised it,” Favour said. “After we did, I earned $15,000, but that has been slashed to reduce the burn rate.” Those salary reductions coincided with the exit of several employees, including co-founder and Chief Operating Officer (COO) Ogechi Obike. Obike’s exit note cited a misalignment of goals as the reason for her departure. Three current and former employees described meetings in which Obike and Favour argued. “During meetings, he provoked arguments, particularly when she proposed alternative approaches different from his own,” said a company insider. The same source claimed Obike was omitted from conference calls involving service providers, investors, and other stakeholders. A source at PayDay’s management denied these claims and said that Favour often had praise for Obike, and she left by mutual agreement. Favour Ori’s shiny object syndrome Sources say that many of Favour’s decisions often came out of the blues. “There were instances when we would wake up to discover upcoming features through Twitter, and even the product team had no prior knowledge of these developments,” one person said. “At times, he would suddenly take control of the company’s social media account to respond to customer complaints.” An employee insisted that Favour’s behaviour was typical of founders in the early stages and not necessarily odd or worrisome. Several people said that Favour had a pattern of hiring top talent from renowned startups, primarily through social media. Once he had recruited them, he rarely allowed them to implement their own ideas instead of compelling them to conform to his directives, effectively stifling their ability to apply their expertise. A member of PayDay’s management who asked not to be named pushed back on some of these claims; ”The team is dealing with a lot, and everyone is stressed, the source said. “I don’t know that anyone left because they were dissatisfied.” The impulsiveness of the company’s founder was sometimes costly. Some customers lost money while trying to create virtual cards, while others could not access their accounts. “All of this happened because Favour abruptly switched from our previous Mastercard provider to a new one, with minimal to no prior vetting. As soon as the switch happened, we were inundated with a wave of customer complaints,” said an employee to TechCabal. The company claims that it has refunded all the affected customers. Lately, Favour has reduced his involvement in the company. “He is no longer as active as he once was on the company’s Slack channel, except for a few occasions when he drops messages in the engineering channel,” a source told TechCabal. A source also disclosed that while he is occupied with attempts to sell the company, Favour has worked full-time at GitHub. “Early in the year, during a team hangout, Favour showed us his Github work ID when introducing himself, implying that Payday
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