👨🏿🚀TechCabal Daily-Leatherback won’t fold
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Good morning It is Africa Climate Week, so Kenyan President Ruto has been using an all-electric fleet for his motorcade. Even his security team traded in their internal combustion engine motorcycles for electric ones from local EV upstarts like Roam, Ampersand, Spiro, and KiriEVs. But will they keep driving green after the summit lights dim? In today’s edition Leatherback denies rumours of financial losses Nigeria to clear $10 billion FX backlog in two weeks Bitcoin nonprofit acquires Qala Amazon and Vodafone team up to challenge Starlink The World Wide Web3 Event: The Moonshot Conference Opportunities Fintech Leatherback denies rumours of financial losses Image source: Zikoko Memes Leatherback, a UK-based cross-border payments startup, has denied rumours of financial losses to SDQ Facilitators. The company says that its bank accounts are fully functional and that all client funds are safe. What are the rumours? The rumours, which have been circulating online, allege that Leatherback lost money to SDQ Facilitators, a Nigerian currency trading company and that transactions with SDQ Facilitators had exposed the fintech to an ongoing investigation that has left its bank accounts frozen worldwide. However, Leatherback CEO Toheeb Ibrahim has denied the rumours and said “It’s terrible and laughable.” Ibrahim claims that Leatherback has no relationship with SDQ Facilitators and adds that Leatherback’s accounts are fully functional. Zoom out: The rumours about Leatherback are circulating after we exclusively reported that Float, a fintech company originally founded to help startups with cashflow management, dabbled into currency trading instead. In a series of transactions that eventually went wrong, the startup lost money and could not pay at least $6 million in client deposits. 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. Banking Nigeria to clear $10 billion FX backlog in two weeks Image source: Zikoko Memes Nigeria is rolling up its sleeves to tackle a multi-billion dollar backlog. Nigeria’s acting Central Bank Governor, Ade Shonubi,has announced that the central bank will clear the backlog of foreign exchange (FX) demand in two weeks. What is FX backlog? FX backlog is when investors and importers still need foreign currency that they haven’t gotten yet. Currently, a backlog of about $10 billion has been weighing on the economy. Shonubi said that the CBN will be working with local banks to fix the problem as they currently contribute three times more FX than the central bank. Zoom out: The backlog of foreign exchange demands has reduced investor confidence in Nigeria, with rightful fears that investors might not be able to recoup any profits they make in Nigeria. Acquisition Bitcoin nonprofit acquires Qala Image source: TechCabal ₿trust, the non-profit company formed by Block CEO Jack Dorsey and American rapper and entertainment mogul Shawn Carter, popularly known as Jay-Z, has acquired Qala, an organisation that trains African Bitcoin and Lightning engineers. More about Qala: The company sources, trains, and matches African software developers with leading Bitcoin companies from across the world. With its latest acquisition by ₿trust, Qala has the needed resources to build the next generation of African Bitcoin talent pipeline. Unlock new opportunities for your business Unlock new opportunities for your business with Vesicash! Seamlessly expand into emerging markets using our secure, all-in-one and cost-effective payment infrastructure. Contact Vesicash via our website www.vesicash.com or reach out to our dedicated team at info@vesicash.com Internet Amazon and Vodafone team up to challenge Starlink Image source: TechCabal Starlink has gotten a new competitor. Yesterday, Amazon and Vodafone teamed up to bring 4G/5G to more customers in Europe and Africa using Amazon’s Project Kuiper’s satellite network. What is Project Kuiper? It is an initiative to bring fast, affordable broadband to unserved and underserved communities around the world. Project Kuiper claims to connect cellular antennas in remote areas to Vodafone and Vodacom’s core telecom networks, allowing them to offer 4G/5G services in more locations without the need for expensive fibre or fixed wireless links. Amazon expects to begin beta testing Project Kuiper services with select customers by the end of 2024, and Vodafone and Vodacom plan to participate in this testing as part of their collaboration. A competitive landscape: Starlink has faced regulatory challenges in some African countries, making Project Kuiper’s collaboration timely and potentially advantageous. In August, the Senegalese government arrested people selling Starlink in the country after shutting down the internet for the second time in two months, citing violations of the country’s telecommunications laws. Last week, the Zimbabwean government warned that it is illegal to use or resell Starlink equipment in the country. Unless they secure requisite licenses, they are breaking the law by using and providing the service. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $25,732 + 0.01% – 11.38% Ether $1,631 + 0.52% – 11.07% BNB $214 – 0.20% – 11.69% Cardano $0.25 + 0.81% – 12.27% * Data as of 10:25 PM WAT, September 5, 2023. Elevate your business with One Liquidity’s seamless integration. Choose from 10+ services to craft a custom solution. Join Obiex, Wewire, and others in providing trading, liquidity & compliance services. Start now with zero upfront fees. One integration. One solution. One Liquidity. Events The Moonshot Conference Early bird tickets are still selling out fast for Moonshot by TechCabal! If you’re an international fan eager to be part of this incredible event, the time has come for you to secure your seat and get an exclusive discount. Be part of the gathering of the most audacious players in Africa’s tech ecosystem and get your early birds ticket now. Get your ticket today. Opportuinities Want to build a successful tech business? Sign up for this 5-week training programme and gain access to resources worth over $15,000. Apply by September 10. The SaaS Accelerator Programme: Africa 2023 has opened applications for
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Light on details, CBN governor claims FX backlog will be cleared in two weeks
Nigeria’s apex bank. Image Source: CBN Mr. Ade Shonubi, the acting governor of the Central Bank of Nigeria (CBN), told reporters at an event in Lagos that the apex bank will clear the backlog of foreign exchange (FX) demands in two weeks. At a press conference in Lagos on Monday, Mr. Ade Shonubi, the acting governor of the CBN, said that as a result of a partnership between local banks and the CBN, the current backlog of foreign exchange (FX) demand would be cleared in two weeks—estimated at $10 billion. “The local banks have been working with the Central Bank on various structures to clear [the backlog],” Shonubi said. The FX backlog refers to the foreign exchange demand by investors and importers that has not been met. Shonubi claimed that “a large amount” of foreign exchange demand has already been met by Nigerian banks, adding that the banks contribute three times more FX than the central bank. This appears to be consistent with the CBN’s recent transition from a regular player in the foreign exchange market to receding into a regulatory background. He added that the bank’s involvement in the FX market was a result of the restructuring with the banks and that the backlog would be cleared in “the next one or two weeks.” In recent weeks, the CBN has tried different approaches to stabilising the FX rate and clearing a backlog of demand requests for the greenback. The CBN had previously tried to use a $3 billion loan secured by the Nigerian National Petroleum Corporation to inject liquidity into the foreign exchange market but the plan fell through as investors developed cold feet, leaving the African Export-Import (Afrexim) Bank as the sole provider. Clearing the backlog of FX demand would boost investor confidence in Nigeria and bring stability to the FX rate, which is very important to investors. After floating the Naira, the official market rate quickly shot up from $1/₦462 to $1/₦700 and as high as ₦920 on the parallel market. If an investor took a loan at the former rate, they would have to pay back a higher amount in Naira to repay the same amount in dollars. This rapid devaluation has led to severe economic difficulties and is hitting startups that raised money in dollars hard, with some founders saying that most businesses might shut down as a result. As Africa’s struggling currencies hinder growth, should startups fundraise in local currencies? Shonubi also said that the backlog did not affect the CBN’s ability to make foreign currency available to banks. Regarding media reports that the CBN owed JP Morgan $7 billion, Shonubi clarified that the CBN did not have any outstanding balance with JP Morgan, calling claims of a $7 billion debt “misinformation”. The backlog of foreign exchange demands has reduced investor confidence in Nigeria, with rightful fears that investors might not be able to recoup any profits they make in Nigeria. With as much as $812 million in revenue stuck in Nigeria, foreign airlines have arguably been the most affected by the backlog of demands. But in recent weeks, many airlines have begun to withdraw their funds from Nigeria, a sign of the progress the CBN has made. According to the CBN, other foreign investors have also been able to repatriate over $5 billion worth of dividends from the country between October 2022 and March 2023. CBN floats the Naira as banks offer $1 for N700
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3 ways to check 2023 NSFAS status using ID number
The NSFAS is instrumental in offering financial support to South African students who are pursuing further education. If you’ve applied for NSFAS 2023 funding and want to check the status of your application, you can do so easily using your ID number. In this article, we’ll guide you through the steps to check your NSFAS status. 1. Ensure you have the needed data Before you begin, make sure you have your South African ID number and your NSFAS application reference number ready. You will need both of these to check your status. Step 2: Visit the NSFAS Website Open your web browser and go to the NSFAS website (https://www.nsfas.org.za). This is the official platform for all NSFAS-related services. Step 3: Navigate to the MyNSFAS portal and log in On the NSFAS homepage, locate and click on the “MyNSFAS” tab or link. This will take you to the MyNSFAS portal, where you can access various services related to your NSFAS application. Then since you already likely have an account on the MyNSFAS portal, log in using your credentials. Step 5: Access your NSFAS profile using your ID Once you’re logged in, you’ll have access to your NSFAS profile. Here, you can view the status of your application, among other information. Step 6: Check your NSFAS status Look for the option that allows you to check your application status. This may be labelled as “Application Status” or something similar. Click on it. Step 7: Enter your ID number You’ll be prompted to enter your South African ID number. Ensure that you input it correctly. Step 8: Submit your ID number for NSFAS status check After entering your ID number, click the “Submit” or “Check Status” button. The system will process your request and display your NSFAS application status on the screen. Step 9: Review your NSFAS status after you check with ID number Your NSFAS status will be presented on the screen. It will typically indicate whether your application is approved, pending, or rejected. If you encounter any issues or need further information, the portal will provide contact details for NSFAS support. Step 10: Save or print If you want to keep a record of your NSFAS status, consider saving or printing the page for future reference. Other ways to check your NSFAS status using your ID number While the above option most likely works for most applicants, there may be website downtime sometimes. In such instances you can use the following ways: You can check your NSFAS status on WhatsApp using your ID number. Just message the number +2785198006, and follow the prompts. You can also check using USSD. Simply dial *120*67327# Final thoughts on checking NSFAS status using your ID number Checking your NSFAS status using your ID number is a straightforward process that ensures you stay updated on the progress of your financial aid application. Remember to check your status regularly and take any necessary actions to secure your funding for your education.
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What it takes to build and scale a business in Africa
This article was contributed to TechCabal by Sapna Shah, partner at Novastar Ventures. Earlier this year, we hosted our annual investor advisory committee at our Nairobi office. We took the opportunity to visit some of our portfolio and pipeline companies and the customers they serve. For a few years now, with COVID-related travel restrictions, experiencing this first hand hasn’t been easy for our investors and the only way they could appreciate the realities on the ground was via reports and on screen. The visit reminded me of a few themes that we have seen play out with our portfolio companies and some of the lessons we have learnt along the way about what it takes to successfully build and scale businesses in Africa. First, the evolution of our market is such that if you’re an entrepreneurial team that wants to move and scale fast, you’re going to need to build many parts of the value chain yourself. Each of our companies has ended up doing things they could never have imagined in adjacent parts of their business model because plug-and-play tech solutions that address a single problem rarely work in contexts where so many value chains are broken. To successfully scale, companies often need to build full stack, end-to-end solutions. International investors who aren’t familiar with the continent might look at this and say: “You need to focus.” But until our markets are more mature, doing one narrow thing isn’t going to work at scale. The good news is, if the entrepreneurs can figure this out, they’ve inevitably built a strong moat around their company, with high barriers to entry in a market where competition still isn’t too high. Take NewGlobe, a company transforming learning outcomes for children. When it was opening a school a week in Kenya, no construction company could keep up and it had little choice but to build its own schools. Or BasiGo, Africa’s leading electric bus platform, that has to build electric bus charging and service infrastructure and simultaneously provide a pay-as-you-drive financing option, all in order to revolutionise the public transport sector. Or TradeDepot, which started out thinking it could just build software to connect FMCGs and informal retailers but soon learnt that it had to handle logistics as well—everything from warehousing to deliveries—so the customer could be effectively serviced. Building end-to-end solutions takes more time, more capital and is enormously complex operationally. It means that when entrepreneurs come to pitch to us, we know if they say they’ll need $5 million for the next stage of building their business, they will likely end up needing much more. And it will take them a longer time to get there. Managing the larger teams this operational complexity demands is tough. At a middle management and leadership level it requires a lot more multi-skilled generalists. At a junior level, it’s the sheer power of numbers. And while there’s no shortage of people to hire in, let’s say, sales, the success of the business comes from how you then manage the team and inculcate the culture. That leads me to my second theme: culture. With every passing year, it’s a topic I become more passionate about. Good systems make a big difference when managing a fast-growing organisation, whether it’s simple checklists, automation or training. But we know the softer side of the culture is equally, if not more, important. We’re increasingly asking our entrepreneurs: how much time are you spending on building culture? What are you doing around hiring, retention, communication? A great example of this working is pan-African healthtech company, mPharma, where Greg Rockson, CEO, has instilled an open feedback culture, creating loyalty among his teams, despite having grown very rapidly into nine countries in a few short years. When culture goes wrong it’s horrible to watch. A few years ago, one of our portfolio companies scaled its sales team rapidly, but without either the systems to manage the workforce or the culture to create coherence, everything just fell apart. The sales team in our markets is crucial. Sales here doesn’t happen via an app; most transactions remain face-to-face sales—that’s how most customers still prefer to buy. That means companies need sales teams representing them in communities, and ultimately driving sales. That’s quite different to many Western markets, where customers don’t like this sort of high-touch approach. In markets where people have less disposable income, a high level of trust in the product or service they are purchasing is required. If it’s a Penda clinic, and I’m going to spend $10 that I don’t have, I need to trust I’ll get the service I need. If I am investing in a bag of fertiliser from iProcure, I need to know the product will work. This trust is built into transactions with sales representatives in the community. The brand and culture lives in these people, and it is what attracts new recruits to the company too. Finally, co-founder relationships are key. Similar to our VC peers in other parts of the world, we prefer to invest in co-founding teams because of the thought partnership and support co-founders can provide each other. But we’re more pragmatic now: we know that co-founder relationships might not last forever. If and when there is a breakdown, it’s not only about being there for the founders, but also learning how to spot the warning signs early. You might start to see co-founders going off and focusing on a particular aspect of the business, or doing different things on their own, or connecting less with one another than they used to. These signs can be challenging to discern, but over our years of investment, we are learning to spot the red flags early. We founded Novastar in 2014 to power an entrepreneurial revolution that transforms African markets and sectors, creating lasting value for the many, not just the few; for people and the planet—for good. Fast forward nearly a decade and VC funding on the continent has grown an astonishing 26x, despite significant
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Habari Pay’s profits demonstrate GTCO’s bet on retail banking
According to GTCO’s half-year financial statements, Habari Pay reported a profit of ₦1.3 billion after tax. A breakdown of GTCO’s operating segments shows retail banking is its second-biggest revenue-generating segment. Habari Pay, the fintech arm of Guaranty Trust Holding Company (GTCO), posted profits of ₦1.3 billion in the first half of 2023. That’s a 312% jump compared to the previous year, according to GTCO’s half-year financial statements. Habari Pay’s growth shows promising adoption of the bank’s digital payments business as it looks to bolster its hold on the fintech sector. The fintech arm closed June 2023 with a cash balance of ₦3.6 billion. GTCO launched Habari in 2018 as a super-app that provides everything from streaming content to an e-commerce marketplace. The bank, with its ecosystem of small business customers, wanted to create a marketplace hub to support vendors across different industries. Though it was created by one of Nigeria’s biggest banks, it didn’t focus on providing banking services, and it struggled to gain traction among digital users. But in 2020, the lender announced its broader push into digital payments with a corporate restructuring that would make Habari a separate company wholly owned by the bank. In June 2021, Guaranty Trust Bank transitioned into a holding company from its standalone commercial banking structure. It made Habari Pay a standalone business offering payments, a marketplace, and small business services. HabariPay’s flagship product, Squad, combines a payment gateway and e-commerce platform with a Point-of-Sale business. Habari Pay recorded a profit-after-tax of ₦836 million last year, according to GTCO’s 2022 financial report. The two-year-old Habari Pay competes with established payment providers like eTranzact and Moniepoint. eTranzact profits rose to ₦1.01 billion in the first half of 2023—representing a 149% increase compared to the previous year. TechCabal Insights projects that the transaction value of the Nigerian digital payments market will reach N580 billion by the end of the year. Retail banking is GTCO’s second-largest revenue-generating segment GTBank, the holding company’s commercial bank, reports performance across six segments—corporate banking, commercial banking, business banking, retail banking, SME banking, and public sector banking. Per the financial statements, the corporate banking segment reported ₦118.5 billion in revenue, followed by retail banking with ₦72.8 billion, representing 67.6% of the revenue and 20.5%, respectively. Similarly, the corporate banking segment declared a profit-after-tax of ₦47.9 billion, while the retail banking segment recorded ₦19.1 billion. One thing is clear: GTCO will continue to bet on its market relevance to compete with other large banks and fintechs such as Palmpay, Kuda, and Fairmoney. With the entrance of Moniepoint, formerly TeamApt, the retail banking market is expected to become more competitive. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Jay-Z and Jack Dorsey-funded Bitcoin nonprofit acquires Qala
The Jay-Z and Jack Dorsey-funded Bitcoin non-profit acquires Qala, in an undisclosed deal to support next generation of Open-Source Bitcoin Developers ₿trust, the non-profit company formed by Block CEO Jack Dorsey and American rapper and entertainment mogul Shawn Carter, popularly known as Jay-Z, has acquired Qala, an organisation that trains African Bitcoin and Lightning engineers. Following this acquisition, Qala has rebranded into ₿trust Builders Programme. ₿trust, a 500BTC ($21.5million) endowment fund was formed in February 2021 to “fund #Bitcoin development, initially focused on teams in Africa & India.” Qala, founded in 2021, sources, trains, and matches African software developers with leading Bitcoin companies from across the world. With its latest acquisition by ₿trust, Qala has the needed resources to build the next generation of African Bitcoin talent pipeline. Speaking on the acquisition, Bernard Parah, Co-Founder and Director of Qala, said their goal was to build African engineers with deep understanding of Bitcoin’s capabilitites, and that the aquisition further strengthens the goal. It costs up to $200 million a year to keep Bitcoin’s code maintained and functioning. Several developers around the world write and maintain code for the Bitcoin blockchain, however, African developers make up a small fraction of these developers. Since its launch, Qala has added more than 100 community members across seven countries. “Qala is a programme designed to train the next generation of Bitcoin and Lightning Network developers from across the African continent. The goal is to find, upskill and match African developers with Bitcoin companies from around the globe,” a statement on the website reads.
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As Starlink faces hurdles, Amazon launches competitor in Africa
Vodafone and Amazon are working on Project Kuiper satellite internet service, a competitor to Starlink in Africa. Vodafone and Project Kuiper, Amazon’s Low Earth Orbit satellite (LEO) communications initiative, today, September 5, 2023, announced a collaboration to use Project Kuiper’s network to extend the reach of 4G/5G services to more of their customers in Europe and Africa. Project Kuiper claims to connect geographically dispersed cellular antennas back to the companies’ core telecom networks. This means Vodafone and Vodacom will be able offer 4G/5G services in more locations without the time and expense of building out fibre-based or fixed wireless links back to the core networks. Shameel Joosup, CEO of Vodacom Group said “collaborating with Project Kuiper gives us an exciting new path to scale our efforts, using Amazon’s satellite constellation to quickly reach more customers across the African continent.” The Vodacom group plans to use Project Kuiper’s high-bandwidth, low-latency satellite network to bring the benefits of 4G/5G connectivity to areas that may otherwise be challenging and prohibitively expensive to serve via traditional fibre or microwave solutions. Amazon expects to begin beta testing Project Kuiper services with select customers by the end of 2024, and Vodafone and Vodacom plan to participate in that testing through this collaboration. The partnership comes at an interesting time when Starlink, a competitor to Project Kuiper, has been experiencing regulatory pushback, particularly in southern Africa. South Africa has banned the import, reselling and usage of the service, Zimbabwe has warned against the service, citing licensing while Botswana states that the service is yet to get the requisite licensing despite planning to launch in the country in Q3 2023. Have you got your tickets to TechCabal’s Moonshot Conference? Click here to do so now!
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Andrew Barden and Zekarias Amsalu: A conversation with the minds behind the Africa Fintech Summit
Noel K. Tshiani is the founder of Congo Business Network, which has partnered with the Africa Fintech Summit (AFTS) since April 2019 to mobilise startups and government officials from the Democratic Republic of Congo to participate in various editions of the summit held in Washington, Addis Ababa, Cairo, and Cape Town. He discusses the evolution of the summit from its inception to the upcoming November edition in Lusaka, Zambia, with Andrew Barden, lead organiser, and Zekarias Amsalu, co-founder of the event. Since its inception in 2017, the Africa Fintech Summit (AFTS) has grown into a key fintech event, not just in Africa, but globally. Can you share with me the initial vision behind the AFTS, and how it has evolved over the past editions, leading to the upcoming 10th edition in Lusaka, Zambia? Andrew Barden: The original vision, which remains our vision today, is that Africa is uniquely positioned to be a global leader in the financial technology industry, that much work remains to be done, and that fintech can transform people’s lives and economies through the power of meaningful financial inclusion and enhanced sustainable development. We take great care in organising each summit because we are uniquely positioned to be a catalyst for enabling investment, building balanced regulation, and facilitating collaboration across sectors and geographies. Over the years, AFTS has become the top stage for industry stakeholders to explore, debate, and connect around this shared vision for African fintech. The AFTS has supported millions in capital raise efforts and has been instrumental in shaping policy guidelines and startup ecosystems. From your perspective, what are some of the most transformational impacts the summit has had, especially concerning the African fintech landscape? AB: That is a spectacular question. Personally, I have always been fascinated by the entrepreneurial process. One of the programmes we have run since day one is our AlphaExpo Micro-Accelerator. This non-equity programme has enabled many startups across the continent to not only raise their public profile, but also to connect with potential investors and like-minded individuals. Some people have told me, “Africa has too many fintechs.” I do not agree with that thinking. I believe that as a pan-African ecosystem, we need to do everything we can to remove the barriers to entry that prevent entrepreneurs from taking the step from idea to execution. The summit is known for its cross-sectoral collaborations involving investors, entrepreneurs, and regulators. How do you manage to bring such diverse stakeholders under one roof, and what has been the secret sauce in fostering successful partnerships and new business ventures? AB: The short answer is a lot of phone calls, emails, and letters. Getting the right decision makers in the room is the result of years of building relationships across industries and geographies. At AFTS, we pride ourselves on not being a “pay-to-play” event; it is important to us that this diverse and dynamic industry is well represented at each edition. The secret sauce for us is our thought-leadership-first approach and our focus on keeping the majority of our audience at the C-suite and director level. These two things work together to allow for the organic discovery and conversation necessary for efficient dealmaking and relationship building. Given the variety of participants at the summit, from seasoned investors to budding fintech entrepreneurs, how do you ensure that there is a shared vision and synergy among attendees? What strategies have proven effective in aligning the interests of these diverse groups towards common goals? AB: Of course, everyone will have their own opinions and insights, but when it comes to the macro vision of Africa’s fintech industry as a means to drive meaningful financial inclusion and sustainable economic development, I have not met many people in our industry who disagree with that vision. However, when it comes to the specifics of how that vision can be realised, that is where people start to disagree. One of the benefits of being a sector-specific event is that AFTS attracts an audience that is already heavily focused on the fintech sector. With a wide net of different stakeholders attending AFTS, it is special to listen to many of the conversations on and off stage, because, while people may share a macro vision for African fintech, the different perspectives often help open people’s eyes to much more than their “focus area”. For me, it is less about aligning everyone’s vision and more about facilitating a conversation about a vision that is both geographically diverse and inclusive of different stakeholders. Last year, in collaboration with Congo Business Network, AFTS organised a panel in French at the 8th edition in Cape Town, South Africa. This year, you have renewed this partnership for the panel titled: “Fintechs and the future of financial inclusion in francophone Africa”. Why is it essential to emphasise the French-speaking region in Africa, and what unique opportunities and challenges does francophone Africa present in the fintech business? AB: There has been a divide that has cut off much of francophone Africa from participating in the conversations around financial technology in Africa. For me, it is important that we emphasise that Africa is not a monolith but rather a mosaic of cultures, languages, and more. I would say that not only is it important to highlight the francophone part of the continent, but it is also paramount that we facilitate the pan-African community to come together in a meaningful way. If you have ever been to an African Union meeting, there are many languages being spoken and translated at the same time. I see no reason why the private sector cannot do the same. As we look towards the 10th edition of the AFTS in Lusaka, Zambia, what should attendees expect in terms of content, innovation showcases, and opportunities? Further, as a co-founder, can you share some insights on the future trajectory of AFTS, especially in light of the rapid developments in African fintech? Zekarias Amsalu: We have a lot planned for the Lusaka edition and have been working closely
Read MoreExclusive: Leatherback denies losing funds to little-known SDQ Facilitators
Leatherback, a cross-border payments startup, is the subject of ongoing speculation within high-level online communities of the Nigerian tech ecosystem. The UK-based company, which raised $10 million pre-seed, is backed by ZedCrest Capital and provides cross-border payment services to customers in South Africa, Egypt, Uganda, India, the UAE, and Nigeria. An unsubstantiated report making the rounds on closed WhatsApp and Telegram communities claims that Leatherback lost a significant sum to an entity known as SDQ Facilitators–TechCabal will not describe the rumours in detail as they remain unsubstantiated. The initial source of the rumour also remains unclear. Leatherback told TechCabal it is aware of the rumours and denied all the claims. In an exclusive interview with TechCabal, Leatherback’s CEO Toheeb Ibrahim also denied other rumours that transactions with SDQ Facilitators had exposed the fintech to an ongoing investigation that has left its bank accounts frozen worldwide. “[It’s] terrible and laughable,” he said. “Our accounts are fully functional, and you can log in right now, create an account and complete a transaction.” Although Ibrahim denied any wrongdoing, losses or association with SDQ Facilitators, he said Leatherback has provided information on the former to the Nigerian Police Force and the Economic and Financial Crimes Commission (EFCC). While TechCabal could not independently verify the investigation details from the EFCC and the police, Ibrahim said, “We don’t know who they [SDQ Financials] are; we’ve not engaged them before, and we don’t have any links with them. If the authorities call at Leatherback, we’re inclined to respond; the extent of our investigation is to the extent the police have asked, ‘What do you know about these people?’ and we have provided those details to them. “Hopefully, they can find whoever is involved, but none of Leatherback’s funds are affected in this situation,” Ibrahim added. The company also pointed out that it is subject to regulation by the UK’s Financial Conduct Authority (FCA) and that all client’s funds are safe. TechCabal investigations turned up little information about SDQ Facilitators. The entity is incorporated in Nigeria, and details on the website of the Corporate Affairs Commission show one individual–Lawal Mohammed Kazeem–with significant control at the company. SDQ did not respond to TechCabal’s request for comments. Industry insiders told TechCabal SDQ is a Nigerian currency trading company that buys and sells the US dollar at a lower exchange rate than the prevalent parallel market value. Last week, TechCabal reported that Float, a fintech company originally founded to help startups with cashflow management, dabbled into currency trading instead. In a series of transactions that eventually went wrong, the startup lost money and could not pay at least $6 million in client deposits. It shows the precarious nature of attempting to profit from Nigeria’s arbitrage situation. With the greenback only readily available on the black market, some companies are tempted by promises of cheaper access to FX, but the results can be disastrous. A trader familiar with the situation but asked not to be identified so they could speak freely told TechCabal that the payoff for companies in currency trading was too much to be ignored. “A company I’m familiar with made N1.4 billion trading currencies in only one month,” they told TechCabal. Leatherback said it is familiar with people’s attempts to get cheaper foreign exchange through third parties; “We always encourage people to stop dealing with intermediaries when they need foreign exchange.” As to why it didn’t respond to the rumors, the company said, “Leatherback’s accounts are open, the platform is open. Instead of responding to these rumors, if they tell you Leatherback accounts are down, please log in and find out if it’s working. If you log in and it’s working, everything answers itself.”
Read MoreLagos Blue line will have to wait four weeks to be electrified
Lagos Blue rail line was inaugurated yesterday but its electrification process will take a month as the transport authority tests growing adoption On Monday, the Lagos state government launched its blue line, a 27km intra-city line connecting Okokomaiko to Marina and the first light-rail system in the city. Governor Babajide Sanwoolu was one of first passengers on Monday on a light rail system that has only been partially delivered after its conception in 2008. Yet the blue line will still have to wait four weeks to be electrified while it is still in testing phase, said the Lagos Metropolitan Area Transport Authority (LAMATA). Presently, the train is pulled across its electric tracks with a diesel locomotive. LAMATA told TechCabal that the situation is temporary. “What I don’t want us to be saying is that it is not electrified because people may want to run across the tracks,” Abimbola Akinajo, LAMATA’s Managing Director said. “The tracks are currently electrified.” While the blue line waits, to be electrified, the 37km red line, which is expected to be operational by the end of the year, will run on diesel. The red line stretches from Agbado to Ebute Meta and connects with the blue line at Marina. While the blue line will eventually have eleven stations, only five stations from Mile 2 to Marina, have been launched as phase one of the plan. Akinajo said the second phase of the blue line comprising six stations from Okokomaiko to Festac would be completed in three and a half years. “What we really want to do is add two more stations. We would include Alakija, Festac and bring that into operations in 18 months.” The Blue line is not open on both sides but currently operates like a monorail from Mile 2 to Marina. According to LAMATA, the both sides of the railway will work jointly once it is switched onto electric. Passengers worry about the price point Three passengers told TechCabal that they love the experience; the average travel time from Mile 2 to Marina is 20 minutes with a last mile provision at Marina to take you into Falomo, TBS and Victoria Island. However the price point is still a concern. While a ticket from Marina to Mile 2 is N750, the state government is providing a 50% discount until the end of the year. Akinajo said the system must generate enough to sustain itself. “Let’s start with what we have,” Akinajo told TechCabal. “Transportation is important. When we are able to move, the economy of Lagos grows.” In its unelectrified state, it carries a thousand passengers. The train is expected to carry 175,000 passengers daily with five stations in operation and will 500,000 passengers when the blue line is fully complete.
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