- December 15 2023
Mansa partners with Big Cabal Media to spotlight its Moonshot conference in the United States
Mansa, a US-based free streaming platform for black content, has partnered with Big Cabal Media, the parent company of TechCabal to advertise its tech conference, Moonshot. Mansa, the free ad-supported streaming platform that raised $8 million in April, has partnered with Big Cabal Media, the parent company of TechCabal, to showcase its annual tech conference, Moonshot, to Mansa’s stateside audience. Founded by actors David Oyelowo, Chike Okonkwo, and Nate Parker, with Zak Tanjeloff, a tech entrepreneur, this is the first partnership Mansa is announcing to promote black-owned businesses on its platform. Mansa will use unsold ad inventory, when available, to promote these businesses for free. The ads will include pre-roll and mid-roll, 15- and 30-second ads. The company already has an average session time between 60 and 65 minutes, after coming out of stealth eight months ago. “We are thrilled to partner with Big Cabal Media, a pioneering force in African digital media,” said David Oyelowo, co-founder of Mansa and three-time Golden Globe winner. “At Mansa, we believe in the power of our voices and innovative content. This partnership is a testament to our commitment to showcasing our best and brightest and fostering a vibrant global community.” Big Cabal Media raises $2.3m to expand its compelling line of digital products TechCabal’s Moonshot conference, Africa’s premier tech conference, brings innovators and thought leaders from around the continent to explore the latest trends and developments in African technology for two days in Lagos. The conference builds on TechCabal’s robust coverage of the African tech ecosystem. The publication crossed one million monthly web users in October, the largest monthly audience size in its ten-year history, tripling the number of readers from 390,000 in January. Mansa was founded to showcase black content to black audiences, which make up almost 40% of advertising-based video-on-demand audiences. For Mansa, which already has thousands of hours of licenced content and dozens of channels and has streamed tens of millions of minutes to date, spotlighting African businesses aligns with the company’s mission to bring more black stories to the world. TechCabal hits one million web users – the largest audience in its ten-year history
Read More- December 15 2023
Nigerian consumers feel the pinch as inflation hits 28.20%, food costs bite
Nigeria’s inflation rate has jumped for a record 11th time this month, adding pressure on the central bank to hold a rate hike meeting In November, Nigerian households felt the pinch even more as consumer prices rose for the eleventh consecutive month this year, making it likely that the country’s Central Bank will raise interest rates. Official data from the National Bureau of Statistics (NBS) showed that headline inflation, which tracks the prices of food, energy and other commodities, rose to 28.20%. Food prices continue to be a major cost component for many Nigerians. The price of staples like bread and yam rose. Overall, November’s food inflation figure was 32.84%. “The inflation rate will continue to rise throughout 2024 because of low economic productivity,” said Mayowa Badejo, a partner at 213 Capital, an investment and risk advisory firm. “The only way to reduce the impact is to boost local production, particularly agriculture and energy sectors which are responsible for over 50% of our inflation rate.” The Director of the Communications Department of the International Monetary Fund (IMF), Julie Kozack recently called on the leadership of the Central Bank to further hike interest rates at the next rate meeting. However, the continuous silence of the Central Bank Governor on rate hike meetings does not inspire any hope for analysts that inflation would be curbed. Nonetheless, Cardoso, in a recent meeting with the Joint Committee on Banking, Insurance, and Other Financial Institutions assured that inflation would slump in 2024. “Inflation pressures may persist in the short-term but are expected to decline in 2024,” he said during the presentation yesterday at the nation’s capital.
Read More- December 15 2023
OPay faces scrutiny over weak KYC system: impersonation, account tiers raise red flags
Despite rising fraud concerns, Nigerian financial technology company OPay has continued to adopt lax registration processes that make its digital platform vulnerable to bad actors, checks by TechCabal have revealed. Since it launched in 2018, OPay has become one of the biggest mobile money services in Nigeria and has pursued an elaborate marketing campaign to win over new customers, particularly unbanked people who do not have a bank account. To draw in unbanked customers, the company joined other fintechs and commercial banks to simplify the registration process for new users, including removing strict requirements for identity verification for the most basic bank account type with limited features. However, in recent months, these lax standards have drawn criticism following rising concerns over financial fraud in the country. Now, checks by TechCabal show that OPay continues to allow new users to sign up to its platform without proper verification. After submitting basic personal information, new customers to the Chinese-owned fintech app can verify their identity using a phone number, a National Identification Number (NIN), a bank account number or a bank verification number (BVN). Users must also submit a real-time facial verification to confirm their identity. OPay uses a tiered verification process — ranging from tier 1 to 4 — allowing users to access a larger suite of services once they submit a BVN or an NIN. However, multiple tests show that OPay’s basic account verification process for tier 1 is weak, and the facial identity system is porous, which could allow bad actors to register for the service and begin carrying out transactions within 60 seconds. In one test, OPay allowed a user to sign up on the service using basic personal information, name and birthday, about a celebrity to register. While OPay requires users to submit either a bank account or phone number for verification, the app did not proceed to verify the details. Although OPay claims to require facial recognition to complete the registration process, perhaps to match the record to the bank account, the app merely took a picture and approved the user. A man completed the facial recognition while the newly created account was female. OPay’s system did not flag this anomaly, even days after creating the account. The checks show the weaknesses in OPay’s account management processes, which could make it a haven for bad actors looking to impersonate and defraud unsuspecting victims. “Face verification is not solving for anything if it does not match the BVN details,” said a KYC expert who asked not to be named so they could speak freely. The expert suggested that OPay should collect a user’s BVN before verifying their face. OPay did not immediately respond to TechCabal’s request for comments. Under OPay’s basic account type, tier 1, users can deposit up to N300,000 in their mobile money wallets, and make transactions of up to N50,000. While these transaction limits are restricted, the ease of creating dozens of fraudulent OPay accounts raises concerns about security practices at the company. In the first week of December, the Central Bank of Nigeria (CBN) warned against such a weak verification process. The banking regulator tasked all financial services to implement stricter know-your-customer (KYC) processes and disable bank accounts or mobile money wallets that have not been verified with a BVN or a NIN. Financial services are expected to comply before the deadline in April 2024. *Additional reporting by Faith Omoniyi
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- December 15 2023
TechCabal Daily – Jumia shuts down Jumia Food
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Twiga Foods’ CEO, Peter Njonjo, is taking a breather from the hustle. His company is grappling with a hefty debt collection lawsuit from Incentro Africa, of over $200,000, but he is taking a six-month sabbatical amidst the court drama. This is your sign to take that break from work if you need it. Also, If you are a founder, please take this survey. In today’s edition Jumia shuts down Jumia Food MAKA raises a $2.65 million pre-seed funding CCHub finds a new leader to replace Nigerian minister Techstars funds 12 startups in second cohort Funding tracker The World Wide Web3 Job openings E-commerce Jumia shuts down food delivery business across seven markets Image: courtesy of Jumia Jumia has shut down its food delivery business to cut costs. The African e-commerce company has decided to shut down its food delivery business, Jumia Food, across several African countries, including Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria by the end of December 2023. Why? Jumia, facing a Q3 2023 loss of $19 million, has been reevaluating its business segments to navigate challenging market dynamics since Q4 2022, where the company made a full-year loss of $207 million and a Q4 loss of $49.2 million. Jumia CEO, Francis Dufay highlighted the food delivery sector’s tough unit economics and substantial losses, attributing the closure to increased competition and rising operational costs. Over recent months, Jumia has implemented significant cost-saving measures, including a 20% reduction in its workforce (900 employees), relocation of 60% of top management from the United Arab Emirates to the respective African countries, and substantial cuts in advertising and marketing spending. Despite Jumia Food contributing 11% to Jumia’s overall gross merchandise value, it has consistently operated at a loss in the 11 North, East, and West African countries where it operates. While the company initially shifted focus to small-ticket everyday items in 2021, Dufay has redirected efforts and expanded into smaller Nigerian cities. Zoom out: The decision to shut down Jumia Food follows a trend, with the company previously discontinuing the service in Egypt, Ghana, and Senegal due to sub-scale operations and challenging economics. 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. Funding MAKA raises $2.6 million pre-seed MAKA CEO Diana Owusu-Kyereko What I ordered vs what I got? MAKA has got you. MAKA, an African fashion and beauty e-commerce platform, has raised a $2.65 million pre-seed. MAKA will use the funding to grow its workforce, streamline its operations, upgrade its technology, and strengthen its presence in Ghana and Nigeria The funding round was led by 4DX Ventures and Janngo Capital. Palm Drive Capital, angel investor Jonathan Shipman, founder of EVP and Twitch founding member, and executives from delivery platform Wolt also participated in the round. TikTok but for fashion: Think of MAKA as an upgraded version of TikTok where you can buy and review clothes that fit your style. Diana Owusu-Kyereko, ex-CEO of Jumia Ghana, launched MAKA in 2021 as an interactive social commerce platform, that allows both creators and customers to discover products tailored to their styles through live try-on hauls, reviews, and user-generated content. MAKA aims to solve the trust issue from buying clothes online—what I ordered vs what I got. To combat the trust barrier, MAKA leverages video testimonials from trusted creators. Seeing creators they admire recommend and demonstrate products firsthand builds trust and confidence for these users. Introducing Virtual Accounts, with Paystack-Titan Reliably accept 99% of your bank transfer payments in under 8 seconds with Paystack-Titan. Learn more → Startups CcHub gets new leader Image source: CcHUB Ojoma Ochai has been appointed Managing Director of Africa’s largest innovation centre, Co-creation Hub (CcHUB). Ochai takes the helm from Bosun Tijani, who now serves as Nigeria’s minister of communications, innovation and digital economy. Who is Ojoma? Ojoma Ochai has over 20 years in the creative and technology sectors. She was previously the Managing Partner at the Creative Economy Practice of CcHUB. Ochai held key positions at the British Council including Regional Director of Arts and Creative Economy Programmes, Sub-Saharan Africa, Director of Arts, Nigeria, Director of Arts, West Africa, and Director of Programmes. She was also a Board Member of BTrust—an organisation set up by Jay Z and Jack Dorsey to support blockchain development on the continent. She was an Entertainment Sector Specialist at the World Bank Growth and Employment Project. She is also a member of the UNESCO Global Expert Panel on the 2005 Convention on Cultural Expressions where she has delivered projects in a range of locations around the world particularly in Africa and the Caribbean. Ochai is also co-founder of Pixel Ray Studios, a global film and audio-visual content infrastructure development company currently developing projects in Africa and the Caribbean. Lights out: With almost 20 years of progressive experience in the creative and technology sectors, Ojoma Ochai takes over the helm at CcHUB which has been instrumental in Nigeria’s tech ecosystem. CcHUB with roots in Nigeria, Rwanda, Kenya, and Namibia launched in 2010, as a frontier for digital innovation in Nigeria. How do Nigerians save and spend? Did you know that 64% of Nigerians save a portion of their monthly income? Read PiggyVest’s first-ever savings report to see more about how Nigerians save and spend here. Funding Techstars and ARM Labs to invest $1.4 million in 12 African startups Image source: Techstars Techstars, an African startup investor has partnered with ARM Labs, a Nigerian accelerator, in its second cohort for its Lagos-based accelerator programme. The cohort comprises 12 startups from Ghana, East Africa and Nigeria, and has four teams with at least one female co-founder in each startup. Funding and support: Each startup receives $120,000 in funding, along with valuable benefits like $400,000 in cash equivalent hosting, accounting, and legal support, with the comprehensive package, exceeding $5 million in
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- December 14 2023
Entering Tech #52: How to become a comms professional
Here’s how you can talk your way into tech! 14 || December || 2023 View in Browser In partnership with #Issue 51 How to become a comms professional Share this newsletter Greetings ET readers In today’s edition, we’re taking a look at one of the more subtle ways to enter tech: comms. Many tech companies, or tech-enabled ones, have communications or content teams with different goals from content marketing and sales, to public relations. PiggyVest, for example, has a pretty nifty content team with skilled comms professionals who help people understand what the business does. If you’d like to learn more, then hang on tight. P.S: In next week’s edition, we’re bringing you 2024 predictions—and yes, one of them is that you will, unsurprisingly, discard your New Year resolution after one week. Faith Omoniyi & Timi Odueso. Tech trivia questions Some trivia before we begin. Answers are at the bottom of this newsletter. What was the world’s first digital and programmable robot? Who is a communications professional? Being a communication professional in tech is not the most popular skill out there, but it is a surefire way of entering into tech. Joyce Imiegha, a PR and communications professional, says that if you’re looking for significant room for creativity, autonomy impact and recognition for your work, then being a communications professional is the right way to go. Joyce Imeigha You must have heard the terms “content creator,” “content writer,” and “social media manager“, and while these roles appear eerily similar to what a communications professional does, they are different. Joyce defines it as having the expertise, training, knowledge, and skills to effectively convey messages, build relationships, manage perceptions, and drive results to enhance organisational and individual goals through communication strategies and interactions. Phew, you must be wondering all of these things for one person. Image source: YungNollywood Put simply, a communications professional is someone who helps people understand and connect with a company. They act as the company’s voice, ensuring clear and consistent messaging across all channels. Communication professionals do this by using language, design, and other tools to create clear, concise, and engaging messages. Now that we know who a communications professional is let’s delve into the skills you need to become a badass communications professional communicator. Communications is an umbrella that covers all forms of an organisation’s internal and external communications. PR is just one slice of the cake that focuses specifically on enhancing the organisation’s image or reputation. So, a PR personnel ensures that the company looks good on the outside at all times, while a communications professional ensures the communication of a company’s message regardless of the circumstances. “In terms of functions, communications roles centre around creating content for specific channels and audiences, while PR roles involve media relations, storytelling, reputation management and crisis management,” Joyce said. Comms professionals take on different titles like Communications Manager, Public Relations Officer, Engagement Manager, or even Director of Strategic Communications. Simplify with Rowvar Simplify property investment with Rowvar. Start here. How it works Skills needed: Writing, listening, public speaking, creativity, strategic, critical thinking, and interpersonal skills. Gadgets needed: Laptop, internet access, pen and paper, and lots of coffee. So now that we know who comms professionals are, what kind of tasks do they do? Here’s teh five most important things communicators do. Developing communications targeted at employees or external stakeholders: This includes writing newsletters, announcements, and other materials for employees to keep them informed, motivated, and aligned with company goals. It may also involve developing press releases, social media content, and other materials to reach target audiences like customers, investors, or the general public. Managing messaging across channels and audiences: Comms professionals maintain a consistent voice and message across all internal and external communication channels to build brand recognition and trust. They also adapt communication to different audiences and platforms to ensure it resonates effectively with each group. Building engagement, trust, and loyalty for brands: This may involve using various communication channels and formats like podcasts or videos to make information accessible and engaging for different audiences. Overseeing all internal and/or external communications strategy and messaging: A communications professional acts as a bridge communicating effectively between leadership and staff, ensuring both sides are heard and understood within a company. A comms professional also represents the company, serving as a spokesperson for the company to external audiences, such as the media or the public, upholding its values and reputation. Finally, comms professionals liaise between leadership and staff or serve as public-facing representatives for all inquiries to the company. Money matters So how much do comms professionals earn?Raise your hands if you’re not learning a tech skill for the money. No hands, of course . “Generally, communication professionals can have competitive compensation packages, but they may not always match the salaries in certain technical or high-demand fields like software engineering, marketing, and so on,” Joyce tells me. While the salaries may not always match the salaries of high-demand fields, “the level of experience and expertise you bring to the role can impact your earning potential.” Senior or specialised roles often attract higher salaries and the level of education and relevant training can also influence earning potential. So, Joyce’s advice to you is to embrace continuous learning. Read Piggvest’s Grown Ups for free Experience a journey of friendship, financial twists, and the hilarious chaos that comes with being a Grown-Up in Nigeria. Read Grown Ups for free. You can learn comms too Check out some of these resources that can upskill you into a great communicator. Internal Communications Fundamentals on Udemy Price: $13 (Paid Certificate available) Duration: 2 hours Tools Needed: Internet + phone Level: Beginner Get Course Strategic Communications on Udemy Price: $13 (Paid Certificate available) Duration: 2 hours Tools Needed: Internet + phone Level: Beginner and Intermediate Get Course Understanding Corporate Communications on Coursera Price: $49/Month Duration: 3 weeks Tools Needed: Internet + laptop Level: Beginner Get Course How to Implement and Evaluate Communication Campaigns on Coursera Price: $49/Month Duration:
Read More- December 14 2023
Jumia shuts down food delivery segment in race to profitability
In its continued cost-cutting spree, e-commerce company Jumia has shut down its food delivery business in Nigeria, Kenya, Morocco, Ivory Coast, Tunisia, Uganda, and Algeria. Jumia, an African e-commerce company, will shut down Jumia Food, its food delivery business, by the end of 2023 in a new round of cost-cutting. The unprofitable e-commerce company, which lost $19 million in Q3 2023, has changed its strategic focus and doubled down on its ambition to reach profitability since it named Francis Dufay as CEO last year. Dufay told Reuters that the food delivery segment has challenging unit economics and big losses. He also blamed the closure of Jumia Food increasing competition and cost of operations. “There is downward pressure on the commissions that we make and upward pressure on marketing costs because everyone is fighting for customers.” He also described the segment as not offering the same “upside potential” as the company’s physical goods business Dufay is choosing pragmatism “Our priorities need to change,” Dufay told TechCabal in September. Since then, Jumia has laid off 900, or 20%, of its employees and moved 60% of its top management team from the United Arab Emirates to the respective African countries to save costs. It has also drastically cut its advertising and marketing spend. Closing Jumia Food, an unprofitable business segment since its launch in 2013, is another push to focus on business segments that can drive profitability. While Jumia began focusing on small-ticket everyday items in 2021, Dufay has changed that, and he has also begun a push into smaller Nigerian cities. Jumia Food’s struggles By the end of Q3 of 2023, Jumia Food has a gross sale of $84 million—11% of Jumia’s overall gross merchandise value. However, the food delivery business has never been profitable in any of the 11 North, East and West African countries it operates in. The shutdown of the food delivery arm has been years in the making. Before this complete shutdown, the e-commerce giant discontinued food delivery in Egypt, Ghana, and Senegal “where this activity was sub-scale, resulting in unit economics dilution with limited consumer lifetime value upside.” In Jumia’s press release about the shutdown, Antoine Maillet-Mezeray, EVP of Finance & Operations of Jumia, said, “Food delivery remains a business with very challenging economics, in Africa and across the world, and we want to focus our efforts on our physical goods e-commerce business in the eleven markets where we operate.” The company, with a liquidity position of $166.3 million per its Q2 2023 reports, is cutting off the food delivery segment to allocate its resources to more promising segments like its core physical goods delivery and payment service, Jumia Pay.
Read More- December 14 2023
Breaking: Techstars and ARM Labs partner to invest $1.4 million in 12 African startups
Techstars, one of Africa’s most active startup investors, has unveiled 12 startups in its second cohort for its Lagos-based accelerator programme. The startups will receive $120,000 in funding. Techstars, a global accelerator with over 3,000 companies in its portfolio, has announced the second cohort of its Africa-focused accelerator programme in partnership with ARM Labs, a Nigerian accelerator. The cohort includes a dozen startups operating in Ghana, Nigeria, and East Africa and has four teams with at least one female co-founder. The selected startups will receive $120,000 in funding and $400,000 in cash equivalent hosting, accounting and legal support and other benefits worth more than $5 million. “The current market dynamics means that founders need a combination of financial support as well as technical assistance and access to networks in order to build resilient businesses,” Oyin Solebo, managing director, ARM Labs Lagos Techstars Accelerator, said. After a record-breaking 2022, with almost $5 billion raised, Africa’s tech funding party fizzled in 2023. Depending on where you consult for data, they all suggest a slowdown in funding for each quarter of this year compared to last year. This funding winter meant that investors became more conservative and applied measured investing. Nevertheless, several investors and investment funds are still backing startups on the continent. Techstars, which has invested in more than 70 African startups, is broadening the scope of startups it is investing in with its second cohort. The first cohort’s focus was on fintech and proptech startups, but this cohort has selected startups in fintech, logistics, e-commerce, healthtech, renewable energy, and the future of work. “Our second cohort truly showcases, and perhaps also epitomises, the wealth of talent, innovation and ingenuity that can be found within the African tech ecosystem,” Solebo added. In addition to the funding, the cohort will receive mentorship sessions from notable experts in Africa’s tech ecosystem, like Tunde Kehinde, the CEO of Lidya; Bode Abifarin, the Chief Operating Officer at Flutterwave; Tingting Peng, the Chief Capital and Strategy Officer at Moove; Kevin Simmons, a partner at LoftyInc; Lola Esan, a partner at EY; and Yischai Beinisch, the Head for Shell’s West African Emerging Market Power. These experts will provide the startups with comprehensive guidance and specialised services to support their growth journey. The startups will also access Techstars’ 10,000 founders, alumni, and mentors network. Meet the selected startups in this cohort: 24Seven: founded by Olufemi Idowu, is an asset-light marketplace that enables small businesses and convenience stores to order inventory on credit with one-hour doorstep delivery. Beauty Hut: founded by Subuola Oyeleye, is an e-commerce startup that allows users to shop from their favourite beauty brands in their e-commerce web store and mobile app. Eight Medical: an end-to-end platform that connects users in need to emergency medical resources (such as hospitals, ambulances, personnel, information, and credit), reducing waiting times from an average of 3 hours to 10 minutes or less. GetEquity: facilitates access to investment opportunities by SEC-accredited providers, reducing entry barriers through investment aggregation across various asset classes. JumpnPass: founded by Tunde Ademuyiwa and Qudus Quadry, is a mobile self-checkout platform that enables shoppers to use their smartphones to scan product barcodes, pay for items, and skip long queues One Plan: helps workers in Africa’s informal economy create affordable financial plans, making it easier to start a retirement plan, access low-interest credit, and access health and life insurance coverage. PBR Life Sciences: founded by Ayodeji Alaran, offers pharmaceutical, consumer healthcare, and medical device companies fast and easy access to high-quality market data and insights, helping them make objective decisions on product pricing, volumes, and company strategy. PressOne Africa: provides African businesses with deeper insights into phone conversations with customers through a communication platform that provides conversation intelligence and call monitoring. Rana: founded by Abraham Mohammed and Mubarak Popoola, democratises access to clean and reliable solar systems for SMEs and residential customers through affordable long-term solar subscriptions, replacing the need for expensive, unreliable, and toxic backup generators. Surge Africa: founded by Kumar Shourav and Ebrahim Essop, allows African individuals, micro-entrepreneurs and MSMEs to make instant cross-border transfers and pay up to 80% less in fees. Swoove: empowers logistics companies in emerging markets to digitise and scale their businesses with dispatch automation, fleet management, tracking, telematics, and a wide delivery network. Veend: founded by Olufemi Olanipekun and Ebenezer Ajayi, enables individuals and businesses with verifiable income to access funds on-demand, addressing their needs for emergency funds or working capital The program will conclude with an invite-only Demo Day on February 22nd, 2024, where founders will showcase their progress.
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- December 14 2023
TechCabal Daily – MTN and IHS Towers fight
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday Flutterwave, an African fintech giant, has named five new executives across its risk, compliance, and expansion departments one month after Oneal Bhambani, its former CFO, abruptly left the company. Find out who the new guys are! Also, our insights team is researching founders’ outlook for 2024. If you are a founder, please take this survey. In today’s edition MTN and IHS Towers fight attract federal warning American billionaire backs $1 billion Congo carbon plan Clean stove distributor gets $10 million backing Kenya introduces electronic travel authorisation Cell C promotes two executives The World Wide Web3 Opportunities Telecom MTN and IHS Towers fight attract government intervention From L to R, Sam Darwish; IHS Tower CEO $ Karl Toriola; MTN NG CEO MTN Nigeria and IHS Towers are locking horns. The federal government of Nigeria has issued a stern warning to telecommunications giants MTN NG and IHS Towers, asking them to not disrupt telecom services amidst their ongoing collocation dispute. What dispute? The conflict revolves around the lease of telecom towers. In September, MTN NG announced that its tower operations would be run by the Nigerian subsidiary of the American Towers Corp (ATC) from 2025. ATC will be taking over from IHS Towers—whose lease to run MTN’s 2,500 network sites—will expire in 2024 and 2025. MTN NG recently finalised the deal with ATC asserting that this transition would not disrupt the country’s network connectivity. However, IHS Towers has expressed concerns, suggesting potential disruptions, and offered improved commercial terms to MTN in an attempt to retain the contract. MTN NG has not budged, reiterating the finality of the agreement. There was a boardroom fight: Prior to this development, there was an ongoing boardroom fight between IHS Towers and MTN Group over MTN’s request for more control of the tower company. MTN Group holds 26% of IHS Towers but only controls 20% of the voting share. MTN had said that it could not sell its non-voting shares and wanted its stake in the company to be reflected in its voting power. However, IHS Towers said in response that the proposals were not in the company’s best interests. What now? Concerned about the lingering collocation dispute, the government is threatening severe sanctions in case of service quality degradation. The Nigerian Communications Commission (NCC) has also issued a gag order, restraining the disputing parties from making inflammatory public statements. 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. Climate American billionaire backs Congo’s $1 Billion Carbon credit project Investor, Mark Cuban Renowned billionaire investor Mark Cuban has backed Congo’s $1 billion carbon project. What project? The project, spearheaded by climate startup dClimate, aims to generate carbon credits worth $1 billion by preventing deforestation in the Congo Basin, the world’s second-largest tropical forest. This initiative will help combat the alarming rate of deforestation and mitigate carbon dioxide emissions. Reducing emissions: The initiative, led by climate startup dClimate, intends to produce $1 billion worth of carbon credits by stopping deforestation in the Congo Basin, the world’s second-largest tropical forest. This programme will lessen carbon dioxide emissions and contribute to the fight against the startling rate of deforestation in the Congo Basin. Climate has also signed a deal with the Democratic Republic of Congo to capture and store 100 million tons of carbon dioxide for 10 years. The startup plans to achieve this by safeguarding approximately 500,000 hectares of peatlands from deforestation. To guarantee that deforestation is effectively stopped, dClimate will carefully monitor the protected territory. The vital information gathered from this monitoring will help build a carbon-credit registry and make it easier to sell carbon credits on the open market. Lights out: According to World Bank estimates, Congo’s forests absorb 822 million tons of greenhouse gas annually, worth billions of dollars. In addition to assisting in the fight against climate change, this project will benefit local communities and promote sustainable economic growth by protecting the Congo Basin’s rich biodiversity and halting deforestation. Introducing Virtual Accounts, with Paystack-Titan Reliably accept 99% of your bank transfer payments in under 8 seconds with Paystack-Titan. Learn more → Climate BURN secures $10 million for expansion Image source: BURN In more climate news, BURN, a Kenyan cook-stove maker has secured a $10 million investment from the Africa Go Green Fund (AGG), managed by Cygnum Capital Asset Management. The funding will enable BURN to distribute clean cook-stoves across Mozambique, Nigeria, and the Democratic Republic of Congo. Per TechMoran, the plan is to provide cook-stoves to 50,000-150,000 customers in each country. Launched in 2011, BURN uses funding like this—carbon funding—to subsidise the cost of cook-stoves, making them affordable for low-income households. BURN’s latest funding aims to reduce approximately 6.9 million tons of carbon oxide (CO2) emissions—the continent’s leading cause of CO2 emissions. According to its site, BURN has sold over four million stoves to low-income African households who rely on charcoal and firewood for cooking. Zoom out: This week, BURN sold Africa’s first cook-stove carbon credits futures, allowing the company to get funding in the future based on the expected emissions reduction from their cook stoves. The move will also help them provide more of the cook stoves to families across Africa. How do Nigerians save and spend? Did you know that 64% of Nigerians save a portion of their monthly income? Read PiggyVest’s first-ever savings report to see more about how Nigerians save and spend here. Tourism Kenya to scrap visas for all visitors, introduces e-travel authorisation Travellers will no longer need a visa to visit Kenya. The country has introduced a digital platform that eliminates the need for traditional visa applications. Starting January 2024, international travellers can obtain an electronic travel authorisation in advance. This comes merely two months after Kenya scrapped visa requirements for Africans, to boost economic growth, intra-African trade, tourism and investment. A
Read More- December 13 2023
Flutterwave names new executives a month after CFO’s departure
Flutterwave, Africa’s fintech giant, has hired several high-profile executives to help lead its risk and compliance efforts one month after the abrupt exit of its CFO. Flutterwave, the African fintech giant widely believed to be considering an Initial Public Offering (IPO) on the NASDAQ, has named five new executives across its risk, compliance, and expansion departments one month after Oneal Bhambani, its former CFO, abruptly left the company. Today, Flutterwave shared the profiles of its new executives. Amaresh Mohan, Chief Risk Officer, joins from GoTo Group, one of Indonesia’s largest startups. Amresh also had leadership positions at Stripe and Paypal. Stephen Cheng, who has held C-level positions at American Express and First Data, is the EVP for global expansion and payment partnerships, a role he has had since July. Amanda Ortega, an experienced regulator in Wyoming, will lead Flutterwave’s regulatory standards and compliance in North America as Head of Compliance for the United States. Flutterwave recently acquired money transfer licences for 13 states in the United States. Steven Huynh has also joined as VP of global expansion and payment partnerships, while Chris Davis joins as VP of risk and compliance operations. Adewale Ayantoye joins as VP of risk management. These new executives could help transmit confidence to the public market and further fuel speculation that Flutterwave remains serious about its IPO plans. In August, Olugbenga Agboola, Flutterwave’s CEO, shared that the company was moving ahead with its IPO plans on the NASDAQ but declined to give a timeline. While that provided fuel for the speculative fire, the exit of Bhambani, the company’s CFO and two other finance executives, in October, may have called those plans into question. Today’s announcement of new hires may provide much-needed confidence as Flutterwave recovers from legal troubles in Kenya and allegations of workplace bullying that called its reputation into question. In February and March 2023, TechCabal reported that Flutterwave lost a little over N3 billion in three security incidents. While Flutterwave denied all three incidents, it obtained court orders to freeze several Nigerian bank accounts within the same period. In 2022, Flutterwave was sued by the Asset Recovery Agency (ARA), over money laundering and compliance concerns. Last month, the case was formally withdrawn, opening the door for Flutterwave to apply for a Kenyan payments and remittance licence. Last month, Flutterwave acquired an international transfer license in Malawi; the startup also expanded into India recently, and it received an Egyptian payment service license in June.
Read More- December 13 2023
In conversation with Yacine El-Mahdi Oualid, Algeria’s minister of knowledge economy, startups, and micro-enterprises
Algeria, the North African country that sits at the crossroads of Africa, Europe, and the Middle East, wants to become one of the biggest players in Africa’s tech ecosystem. And its government is backing this big ambition. Through its ministry of knowledge economy, startups, and micro-enterprises, Algeria isn’t only hosting arguably the biggest government-backed startup event on the continent—the African Startup Conference—, but also implementing a strategic playbook to drive its local tech ecosystem and foster collaboration across Africa. In a chat with Tomiwa Aladekomo, CEO of Big Cabal Media, on the sidelines of the three-day conference, Yacine El-Mahdi Oualid, Algeria’s minister of knowledge economy, startups, and micro-enterprises, disclosed that the country has a goal to build a strong and interconnected startup ecosystem across Africa. That explains why government delegations from several African countries—notably Nigeria, South Africa, Egypt, and Tunisia—were in attendance at the event, the minister shared. “I believe that if we want to succeed, we have to work together. Some issues can best be addressed on a continental level and everyone should make enough efforts,” he said. Oualid shared that the growth of Algeria’s tech ecosystem is largely driven by government support, citing the creation of a dedicated ministry for startups which has worked on putting in place legal frameworks to support startups. The Algerian government has also given incentives for startups including tax exemptions—startups in Algeria are exempted from tax for the first five years after their formation. There is also the Algerian Startup Fund, which the minister describes as “one of the largest state-backed funds ever created in Africa.” While acknowledging that some foreign capital has flowed into the Algerian tech ecosystem, the minister noted that the government’s goal is for Algerian startups to be able to raise money locally. The thinking is anchored on the belief that there is a huge potential for funding investments in the African market and government intervention is needed to unlock it. “The African startup ecosystem hasn’t reached its full potential. There are still lots of things to do at the policymaking level and the incentives government can offer startups. We have to move from a resource-based economy to a knowledge-based economy. We can do this by investing more in startups, innovation, and research and development,” the minister shared. Click here to watch the full interview.
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