After winning a $1 million prize, here is what’s next for Tanzanian agritech startup NovFeed
Tanzanian agritech startup NovFeed co-founders Diana Orembe and Otaigo Elisha speak on NovFeed’s victory in the Milken Institute and Motsepe Foundation Innovation Prize. Last month, Tanzanian biotech startup NovFeed won the Milken Institute and Motsepe Foundation competition’s $1 million grant prize money for agritech innovation. NovFeed’s product offering involves the use of biomass to produce fish feed. The feed is cheaper to produce and offers more nutritional value compared to current products in the market, the company claims. TechCabal spoke to Diana Orembe and Otaigo Elisha, co-founders of the startups, to learn more about the product, their success in the competition, as well as their thoughts on the state of agritech in Africa. Please tell us more about NovFeed and the problem you are trying to solve through your solution. Diana Orembe: NovFeed was born back in 2019 with the goal to help to promote sustainable aquaculture by producing alternative protein to replace the unsustainable fish meal and soybean in the aquafeed. The aim of this was to produce an affordable feed that can help the farmers increase their profitability. The scale of the problem is in the fact that currently, aquafeed globally is produced by using fish meal. Fish meal is unsustainable but it still accounts for over 70% of production costs as it is mostly exported from Vietnam and Netherlands. So we saw this challenge and we researched it. We then decided to apply science as a tool to help overcome this challenge and find a way to help the farmers.Our biotechnology solution involves collecting the organic waste that was supposed to end up in the landfills and then using bacteria to turn this organic waste into a renewable protein ingredient with a very high protein profile of around 70% and other valuable and important nutrients. Along the process, we also identified that the byproduct that we had after harvesting the protein ingredient is a liquid biofertilizer with a lot of probiotic bacteria that has huge potential in regenerating the soil and supporting the organic farming of fruits and vegetables. What challenges would you say you have faced in trying to scale up the solution? Otaigo Elisha: To start with, our solution is very novel and has high-tech aspects. This makes accessing the equipment we need to scale to an industrial scale, both in terms of production and research and development, rather expensive. Remember that we are continually trying to discover other products like enzymes and additives which can be produced through the system and that requires constant research and development. DO: In addition, scaling biotech companies in Africa is also another challenge that we faced because it’s an industry that has not yet grown extensively. So sometimes you need inspiration, mentorship, etc, but that’s not available. Also, talent is also hard to come by too in the form of scientists. Most of these would rather work with established companies than a startup. In terms of traction, how much would you say you have attained so far? DO: We have been able to continue to do R&D and discover a consortium of microbes that can convert this organic waste into protein biomass. Secondly, we have tested the solution on real customers, the farmers and we have collected a lot of metrics in terms of the growth performance, survival rate and in terms of digestibility of the product. Additionally, we have also increased economic value for farmers in terms of reducing cost and also reducing the maturation period of the fish. We have attracted several other partners that are working with us in different capacities, from coaching to mentorship training and other areas. How was your experience with the competition from deciding to enter to eventually winning the $1 million prize money? OE: The Milken competition runs for almost one year. So we started by submitting our idea on the platform which also has resources to improve it. This also came with the Stanford course that we attended for two weeks. We also got a mentor with a background in biotechnology which was key for us to utilise in developing our business model. We then made it to the top 25 and submitted the research protocols and proceeded to conduct our field trials. We collected a lot of valuable information from the animal feed manufacturers, farmers, and consumers of fish. Those insights helped us to develop a final report that showed how this type of alternative feed helped farmers cut costs, increase the performance at the farm level in terms of the fish growth rate, and also in terms of cutting the maturation period from eight to seven or six months. Once we were done in that phase, we submitted all the documents plus the data that we collected and other information that helped the judges to decide the top five and eventually the grand prize. NovFeed intends to use the prize money to expand production capacity. (Image source: Provided) What will you use the $1 million prize money for? OE: We are planning to use the prize money to pilot NovFeed and make sure that we are producing the final product at a bigger capacity so that we can reach more farmers and increase our impact across Tanzania and beyond. But also, we plan on investing in continuous R&D so that we can continue to improve the efficiency of our product and also innovate new products. DO: We also plan on using the prize money to build out our own lab. So far, we have been utilising the university lab for the production of the biomass and also trialling it. In that way, we can greatly accelerate our turnaround time. What role do you think biotech innovations like NovFeed’s can play in growing agriculture in Africa? DO: Speaking on a broader scale, agriculture in Africa employs a significant portion of the population. For example, in Tanzania, it employs almost 70% of the population. We see currently that the same sector is facing a lot of challenges including
Read MoreTaxi drivers ban Uber, Bolt from Soweto malls for three months
A compromise agreement has been reached between ride hailing drivers and taxi drivers following violence over customers in the last few days. E-hailing drivers, including Uber and Bolt, have been banned from dropping off or picking up passengers inside malls in Soweto for a period of three months. This ban follows violent activities over the past few days which saw some Bolt and Uber vehicles burnt by taxi drivers who accused the operators of stealing their customers in the malls. The ban was introduced as a form of a ceasefire agreement between the taxi operators and ride-hailing drivers. “Whether the solution is the best now is uncertain, but it is a solution nonetheless. At the end of the day, we must try something to ensure the safety of the community and us,” said Vhatuka Mbelengwa, national spokesperson for the South African E-hailing Association. The discussions between the e-hailing association and the Soweto Taxi Services (STS) were facilitated by the City of Joburg. The ban will be in place until a permanent solution is found. For the taxi drivers, chairperson Myekeleni Madlala also welcomed the agreement. “This is an agreement and not a final one. We are doing this for the safety of everyone and to ensure everyone is protected. We have agreed they will not enter the malls and will only stop at the gates of the malls. A permanent solution will still be discussed at a later stage,” he added. The city of Johannesburg, on the other hand, states that discussions for a more permanent solution will take place this Friday to plot a way forward. “We will meet again on Friday to finalise the last solutions. However, for now, we have agreed that all the e-hailing services/cars must do their drop off at the gates of the malls but when they are carrying elderly people or people with disabilities, they can then drop them off inside the mall and leave,” said Kenny Kunene, a member of the mayoral committee.
Read MoreSudan’s war is crippling its budding tech ecosystem
Sudan’s tech ecosystem is caught in a crossfire between militants. But operators are daring to hope. The streets of Khartoum, Sudan’s capital, now feel like a graveyard. Made quieter by the thousands of people escaping its latest war, which broke out on April 15, Sudan’s commercial centre is no more the hotbed for innovation, technology, and a forceful tech ecosystem. Today, Khartoum is an arena for shellings that have forced several tech operators out of their offices. Tech operators are fleeing to other regions and neighbouring countries while holding out hope for the country’s future. Even banks have joined startups in their flight, leaving thousands of individuals and businesses stranded. “We abandoned everything in Khartoum, all of our inventory, everything,” says Awab Habiballa, CEO of Tolivery, a fleet management SaaS startup that operates in the war-torn capital city. Habiballa spoke to me from Dubai, where he now lives with his family. He recounts that Tolivery’s business operations came to a standstill as the war escalated. “It was especially bad for us because a lot of our products are hardware components, and we had to abandon them.” As part of its services, Tolivery provides telematic devices for startups and enterprises to track and manage their mobility operations. The startup will now operate from Port Sudan, a tranquil city in the eastern part of the country. Tolivery’s business troubles are compounded by the failing connectivity infrastructure in Sudan. Telecom operators struggle with electricity and maintenance while fintechs that process payments for internet-dependent services are unreliable. “We completely shut down in the first month,” says Ahmed Elmurtada, managing partner at 249Startups, Sudan’s leading accelerator for idea to early-stage companies. “The goal at that point was to be alive and safe. So the majority of our team found ways to leave Khartoum and Sudan. Now, we are distributed across neighbouring countries like Ethiopia, Egypt, and UAE,” he said. Elmurtada, whose accelerator has incubated more than 150 startups in Sudan, expressed painfully how many of these startups have lost almost all they’ve struggled to build within the past few years. “Inventory gone, offices deserted, digital infrastructure down, and bank accounts inoperative. That’s the story of Sudan’s tech ecosystem.” A familiar quip in the tech world is: “Software will eat up the world.” Sudan’s story proves that war is the more ravenous carnivore. Troubled, but not destroyed Sudan is the third largest country in Africa by land size with a population of over 45 million people—68% of which are under the age of 30. Judging from this only, one might conclude Sudan is a prosperous pro-technology market—which, of course, it should have been, if not for the consistent civil wars and militant uprisings that have bedevilled the country since its independence in 1956. Since independence from Britain, Sudan has witnessed two civil wars and over 15 military coups, including the 1989 coup that ushered in Omar al-Bashir, an extremist that ruled the country for 30 years, before he was forced to resign in 2019. After this, the move to transition to civilian rule was busted by another coup by the Sudanese Armed Forces (SAF) leader Abdel Fattah al-Burhan and the paramilitary Rapid Support Forces (RSF) leader Mohamed Hamdan “Hemedti” Dagalo. The duo are now at the centre of Sudan’s present conflict, raging at each other for control of the country and recording thousands of casualties. Al-Bashir’s time as prime minister attracted punitive measures from the US. The Bill Clinton-led administration unleashed sanctions that prohibited US investments in Sudan. And the UN security council followed suit. These sanctions would later starve the tech ecosystem of capital and blacklist Sudanese entrepreneurs from global investment opportunities. In 2020, the sanctions were lifted, marking what seemed to be a rebirth for the Sudanese business ecosystem. Funds began to flow in, with alsoug’s $5 million and Bloom’s $6.5 million among the notable ones. Accelerators like 249Startups and Impact Hub were also actively churning out cohorts. Business in Sudan was beginning to look attractive to investors—until the current war erupted in April. As at the end of May, the war has killed about 1,800 civilians and injured over 5,000 others. “We’re sort of used to the ups and downs of the Sudanese market,” Habiballa explains. “Before the war, we had to deal with a government that showed almost zero support for our businesses. Building in such an environment makes you tough. That’s why founders in the region somehow manage to push things forward. And this war will not be an exception.” Building from the diaspora Founders who have fled Sudan may have lost their startups, but not the spirit that forged those businesses. For many of them, the countries they are fleeing to will provide not only safety but also market opportunities for their ideas. Elmurtada told TechCabal that 249 Startups have continued to connect its portfolio companies to tech networks in countries like the UAE and Egypt, where many founders have now moved to. “In our five years of operating in Sudan, we built connections with tech ecosystems across these countries, including accelerators like Flat6labs and Plug and Play. Now, we’re pushing for support for Sudanese entrepreneurs. I believe that Sudanese entrepreneurs will flourish in these new markets if given the opportunity. They have made things work in one of the toughest economies globally. Think of what could happen in a more stable market,” he said. For Elmurtada, the sentiment is that these founders will build stable businesses in these countries that could eventually expand into Sudan. Having a stable Sudan-in-diaspora tech community does a lot of good for the country. It opens accessibility to funding for these entrepreneurs, creating a pathway for funding to Sudan as the diaspora ecosystem matures. For context, the African diaspora contributes over $95 billion yearly to the African economy. Awab Habiballa, whose startup has struggled to raise institutional funding, told TechCabal that raising money for Sudanese startups mostly involved registering the business in other countries to reassure investors. “It will naturally be hard for
Read MoreUnity Bank’s Q1 2023 results raise questions about the bank’s financial health
On paper, everything seems well at Unity Bank, but a worrying note from independent auditors, KPMG, on the financial health of Unity Bank should bother investors. A note from independent auditors, KPMG, has raised questions over the financial health of Nigeria’s Unity Bank. These questions became pertinent after the lender’s total liabilities exceeded its total assets by ₦274.9 billion for the full-year ended December 31, 2022. Per its financial statements, the bank recorded total assets of ₦510 billion in full-year 2022, compared to ₦538 billion in 2021. On the part of its total liabilities, the bank recorded ₦785 billion in 2022, as against ₦815 billion recorded in 2021. Analysts from KPMG wrote a note regarding this situation in its books, highlighted it as a “growing concern.” “We draw attention to Note 35 of the financial statements, which indicates that the bank made a profit of ₦941.4million for the year ended 31 December 2022. As at same date, the bank’s total liabilities exceeded its total assets by ₦274.9billion and the bank did not meet the required minimum Capital Adequacy Ratio (CAR) of 10% and the minimum capital requirement of ₦25.00 billion for a national bank as required by the Central Bank of Nigeria (CBN). As stated in Note 35, these events or conditions, along with other matters as set forth in Note 35, indicate that a material uncertainty exists that may cast significant doubt about the bank’s ability to continue as a going concern,” the note in the financials read. What Unity Bank’s 2022 financials say For the year 2022, the bank’s interest income grew by 13% to ₦48.9 billion in 2022 from ₦43.1 billion in 2021 but its profit after tax (PAT) fell by 70% to ₦941.3 million in 2022. Directors of the bank admitted in their notes to the financial statements that the bank is nearing a recapitalisation and there is uncertainty regarding the process. Nonetheless, they said that they have reached an advanced stage with both local and multinational investors in the fund mobilisation for the bank. “The directors are confident that they would be able to recapitalise the bank upon the upturn of economic activities within the next one year. Based on this, the directors have a reasonable expectation that the bank will continue in operational existence for the foreseeable future and as such realise its assets and settle its liabilities in the normal course of business,” the notes to its 2022 financial statement read. Managing Director, Unity Bank Plc, Mrs Tomi Somefun in a quote attributed to her said the bank is trying to build momentum while reflecting key performance indicators despite economic headwinds and volatilities that characterized the operating environment in the 2022 financial year. “There are highs and lows as we look at the gross earnings, with 13.7% growth, increase in liquid assets by 7.5% and deposits recording moderate growth of 1.6%, while maintaining steady growth in profitability,” the statement said. More worries in Q1 2023 results Despite those unimpressive 2022 results, the bank managed to make a comeback in its first quarter 2023 results. It recorded ₦1.04 billion profit in the first quarter of 2023, compared to ₦869.2 million in the corresponding period of 2022. Its gross income went up by 17% to ₦15.9 billion in Q1 2023. Despite these improvements, its total liabilities still surpass its total assets in Q1 2023, sustaining the questions over the bank’s financial health. The bank recorded total assets of ₦440 billion in Q1 2023, as against ₦510 billion in the corresponding period of 2022. Also, it recorded ₦580 billion as total liabilities in the first quarter of 2023, as compared to ₦785 billion recorded in Q1 2022. However, it forecast a profit after tax of ₦230 million for the second quarter of 2023 and gross earnings of ₦23.4 billion for the same period. In 2020, TechCabal reported that Unity Bank alongside TeamApt and Access Bank were victims of a data hack, which they all refused to admit.
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👨🏿🚀TechCabal Daily – More telecoms for Nigeria
Lire en français Read this email in French. 8 JUNE, 2023 IN PARTNERSHIP WITH Happy pre-Friday In more AI news, Microsoft has launched a new AI aid for Windows 11 called Windows Copilot. Copilot is a personal assistant that will empower its users by enabling swift action, customisable settings, and seamless interaction with preferred applications. If you’re on Windows 11, you should be able to test it out. In today’s edition NCC grants 25 firms telecom licences Nigerian banks to pay less for transfer Safaricom’s smart water Samsung is starting e-waste collection in Kenya The World Wide Web3 Event: The Moonshot Conference Opportunities NCC GRANTS 25 FIRMS TELECOM LICENCES The Nigerians Communications Commission (NCC) has granted licences to 25 companies to offer telecom services under the Mobile Virtual Network Operators (MVNO) framework. What is an MVNO? A Mobile Virtual Network Operator is a company that provides wireless communication services without owning the underlying network infrastructure used to serve its customers. The newly licensed companies will offer services similar to other telecommunications providers like MTN, 9mobile, Airtel, and Globacom, despite not having their own infrastructure. Instead, they will use the existing infrastructure of Mobile Network Operators (MNOs) in the country. So far, seven companies have been licensed under tier 2 and 3, three companies under tier 4, and eight companies under tier 5. See the names of all companies here. Cost of each licence: The MNVO licence, which is a 5-tier classification, has different services required of players in each tier. Per The Guardian Nigeria, all 25 companies acquired licences in tier 2 to 5, and none obtained a tier 1 licence. The tier 5 licence costs ₦500 million ($1.1 million), tier 4 costs ₦200 million ($432,900). Both the tier 3 and tier 4 licences cost ₦130 million ($ 281,385) and ₦60 million ($131,063) respectively, while the tier 1 licence cost ₦35 million($75,757). The NCC has collected licensing fees totalling around ₦5.9 billion ($12.7 million) by granting MVNO licences to these 25 companies. MONIEPOINT RANKED 2ND FASTEST-GROWING AFRICAN COMPANY Moniepoint is Africa’s second-fastest growing company, as shown in FTs latest report. We also processed 1 billion transactions worth $43 billion in Q1 alone. Read all about it here. This is partner content. NIGERIAN BANKS TO PAY LESS FOR TRANSFERS Nigerian banks asked and they have received. Upon the request of commercial banks, Nigeria’s Inter-Bank Settlement System (NIBSS) has reduced the cost of transactions from ₦5 ($0.011) to ₦3.75 ($0.0081). The new prices will take effect on July 1, 2023, but insiders and experts say that this doesn’t mean that banks will be charging their customers less transaction fees. Why won’t they? Every single kobo matters and banks know it all too well. Fees and commissions play a major role in their non-interest income, making them one of the biggest contributors. Just take a look at the numbers from 2022: Access Bank raked in ₦145.7 billion ($315.5 million), Zenith Bank secured ₦132.8 billion ($287 million), Ecobank pocketed ₦200.9 billion ($434.8 million), and UBA snagged ₦128.2 billion ($277.4 million), all from those charges and commissions. Let’s face it, these banks won’t give up a single kobo unless someone really means business. And by that, we mean the big boss: the Central Bank of Nigeria (CBN). Has that happened before? Yes. In December 2019, the CBN made banks reduce their fees to increase access to banking services to more Nigerians. The banks that hesitated were fined. If the CBN makes the same move again they may have to comply. MORE FROM TECHCABAL One year after its launch, MTN’s MoMo still needs to reach more Nigerians. Entering Tech #33: How Data Community Africa helps data professionals. Twiga confirms that it laid off its sales team in 2022 as it adjusts its commercial model. SAFARICOM INTRODUCES SMART WATER SYSTEM IN CAMPUSES Kenyan telecom Safaricom and the Kenya Water Institute (KEWI) are partnering to introduce a smart water system that could make a real splash at the Nairobi and Kitui campuses. Side bar: Smart water management uses real-time data to detect loss & leakage, ensure accurate billing, enhance revenue collection, improve operational efficiency, and as a result save costs. It isn’t just about the H2O; Per TechtrendsKe, the smart water system will be used to facilitate, create, and run a practical smart water management curriculum for students at the institutions. Through this partnership, Safaricom seeks to paddle Kenya towards a future where clean water and sustainable management flow freely. This aligns perfectly with Sustainable Development Goal 6, which seeks to ensure the availability and sustainable management of clean water and sanitation for all. SAMSUNG LAUNCHES E-WASTE PROGRAMME IN NAIROBI Samsung Electronics East Africa has partnered with home appliances store, Housewife’s Paradise, to collect e-waste for recycling in Kenya. As part of a joint effort on environmental conservation, the e-waste collection will commence in Nairobi, and then expand nationwide by the end of the year. The process: Housewife’s Paradise will collect Samsung brand-only e-waste from customers at their desired time and date. Subsequently, the collected waste will be transported to the Waste Electrical and Electronic Equipment Centre (WEEE), Kenya’s official Samsung recycling partner, and disposed of according to established global standards. According to the head of division at Samsung, Ronald Mitei, Samsung has been actively committed to a responsible e-waste management system and they aim to expand and enhance their efforts to reduce any adverse environmental effects caused by their products. “We have been dedicated to responsible e-waste management for the last few years and we now want to scale it up to ensure that we minimise any negative environmental impact of our products. This includes taking responsibility for the end-of-life phase of our products to prevent environmental harm. Our e-waste programme and recycling programme are an important part of this commitment,” he said. This programme comes as the world celebrates United Nations World Environment Day, and it aims to raise awareness and encourage action to protect the environment by collecting e-waste. EXPERIENCE VIVA TECHNOLOGY Book your
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Sweden’s Medius to acquire Tunisian-born Expensya in a 9-figure deal
Medius, the Swedish business expense management company, plans to acquire Tunisian-born but Paris-headquartered Expensya for an undisclosed sum. A source with knowledge of the deal says Medius could pay several hundred million for Expensya. A press statement seen by TechCabal describes the acquisition as “ one of the largest in the MENA region.” Expensya was founded in 2014 by Karim Jouini (CEO) and Jihed Othmani (CTO) to provide automated expense management tools for European businesses. Expensya’s software allows businesses to offer autonomous spending (within specified rules and limits) freeing up time and streamlining employee expensing. Integrations with popular ERP applications like SAP, Oracle and Microsoft Dynamics allow financial comptrollers to maintain control and visibility across all business spending and simplify staff reimbursement. Initially built in Tunis, Expensya is headquartered in Paris but still maintains the bulk of its back office operation in Africa. Per TechCabal reporting last year, only 50 of 160 employees were based outside Africa with the rest working out from an office in the Tunisian capital. Expensya cofounders, Karim Jouini (CEO) and Jihed Othmani (CTO). Photo source: JeuneAfrique | © Expensya Before this acquisition, Expensya had raised a total of $25.6 million, with the latest being a $20 million Series B that was announced in April 2021. Press statements announcing the pending acquisition say Expensya more than doubled its recurring revenue in two years (from 2021) and grew its customer base to 6000 businesses (700,000 active individual users) spread across 100 countries. Expensya now employs more than 200 employees, mainly based in Tunisia, France, and Germany. Read also: How this Tunisian startup won big in Europe “Mid-size organizations and their CFOs are clearly looking for one common platform to efficiently manage all their spend,” said Karim Jouini, CEO of Expensya. “By combining our employee spend management solution and payment cards, with Medius’s AP automation platform, we now cover the whole indirect spend of companies.” Founded in 2001, Medius is a cloud-based spend management technology provider based in Stockholm, the Swedish capital. In 2017, California-based private equity firm Marlin Equity Partners acquired Medius for an undisclosed sum. In March, Marlin sold a minority stake in Medius to Advent International, another private equity firm, for an undisclosed sum. Industry watchers reported that the minority single-asset stake sale was close to $500 million after Marlin revalued Medius downwards, suggesting that Medius retained a value substantially above the billion-dollar mark. “Expensya has developed a leading employee spend management solution in Europe,” Jim Lucier, Medius CEO said in a published press statement “Its founders, Karim and Jihed, and its leadership team share our ambition to transform the spend management category,” he added. Medius is especially keen to leverage Expensya’s technology to boost its spend management automation platform for travel businesses. According to Kevin Permenter, research director for Financial Applications at International Data Corporation, “Medius’s planned acquisition of Expensya will help financial leaders get a holistic view of their organization’s travel performance and financial position by enabling data from travel and expense activities to flow between the relevant finance functions.” Medius has sought to grow its business suite by acquiring emerging firms operating in the same or, adjacent space. In 2019 it acquired Wax Digital, a UK Procurement payment provider. And in 2022, it bought OnPay Solutions, a US-based Accounts Payable and cloud-based invoice processing company. The acquisition, when completed, will be the second 9-figure acquisition of a startup of Tunisian origin. In January this year, Oxford University spinoff, BioNTech, acquired InstaDeep, another Tunisian-born startup for $680 million. The deal represented the largest startup exit to date for an African-born startup.
Read MoreWith its share price down 55%, Tingo Group will address Hinderburg research allegations today
Nigerian fintech, Tingo Group, says it will make a formal statement concerning the allegations by Hindenburg today and appoint a legal firm to manage the situation. Tingo Group, a NASDAQ-listed agri-fintech company accused of being an “exceptionally obvious scam” by the Hindenburg research group, has said it will publicly address such allegations today. The group shared this in its 2023 special meeting of shareholders today. The company’s response is critical, given that its share price dipped by -55% on NASDAQ after Hindenburg’s lengthy expose. TechCabal listened in on Tingo’s shareholder meeting, which lasted only eight minutes. Tingo’s Group senior chief financial officer Ben Trippier was on the call. However, it was unclear if Dozy Mmobuosi, the Group’s Founder and CEO, was on the call. Nevertheless, Tingo said it would “make a formal statement concerning the allegations by Hindenburg later today” but didn’t disclose any specific time. Tingo told shareholders on the call, “Most of you are aware of certain allegations which were published yesterday regarding the company. We intend to make a formal statement concerning certain of these claims later today.” Tingo further said it will appoint a “well-known International legal firm” to help address the current claims. “In addition, as is required for good corporate governance, we are in the process of appointing a well-known international legal firm as special legal counsel to assist the board in examining these allegations and producing a report to address the same,” the company concluded. Another issue discussed during the meeting was a proposal to increase the number of authorized shares and common stock from 425 million to 750 million. The company’s board approved the proposal. *This is a developing story
Read MoreTwiga confirms that it laid off its sales team in 2022 as it adjusts its commercial model
Twiga shifted its sales model after restructuring operations that eliminated internal sales teams. It has the right to terminate working relationships with underperforming independent contracts. Twiga Foods, a business-to-business (B2B) platform that connects farmers and food vendors, has confirmed that it no longer has an in-house sales team after a cost-cutting move it implemented last year. The cost-cutting move was a round of layoffs in October 2022 that affected 211 people, and the company’s CEO Peter Njonjo has clarified that contrary to some claims, there have been no new in-house workforce cuts. However, he shared that Twiga has changed its sales model and now works with several independent agents instead of full-time salespeople. In an email to TechCabal, Njonjo said, “We made the changes to our commercial team last year in October. We wanted to convert the role of a salesperson from that of an employee to a free agent. We made redundant the role of a Trade Development Representative and thus impacted 211 people. We paid all dues as per the Kenyan Employment Act. Other big companies followed suit in Kenya.” The layoffs mean that Twiga no longer has a sales department staffed with full-timers. Njonjo defended the firings as converting the salespeople to ‘free agents.’ “We no longer have dedicated sales agents in Twiga,” said Njonjo. Twiga’s new agent model According to Njonjo, Twiga stopped working with several sales agents following a performance evaluation. “Under the new agent model we rolled out last year, we are always reviewing sub-optimal sales territories, and it has been quite an iterative process. The decision to merge sales clusters drove the reduction in the number of agents, mainly driven by the viability of those clusters (driven by performance over time). The agents are independent actors, where in most cases they don’t work exclusively for the company, so this was based on the viability of those clusters,” added the CEO. Njonjo’s Twiga did not disclose the exact number of affected sales agents. One of the independent agents told TechCabal that Twiga assigns areas they should cover. The source also confirmed that Twiga does not restrict agents in terms of companies they work with. Still, they have to meet set goals to continue contracting for the company. Yesterday, Twiga let go about 60% of their sales team of 450 in Nairobi, citing harsh business environment.We always tout innovation as a watertight solution. But FCMG distribution has been showing players fire for a while. Seems it doesn’t matter if you’re traditional or not. — Spry Voice (@SpryVoice) June 6, 2023 Twiga assesses the agents monthly. If they do not serve their clients satisfactorily, they are replaced by a waiting list of new applicants. Njonjo says a waiting list of 2000 people is ready to be onboarded as sales agents. This is likely why Twiga is stringent in handling agents because if they cannot perform, a new set of agents would replace them. This business model has perhaps led to an online discussion faulting Twiga for firings. While that might be the case, Twiga has not laid off any permanent employees. Adopting the model makes it clear that underperforming independent agents will continue to be laid off. Last week, Twiga transferred its rights at the Galana-Kulalu Scheme to Selu Limited. Selu Limited has been set up as a specialised entity to invest in the irrigation project. The aim is to develop 20,000 acres of land for maize production, utilising innovative and sustainable farming methods. Towards the end of 2021, Twiga Foods secured $50 million in new funding to support its East and West Africa expansion efforts. The investment was raised by its existing investors, including the International Finance Corporation, TLcom Capital, Creadev, Juven, and DOB Equity. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreNIBSS cuts instant transfer fees, but banks will not lower customer transaction fees
Nigerian Inter-Bank Settlement System (NIBSS), Nigeria’s largest payment infrastructure, has reduced the processing fee for transactions on its platform. How does that affect you? According to documents seen by TechCabal, NIBSS has reduced the processing fee for transactions on NIBSS Instant Payment (NIP). The new ₦3.75 pricing for instant transfers—down from ₦5—will take effect on July 1, 2023. An anonymous source at NIBSS told TechCabal that the reduction resulted from commercial banks asking for a reduction in the cost of transactions. The source added that the reduction would not affect the transaction fees banks charge their customers. It’s a position that financial services experts agree with. Adedeji Olowe, the founder of Lendsqr, told TechCabal, “[The] truth is, the impact would be nothing except the Central Bank compels banks to reduce pricing.” Olowe’s comments ring true, as only the CBN can instruct banks to reduce their transaction fees. Currently, banks charge a ₦10 fee for transactions under ₦5,000, ₦26 for transactions between ₦5,000 and ₦50,000, and ₦50 for transactions above ₦50,000. Would the NIBSS reduction affect transfer fees for customers? Abubakar Idris, a business journalist, told TechCabal that for banks and fintechs, “every kobo counts”. “A reduction in NIBSS fees won’t necessarily trigger any decrease in customers’ payment fees,” he said. Idris added that for fintechs, the cost of serving customers is not decreasing. “Server fees are in dollars, compensation for talent has become competitive, and rising inflation and devaluation mean businesses are already struggling to stay afloat”, he said. Additionally, transaction fees are a critical revenue source for Nigerian banks. In 2022, Access Bank, Zenith Bank, Ecobank, and UBA made ₦145.7 billion, ₦132.8 billion, ₦200.9 billion, ₦128.2 billion, respectively, from fees and commissions. These figures made fees and commissions the largest or second-largest contributors to the banks’ non-interest income. It explains why the banks hope that the CBN doesn’t ask them to reduce their fees. In December 2019, the CBN, in a move to offer stability and improve financial inclusion, compelled banks to reduce their fees. Some banks hesitated due to concerns over their profit margins. Their hesitance was met with fines. But Charles Odogwu, the growth head for NowNow, believes that it’s not a binary conversation. He says that if banks lower transaction fees, it can “stimulate increased transaction volume”. He added that this could translate into more revenue opportunities for banks, “especially if they have a significant market share in electronic payment services”. On the flip side, he said that reducing transaction fees may impact banks’ profit margins. “If the price reduction is significant, banks may experience a decline in transaction fee revenue, which could affect their overall profitability”, Odogwu said.
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🚀Entering Tech #33: How Data Community Africa helps data professionals
From a festival to a community. 07 || June || 2023 View in Browser Brought to you by Issue #33 Communities: Data Community Africa Share this newsletter Greetings ET people If you’re looking to enter or go further in the gripping world of data-driven wonders, where numbers dance and insights sparkle, then this edition of Entering Tech is for you. A few weeks ago, we began the discussion on communities in tech and how the right ones can help you thrive in your chosen field. Today, we’re talking data! If you’re already on your journey in this field, or looking to get in; fear not; you don’t have to go it alone. Say hello to Data Community Africa, the space for connecting with like-minded souls who share your passion for turning raw data into gold. In this community, you’ll be able to learn more and grow through learning programmes, certified courses, job and internship opportunities and the good old power of community. Happy reading, and may the data gods be ever in your favour! by Pamela Tetteh and Timi Odueso. Tech trivia This week’s trivia is inspired by Apple’s new $3,500 AR goggles. What’s the difference between virtual reality, augmented reality and mixed reality? What is Data Community Africa? A few weeks ago, in a now-deleted tweet, I mentioned I was looking for an exceptional data analyst to feature on the Entering Tech Shorts. Almost immediately, I got two recommendations from Tina Okonkwo—a data analyst we featured in Entering Tech #10—and another acquaintance. Both Tina and the acquaintance had recommended the same people: David Abu and Olanrewaju Oyinbooke. Within minutes, I had not only the Twitter handles of these two guys, but their email addresses and phone numbers as well. When I asked how they both had these contacts, their responses were similar: David and Ola are popular in the data community because they’re helping newbies learn about data. This story bears semblance to how Data Community Africa started: a tweet, and people looking to make change. In March 2022, David Abu tweeted, “We want to run a data conference in Nigeria that includes all data roles in the workplace. It will be called DATAFEST2022. The goal is to understand different aspects of data and how all data life cycles have evolved over time.” With Gift Ojeabulu, a data scientist with over 10 years of experience, and Olanrewaju Oyinbooke, Abu hosted the first-ever event showcasing all data roles in the African space. But what started off as DataFestAfrica, an event attended by over 4,000 people, has now evolved into a community of like-minded individuals who are relentlessly pursuing three goals: community, job opportunities and scaling—so people in data can grow in their career journeys. And that’s how Data Community Africa started. How Data Community Africa works Data analysts, scientists, and everyone in data 2,000 Nil. Absolutely free Discord If you’re wondering what the benefits of joining Data Community Africa are, here are a few: A. Monthly learning programme: Every month, the community hosts a series of online workshops and tutorials designed to help data professionals in Africa learn new skills and stay up-to-date on the latest trends in data science and machine learning. The programme is open to all levels of experience, from beginners to experienced professionals. In the past, the programmes have hosted tutors like Bitergia’s Ruth Ikegah. B. Job Opportunities: Data Community Africa has partnered with a number of companies to offer job opportunities for data professionals. For example, it recently partnered with the African Development Bank to offer a data fellowship programme for young data professionals to develop the skills they need to work in the financial sector. It’s also partnered with Propel and Deep Brown Consulting to help data professionals find jobs. Since the community kicked off less than 6 months ago, at least eight community members have found jobs! C. Skill development: So we’ve mentioned the monthly learning programme at Data Community Africa. But there are even more opportunities where newbies can gain data skills. The community offers a variety of skill development opportunities for data professionals, including online courses, workshops, and meetups. For example, it has partnered with DataCamp—a global data learning platform to offer online courses and certification programmes that data professionals can complete to demonstrate their skills and knowledge. D. Events: Data Community Africa started from an event, so it stands that the community will keep hosting physical meet-ups and other events for its members. While we have it on good account that DataFestAfrica 2023 is coming soon , members have also participated in datathons where data professionals can show off their skills and win prizes of up to ₦400,000 ($900). E. Community: Finally, there’s the first reason Gift and David founded Data Community Africa in the first place: to bring data professionals together in a space where they can grow. And the Community has a lot of that. On Discord, DCA has over 2,000 members while its Twitter page boasts of 17.3k engaged followers. What people say about Data Community Africa Speaking of community, here are a few rockstars who you will meet when you join Data Community Africa and what they’re saying: If you’re a data professional or you’re looking to enter tech through data, the good news is that Data Community Africa is free and ready to help. All you have to do is click a button. Join Data Community Africa on Discord The Entering Tech Shorts Speaking of data, what do data analysts do and how can you become one? In this one-minute video, senior cloud advocate at Microsoft, Olanrewaju Oyinbooke, explains what data analysts do and if Professor X from the X-men really is one. Watch the 1-minute YouTube Short here! Ask a techie Q. What are the career paths in technical writing? There’s a lot you can do with technical writing. Other than just documenting processes for tech and product teams, here are a couple of other career paths technical writing fits in. Technical writers
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