The leading African tech moves from May 2023
1. Funding: East Africa leads the way In May 2023, African startups raised $621.8 million from 34 fully disclosed* raises. Compared to May 2022 where African startups raised $437.1 million, this shows a 42% year-on-year increase. The number is also a significant increase from April 2023 where the total amount raised was $129.8 million, a whopping 379% increase! Per region, East African startups led the way with the majority of the funding—about $414.7 million representing 64.6% of the total funding. These figures are led by fintech M-Kopa’s $255 million raise, and Sun King’s recent $130 million raise. Image source: Timi Odueso/TechCabal Per sector, the top from May 2023 are fintech, cleantech and mobility/logistics. Fintech leads with $442 million (68.9%), cleantech with $130 million (20.3%), and mobility/logistics with $39 million (6.1%). Image source: Timi Odueso/TechCabal The top 5 disclosed deals of the month are: Kenyan asset financing startup M-Kopa’s combined $255 million debt-and-equity financing round. Kenyan cleantech SunKing’s $130 million securisation deal. South African digital bank TymeBank’s $77.8 million pre-Series C round. South African fintech E4’s $52 million acquisition led by Infinite Partners. Nigerian Logistics startup Sabi’s $38 million Series B funding. *Note: This data is inclusive only of funding deals announced in May 2023. Raises are often announced later than when the deals are actually made. This data also excludes estimated grants from accelerators like Techstars or Y Combinator. 2. Big deals: Ghana secures $3 billion from IMF, MTN gets $320 million Topping the big non-startup deals of May 2023, Ghana secured a $3 billion bailout from the International Monetary Fund (IMF). The approved funding will serve to replenish Ghana’s foreign-exchange reserves, which have seen a significant decline of nearly 50% since their peak in August 2021. Meanwhile, MTN is sticking to its “everywhere you go” mantra with a $320 million deal. The deal, which comes as part of a partnership with development fund Africa50, will see the creation of a fibre optic network between 10 African countries by 2025. 3. Regulations: Nigeria’s new ICT bill resurfaces amidst pushback Amendments to the regulatory act of Nigeria’s ICT agency, NITDA, made a stir in May. Last month, the Senate Committee on ICT and Cybersecurity also recommended that the Senate pass the new National Information Technology Development Agency (NITDA) Act. The recommendation comes as the bill faces intense opposition from ICT leaders who have labelled the bill a “bundle of chaos”. Nigerian telecoms also wrote to the National Assembly, requesting exclusion from the bill that could bring double taxation and regulation to their doorsteps. 4. Fintech: Kenyan government launches unified QR code system In East Africa, May saw the Kenyan government implanting financial interoperability with the launch of a unified QR code system. The Kenya Quick Response Code Standard 2023, or the “KE-QR Code Standard 2023”, will offer all payment service providers regulated by the Central Bank of Kenya (CBK) the ability to process payments using QR codes. 5. Crypto: Zimbabwe launches digital currency, sells $39 million worth Zimbabwe kicked off its digital currency early in May. Post-launch, the country faced criticism from the International Monetary Fund (IMF) who cautioned that the gold-backed currency would not solve its fiat currency devaluation problems, and could deplete the country’s gold reserves. Despite this, the Reserve Bank of Zimbabwe (RSV) reportedly sold 14 billion Zimbabwean dollars’ worth of gold-backed digital tokens—worth around $39 million. 6. Acquisitions: Safaricom buys M-Pesa Holdings for $1 In the deal of the month, Vodafone sold the trust company M-Pesa Holding Company Limited (MPHCL) to Safaricom for $1. The holding company presently has €1.2 billion ($1.3 billion) in customer funds which Safaricom could invest in short-term securities. Safaricom will need the money after acquiring a $150 million licence to operate mobile money services in Ethiopia. 7. Regulations: Nigeria suspends licences of 179 microfinance banks While April may have seen Nigeria approving licences for loan apps to operate in the country, May meets the country revoking licences in other sectors. Last month, the Central Bank of Nigeria (CBN) revoked the licences of 179 microfinance banks (MFBs), four primary mortgage banks, and three finance companies. The licences were revoked because the institutions didn’t comply with regulatory requirements or carried out unauthorised businesses. Part of the affected MFBs included Eyowo, a Nigerian digital bank whose customers are finding creative ways to withdraw money after the bank suspended all withdrawals pending its licence re-approval. 8. Africa + Big Tech: Kenya rules against Sama again, Bolt opens engagement centre in Nairobi Continuing the trend from previous months where Kenyan courts have ruled that they have the jurisdiction to hear cases against big tech companies like Meta, Kenya once again—in May—held the tech behemoth accountable. Last month, Kenya’s Employment and Labour Relations Court ordered the content moderation service Sama to pay its employees. This comes after Sama, Meta’s outsourcing partner, refused to pay its content moderators their salaries due to the moderators’ court case against them. Meanwhile, in contrast, could Bolt be finally taking its Kenyan drivers’ complaints seriously with the launch of its Nairobi engagement centre? 9. Telecom: Mozambique joins the 5G gang In May, East Africa’s Mozambique became the newest African country to launch 5G. Early in the month, telecom Vodacom announced the launch at selected sites in Maputo, Matola; the central area of Nampula; downtown Nacala, Munhava, Maquinino, and Chipanga neighbourhoods; Beira; and Tete. So far, at least a dozen African countries have launched 5G commercially while many more are reportedly running trials across their respective countries. 10. Economy: IMF says Nigeria’s e-naira is failing Contrary to claims by the Central Bank of Nigeria’s (CBN) governor, Nigeria’s digital currency might be a bust. In May, the International Monetary Fund (IMF) revealed that 98.5% of e-naira 14 million wallets have not been used even once, two years after its launch. According to the IMF, the total number of retail e-naira wallets amounted to about 860,000, which is equivalent to just 0.8% of Nigeria’s active bank accounts.
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Next Wave: Can Africa’s startup ecosystem survive its data gap?
Cet article est aussi disponible en français <!– In partnership with –> 4 June 2023 Can Africa’s startup ecosystem survive its data gap? Photo by Clauddio Scharwz on Unsplash This is a guest contribution from Ayomide Agbaje, Analyst at TechCabal Insights. By now, it is trite to say that the African startup ecosystem has become a hotbed of innovation, entrepreneurial activity and digital transformation, showcasing remarkable growth and resilience in recent years. With its most recent celebration by the global technology community at GITEX Africa 2023 this past week in Marrakech, Morocco, the ecosystem has witnessed a 40% increase in the number of tech startups and investments rising from $1.3 billion in 2020 to $4.85 billion in 2022—indicating significant growth and investor confidence. However, a critical challenge threatens to undermine this progress: the data gap. This edition of The Next Wave confronts the data gap head-on, with a closer look at its implications and solutions. In April 2023, I engaged with a tweet by Lois Adeniji, a startup founder based in Nigeria, lamenting the lack of data in the African startup ecosystem and the need for access to market research reports. “This thing is so frustrating! You literally have to do a fresh survey for every piece of information you need,” a Twitter user commented. This frustration resonated with many, including myself. As someone analysing African tech with data stories at the continent’s premier digital economy consultancy, TechCabal Insights, I understand firsthand the difficulties the ecosystem faces due to the scarcity of up-to-date, timely, and valuable data insights. Let’s face it: most available market data in Africa, often collected by state agencies, are either outdated or lack the necessary granularity for accurate decision-making and specific answers. More than anything, this serves as a stark reminder of the urgency to bridge the data gap on the continent. Impact on Africa’s ecosystem’s fundraising drive Unfortunately, this data gap isn’t just an inconvenience—it affects fundraising as well. Regardless of the funding trackers you consult, the data shows that funding to African startups has taken a significant hit—with the ecosystem, for instance, experiencing its largest year-on-year quarterly drop in Q3 and Q4 2022 at 52% and -63%, respectively. While other factors amid the global funding meltdown may have contributed, the lack of data that limits investors’ knowledge to fully evaluate opportunities in the ecosystem is also not far-fetched. Investors rely on data to make informed decisions, and the absence of reliable and comprehensive data on market potential and growth prospects across the African tech startup ecosystem leaves them cautious and hesitant. This limited knowledge translates into reduced investments and slower dealmaking, hindering the growth of early-stage companies. Startup funding to Africa is on the decline | Chart by Ayomide Agbaje, TC Insights The latest State of Tech in Africa report (Q1 2023) by TechCabal Insights revealed a trend of stricter due diligence accompanying the deployment of VC funds by tech investors, resulting in a sharp slowdown in dealmaking across the continent. In March 2023, African startups secured only $66 million in capital, a new low since at least August 2020, according to funding data from the Big Deal. While multiple factors may contribute to this decline, data gaps can significantly reduce due diligence. Investors face difficulties accessing accurate financial information, historical performance data, and customer insights. The lack of verifiable data and metrics heightens risk perception and prolongs due diligence periods, as investors, particularly those unfamiliar with the African region, seek alternative means to fill information gaps. According to a survey by Partech Africa, 80% of African startups struggle to access early-stage funding. Africa’s data gap creates an additional barrier, making it even more challenging for early-stage startups to secure the necessary funding for growth, underscoring the urgency for data-driven insights to attract capital. Partner Message Thank you for being part of Africa’s largest tech event, the innaugural GITEX Africa in Marrakech, Morocco! Keep in touch Intelligence will help African startups To address this challenge, African intelligence firms with local expertise need to rise up to the occasion by creating high-valued data products about African markets and the tech ecosystem. By directly collecting data from consumers and providing market insights backed by real-time information on Africa, these firms can bridge the data gap. Armed with unit-level data on consumer behaviour, product preferences, purchase frequency and geographic locations, startup businesses can include adequate information in their data rooms for fundraising and avoid making strategic decisions blindly. Such robust data will also empower African startups to strategically expand to favourable demographics, identify growing markets, scale customer acquisition and enhance competitiveness in line with disruptive trends shaping the continent. Also, data-driven rankings, like the recent Financial Times/Statista ranking data of Africa’s fastest-growing companies, is a positive step towards bridging the data gap on the continent. These rankings offer much-needed visibility to the African startup scene, assisting investors, policymakers, and industry stakeholders in identifying sectors with growth potential and focusing their efforts to support the continent’s digital economic growth. Partner Message In 5 minutes, you can get your health insurance, motor insurance, and life insurance on the P2Vest app. Available on Google Play & App Store. Get InsuranceParasol True progress requires collaboration Collaboration with development agencies, big tech companies, and research institutions is crucial to bolster data collection and analysis efforts by investing in data analytics and commissioning custom research reports. By sharing data feeds, industry forecasts and proprietary datasets, these partnerships can fill the data gap and empower startup businesses with the actionable, data-driven insights they need to thrive. Moreover, establishing industry-wide standards, such as common metrics and reporting frameworks, will enhance the reliability and comparability of startup-related data, enabling accurate assessments and benchmarking. Embracing a data-driven future Now, more than ever, Africa needs to boldly embrace data as a strategic asset. By experimenting with innovative data collection methods, harnessing advanced analytics, and providing actionable insights through collaboration, we can lay the foundation for a robust data-driven startup ecosystem. Empowering startups, investors, entrepreneurs, and policymakers with
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Next Wave: Every company will be a tech company
Cet article est aussi disponible en français <!– In partnership with –> This is a guest contribution from ’Lamide Young and Judith Hassan of Gumi & company Towards the end of 2022, Nigeria’s Central Bank announced it would be redesigning the country’s currency notes. A short time frame to deposit old notes and a consequent insufficient supply of new notes created a cash crunch that has been well documented and criticised. The scarcity meant businesses of all sizes had to adapt, including friendly neighbourhood ones run by owners who had withstood cashless payments for years or simply had no real need for it. Suddenly, people were buying everyday goods from local shops and making payments using their phones or ATM cards. Government data reported a year-on-year increase in mobile transfers of 230.6% in January 2023, while the Nigeria Interbank Settlement System (NIBSS) also reported a 118.2% increase in the value of transactions. Owners adapted because their businesses depended on it. Those who had already embraced digital systems and tools prior to all this were top-of-mind for customers who were careful about how they spent whatever physical cash they had. For businesses and service providers that did not adapt, they lost business to those who did. Nigeria’s cash limit policy was a boon for mobile payments | Charts by Ayomide Agbaje, TC Insights Nigeria’s recent experience is one case in many pointing to this truth: digital transformation is no longer an option for organisations; it is a requirement. It is a moving train heading towards the future, and those who do not get on board will be stuck in a world that is sure to vanish soon. Whether an organisation is a “digital native” or not, the promise and potential of (exponential) technology, data, and new ways of creating and delivering value, is immense. Here are the facts Organisations that aren’t digitised lag behind sector leaders by as much as 15% in market share and earnings. Making the choice to undergo digital transformation can either increase industry contribution to GDP over the next three years by over $1.25 trillion or reduce it northward of $600 billion. For emerging-market organisations, once the train is missed, catching up is difficult. Partner Message Join hundreds of African tech entrepreneurs, investors, media and ecosystem stakeholders at Africa’s biggest tech gathering in Morocco! Register now A common argument for not trying to catch up with digital transformation is that the markets organisations in Africa (especially) and the Middle East serve are themselves behind in their adoption of the core technologies that enable the digital economy (the internet being the cornerstone). There is also the lack of appropriate infrastructure to enable organisational efforts. Reimagined value does not seem crucial because the belief is that there will be insufficient consumers of it, if any, resulting in white elephants. Is there a point then? Where there is a lag, and where there is leadership, there are opportunities common and unique to both regions. In Africa, for example, initiatives such as the Digital Economy Initiative for Africa, by the World Bank, as well as the African Union’s Digital Transformation Strategy for Africa show the direction of both regional and global agenda to integrate countries which are falling behind into the digital economy. In the Middle East, projections show that the digital economy is expected to hit $500 billion by 2030 and contribute a 40% increase to GDP per capita. Data like this points to opportunities where they abound, as well as a commitment to creating them, where they seemingly do not. Sponsored: Meet the Max mafia What to do then? Today, the technology industry is one of the fastest growing, with major players in the business world being tech companies. These organisations are somewhat seen as separate from more traditional entities that do not focus on technologically-based goods and services. However, the evolving reality of our world is that technology can no longer stand separate as a descriptive term for certain kinds of companies. Today’s technology company is not (only) the company that builds apps or cool gadgets, as technology becomes a core part of value created (products and services), as well as operations for organisations across sectors and industries. In the 21st century, and beyond, every company will have to be a digital organisation, powered by technology, because that is what it will require to participate in and thrive in a digital economy. This is especially crucial for organisations in Africa and the Middle East (AME) where major gaps exist in infrastructure, skill of working populations, approaches to work, technology adoption, policies, and use of data. Bridging organisational gaps, putting in place the right foundational systems, and doing it today, will determine which organisations make it to the future, and end up defining it. Learn how organisations in Africa and the Middle East can radically innovate the way they currently work and increase stakeholder value through exponential technologies in our Digital Transformation Cheat Sheet. Author Profiles ’Lamide Young and Judith Hassan are, respectively, innovation & strategy leader, and knowledge & communications manager at Gumi and Company, an innovation factory working across Africa and the Middle East. Partner Message Will you join us? Book your pass to Europe’ biggest Startup and Business event today. Get tickets now We’d love to hear from you Psst! Down here! Thanks for reading The Next Wave. Subscribe here for free to get fresh perspectives on the progress of digital innovation in Africa every Sunday. Please share today’s edition with your network on WhatsApp, Telegram and other platforms, and feel free to send a reply to let us know if you enjoyed this essay Subscribe to our TC Daily newsletter to receive all the technology and business stories you need each weekday at 7 AM (WAT). Follow TechCabal on Twitter, Instagram, Facebook, and LinkedIn to stay engaged in our real-time conversations on tech and innovation in Africa. If you liked this edition of Next Wave, please share with your friends. And feel free to
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South Africa approves $86 million for e-policing
Lire en français Read this email in French. Editor’s Note Week 22, 2023 Read time: 5 minutes In South Africa and Nigeria, it seems like the pockets of citizens and the government are getting quite the heatwave thanks to skyrocketing fuel prices. Catch up on the scorching news and more from all across Africa. Pamela Tetteh Editor, TechCabal. Editor’s Picks SA approves $86 million for e-policing The Gauteng province in South Africa has given the green light to R1.7 billion ($86 million) for e-policing. This eye-popping sum will be used to acquire crime-fighting gadgets, including drones. Learn more. Nigeria ends fuel subsidies Nigeria has ended fuel subsidies. This move has sent transportation prices soaring to new heights. Now, it’s fueling quite a debate about the future of work in the country. Will folks have to pedal their way to the office? Learn more. Eskom suffers from fuel inflation Fuel is also burning holes in government pockets in other African countries.The expenses of South Africa’s state-owned power utility, Eskom, have more than doubled due to the cost of fuel. Learn more. CBN denies naira devaluation The Central Bank of Nigeria (CBN) dismissed claims that it devalued the naira to ₦630 per $1 from the ₦461 it previously was. Learn more. Zero tax for EV manufacturers During the West Africa Automotive Show, Nigeria declared a jaw-dropping 10-year tax “brake” for all electric vehicle manufacturers. Talk about revving up the green revolution! Learn more. Multichoice dabbles in payments As DStv grapples with its TV troubles, Multichoice dives into the payment game. It has launched a brand-new payment platform in partnership with Rapyd and General Catalyst. Learn more. Kenya discontinues Humda After spending millions of dollars, Kenya has paused the roll out of digital ID Huduma Namba. However, the new government is trying out other digital IDs. Learn more. WellaHealth In a rapidly changing job market, the key to retaining top talent lies in prioritizing employee welfare. But how does health insurance impact job retention, especially in volatile macroeconomic conditions? Learn the best practices to foster a healthier, happier, and more loyal workforce by getting this report now. Second stage of Hustler’s fund Kenyan president, William Ruto, has kicked off the sequel of the Hustlers Fund. This time around, the government will extend the support to Chamas and SACCOs Learn more. 500,000 customers affected by data breach South African retail giant JD Group has announced that it suffered a data breach that exposed the personal information of over half a million of its customers. Learn more. NearPay wins award at GITEX Nigerian fintech start-up Nearpays won the coveted Fintech and Blockchain Technology at the inaugural Gitex Africa tech conference in Marrakech, Morocco. Read more. Who brought the money this week? Morrocan PrestaFreedom, a home services marketplace, raised $1.1 million in an undisclosed funding round from Azur International Fund. Zofi, an Uganda-based fintech company, raised $1 million in pre-seed funding from Advancly, a Nigerian-based investor Advancly. Moroccan health tech company DataPathology received $1 million in an undisclosed funding round from Azur Innovation Fund. Zydii, a Kenya-based digital training company, raised an undisclosed amount in a pre-seed funding round from DOB Equity, Kua Ventures, Kaleo Ventures, and NaiBAN. What else to read this weekend? Two years post-acquisition, Paystack is expanding products and gunning for roots in African markets How Zambia is prepping to become Africa’s next major tech hub How will a unified FX rate affect virtual card operations in Nigeria? This platform wants to help SA creatives easily monetise their content. Here is how it works Tech builders in Nollywood are trying to solve the industry’s production and distribution problems Intron Health is bringing AI superpowers to hospitals in Africa Written by: Ngozi Chukwu Edited by: Pamela Tetteh 18, Nnobi Street, Surulere, Lagos, Nigeria Unsubscribe from TC Weekender
Read MoreNigerian start-up Nearpays wins coveted fintech prize at Gitex Africa
Nigerian fintech start-up Nearpays flew the country’s flag high at the inaugural Gitex Africa tech conference in Marrakech, Morocco, on Friday when it was awarded the coveted Fintech and Blockchain Technology category of the Supernova Challenge. Nearpays, a full-service financial payment platform that acts as an end-to-end financial service for all our clients, beat out stiff competition to scoop the $10 000 prize. Nearpays beats stiff competition Speaking to TechCabal after the win, Nearpays founder Victor Daniyan put into perspective what winning the competition means to his company and its future. “I’m super excited that it brings opportunities for start-ups in Nigeria, and we all have access to a better future. It shows that we can get to the top with the right platform,” Daniyan said. “This means more work. The Gitex Africa Supernova Challenge is the biggest pitch competition in Africa, with a total cash prize of $100 000 for categories such as Cybersecurity, AI and Digital Cities, Health Tech, and Sustainability and Agritech. “The competition was very tough. One thing I know for sure, especially for start up in Nigeria, is that we need a lot of mentorship to get to a productive stage. I’m sure that with the right mentorship, we can all do better,” Daniyan said. JUST IN! Nigerian Startup, Nearpays, emerges winner at Supernova Challenge Competition in Fintech and Blockchain Technology Category at GITEX Africa, in Morocco. pic.twitter.com/2XZJSPmGlw — NITDA Nigeria (@NITDANigeria) June 2, 2023 “I came with the intention to win all the way from Nigeria. I was determined; I was ready. It was a surprise, but I was also very determined to win,” Daniyan said. “I took the time to understand the people hearing the pitch. I took the time to research them, what businesses they were operating in, and a little bit about their personality from their LinkedIn page. I was able to make them understand our business in a very short space of time – just going straight to the point.” Nearpays simplifies online payments Daniyan said the prize will go a long to helping Nearpays get its payment card system licence, which costs around $15 000. Nearpays simplifies online payments based on the principle that payments should be seamless. The company has developed a way to put point-of-sale transactions back into the hands of users. The company says, “The experience is simple, on the go, and comes with no extra bank charges for all our users.” “I’ve been in telecommunications for about five years now. I started with Huawei and then moved to Nokia, where I helped set up the 5G space in Nigeria. My team has helped me come up with the right decisions and product. We have continuous development.” By most accounts Gitex Africa was an overwhelming success, bringing start-up, founders, investors, telecoms and IT companies from all over Africa and the globe together in Morocco to outline and develop the future of tech in Africa. Organisers welcomed over 900 big tech companies, government entities, start-ups and participants from more than 100 countries across ten halls and 45 000sqm of exhibition space in a purpose-built super venue at Place Bab Jdid, Bd Al Yarmouk in the Red City of Marrakech. Fintech prize puts Abuja start-ups on the map “It’s an awesome platform; it’s an awesome opportunity. I have not seen anything this big in a long time. I’m super excited that we have this in Africa. I’m reminded of one quote from Google that said Africa will have the next set of billions of users to appear on any tech platform in the world,” Daniyan explained. “It’s an opportunity for start-ups to connect, have mentors and show their products to the world.” “The competition has allowed me to connect with good mentors,” Daniyan said. “Of course, I’m still young, and I need mentors who have come before me, as well as give us publicity so more people get to know about our product in Abuja because most of the start-ups that are thriving are coming from Lagos, but it’s an opportunity for people to see that Abuja is also thriving in the start-up space in Nigeria as well, coming up with the best products and new technologies coming out from Nigeria and not coming from abroad. This will inspire more start-ups and show them an opportunity for start-ups in Abuja.”
Read MoreExclusive: Eyowo shares new timeline for resumption of interbank transfers
Eyowo has set Monday, June 12, 2023, as the new deadline for the resumption of interbank transfers. Meanwhile, the company is exploring alternative ways to compensate depositors who are in dire need of their funds in Eyowo. Digital bank Eyowo has now announced a new timeline for the restoring interbank transfers—Monday, June 12. Although Eyowo users can currently transfer money to other Eyowo accounts, they are still unable to transact with other banks. “Other functionalities of the Eyowo platform, such as airtime transfers, transfers within Eyowo accounts, and cable subscriptions, continue to operate normally. We are actively collaborating with its partner banks to resolve these issues, and they anticipate a resolution by the end of business on Monday,” Eyowo said in an exclusive interview with TechCabal. The company has also said that it is pooling funds from other sources to address the urgent needs of customers until then. Since Sunday, May 25, Eyowo users have faced restrictions in receiving and withdrawing funds from their Eyowo accounts after the digital bank’s MFB licence was revoked. The CBN declined to provide specific details regarding the reasons for revoking Eyowo’s license after TechCabal reached out to the apex bank. Speaking on behalf of Eyowo, Onyekachi Irozuru, a project manager team lead told TechCabal that one of the reasons for the revocation is the company’s failure to meet certain benchmarks set by the CBN for MFBs. They did not share specific details. Eyowo has assured its users that their funds are securely held in partner deposit banks, and the only hindrance they are currently experiencing is related to regulatory issues, specifically with interbank transfers. Eyowo pools funds for customers in dire need of cash Moreover, Eyowo says that it has been using various methods to provide funds to customers who have expressed urgent financial requirements. In a conversation with TechCabal, the digital bank shared its commitment to addressing customer needs while working closely with the CBN to resolve the situation. “We have encountered customers who require funds for fulfilling customer orders or paying medical expenses for their loved ones. Depending on the specific circumstances, Eyowo has been sourcing funds from its network of friends, supporters, and even employees have been utilising their personal resources to fulfil either partial or full amounts requested by customers,” it stated. TechCabal was not able to confirm these claims, but asked why employees are actively making personal financial contributions to address the issue. Onyekachi Irozuru, a project manager team lead at the digital bank explained that such camaraderie stems from the company’s culture, which fosters a sense of operating like a family. To illustrate why employees are going to great lengths to resolve the problem, Irozuru, who has been with the company for five years, recounted a personal experience, a time when his wife faced complications during childbirth, and his boss reached out to check on him. Upon learning about the complications, the boss swiftly arranged for Irozuru’s wife to be transferred to Reddington Hospital, a popularly expensive hospital. “When we arrived, it became evident that the [Reddington] hospital was already prepared for their arrival, promptly taking charge of the situation and ensuring a safe delivery for my wife,” he elaborated. “Eyowo genuinely cares about people, including both customers and employees, and that is why employees are motivated to go above and beyond to resolve the current problem,” Irozuru added. In contrast, certain Eyowo users have resorted to alternative methods to withdraw funds from their Eyowo accounts. Among these methods, some people are buying airtime and subsequently selling them to receive cash in return. Others are advertising the airtime on social media platforms, while some are using features like Palmpay’s Recharge2Cash to get cash. Eyowo, told TechCabal that the customers’ ability to access their funds through these means should serve as an assurance that their money remains secure and will be accessible by the end of business on Monday. Editor’s note: This article has been edited to reflect that Eyowo will only be restoring inter-bank transfers by Monday, and not its MFB licence. The company has not disclosed when the licence will be restored. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreFuel hikes trigger surge in ride-hailing prices, leaving customers and drivers discontented
Following the removal of fuel subsidies, fuel prices nationwide have skyrocketed, triggering a struggle for profits and cost savings among riders, drivers, and ride-hailing platforms. In his inaugural speech as President of Nigeria, Bola Tinubu announced the removal of fuel subsidies. This announcement has had an instant impact on the transport sector, with prices rising rapidly, particularly in the ride-hailing space. “I paid 4k from Obalende to Victoria Island!” Tobi, a content manager living in Lagos told TechCabal, sharing that the usual fare for this trip was around 1,500 Naira before this week. Tobi has now switched to public transportation to manage costs. Some observers say that this rise in prices may convince ride-hailing companies to offer ride-sharing services to riders. But there are some trust and safety concerns to consider. Illy, who uses Uber and Bolt, told TechCabal, “I won’t share a ride because I don’t trust people. Instead, I use Rida and inDriver too when prices on Bolt are too high.” On the other hand, Tobi said, “I can use the ridesharing feature only with people I know. Otherwise I will opt for public transport, even public bus fares are even high.” A different tale While customers say the prices for rides have increased, drivers say the prices still do not cover their operating expenses. “Due to this fuel subsidy issue, I don’t go out, the prices they (Uber) give are ridiculous,” he said. “I just bought N1000 fuel worth 2 litres, where will 2 litres lead you? Now they will give a trip of 1500-1700 which would last up to 45 minutes, and I will spend nothing less than 5 litres on that trip, so tell me how much profit I’m going to make?” said Finbar, an Uber driver in Lagos. Finbar has stopped working for now, until Uber reevaluates its pricing. According to him, Uber hasn’t significantly raised prices despite the fuel price hike and it is affecting drivers’ earnings. “We have not seen any mail from Uber that indicates change of prices due to the fuel subsidy removal,” he noted. Tope Akinwunmi, Uber’s country manager, told TechCabal that Uber is staying on top of the situation. He said, “we are aware that the news of the recent fuel hikes and fuel subsidy removal is affecting drivers on our platform, and we are taking an indepth look into this. Drivers are at the heart of everything we do, and we are currently reviewing the situation, and gathering feedback from drivers and riders to inform future changes. Once we understand the implications, we will share an update.,” While several drivers who spoke to TechCabal are dissatisfied with the current prices on the ride-hailing app, Uber is wary of decreased patronage if prices are too high. “We recognise the pressures drivers are under, including the increasing cost of living. It’s important to understand that fares do fluctuate as a normal part of any business based on various factors such as seasonality and the macroeconomic environment,” Uber concluded. What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
Read MoreHow will a unified FX rate affect virtual card operations in Nigeria?
In his inaugural speech, President Bola Tinubu confirmed that his administration would work towards a unified exchange rate. What will this mean for the operations of virtual cards in the country? President Bola Tinubu’s plan to unify the country’s exchange rate—following advice from the World Bank and the International Monetary Fund (IMF)—is now the subject of several conversations. Experts say the current exchange rate regime has made international payments difficult. Yet, moving to a single, market-determined exchange rate will affect virtual card operations in Nigeria. What will happen to virtual cards? Uzoma Dozie, CEO/Founder of Sparkle Nigeria, says he doesn’t foresee any significant impact on the virtual card businesses in the country, considering the current operational landscape and existing policies. “However, operational costs for Naira-dominated virtual card businesses with a foreign exchange component may experience increased operating costs, which depend heavily on various local and global economic factors. We also need to consider that virtual cards are already operationally more cost-effective than physical cards because there are no production, transportation, storage, or delivery expenses to worry about. It is too early to start speculating now as we look forward to how this will play out,” he told TechCabal. For Ibrahim Toyeeb Ibitade, CEO of Leatherback, a cross-border payments platform, until Nigeria fixes its FX shortage, a unified exchange rate will not affect the operations of virtual cards. “The only time we will see any significant impact is when the country has been repositioned and restructured so that we can generate as much FX as needed by different sectors of the economy. But for now, there will still be that scarcity problem because Nigeria isn’t generating enough FX,” he said. Traditional banks are the potential winners The $20 monthly limit on foreign transactions for Naira cards opened up the market for virtual cards. Dozie explains that if the Central Bank chooses to expand the FX market by permitting banks unrestricted access to buyers, there is a possibility for an increase in supply. This could lead to banks raising the FX limit on naira cards. “With the potential for a unified exchange rate to further open the market, banks can access FX more efficiently than was previously possible. Hence we can expect banks and other providers to increase card limits, whether physical or virtual and a more competitive operating environment,” he added. Charles Odogwu, a digital payments expert, shares a similar view. “Banks are going to open their doors and encourage customers to use their naira cards. There is a possibility that banks might not have a limit cap on spending because the FX is available, and there is no disparity in the rates. But on the other side, if the banks put a limit on their cards, virtual dollar cards will still exist and remain go-to alternatives for most people,” he told TechCabal over a call. A virtual card user who spoke to TechCabal anonymously claims that, from his experience, banks are more efficient in processing payments than fintechs when it comes to card services. “As much as banks have inefficiencies in terms of their infrastructure, I still believe that they have a higher tendency to succeed than fintechs. You’d hardly hear of a traditional bank announcing a downtime in its card services,” he said. Where does this leave fintechs? For fintechs that offer virtual card services, an upward review in the limit on naira cards could potentially hurt their business. While more Nigerians have gotten comfortable with virtual cards, the questions of trust and security could convince them to switch back to naira cards. Odogwu argues that while onboarding is much easier with fintechs, unlike traditional banks, the latter remains ahead in terms of trust. “If you noticed what happened recently with the CBN revoking the licenses of over microfinance banks [some of which are fintechs], the reaction is that people are moving their money from fintechs—even those unaffected,” he said. But Dozie says only a few startups have built their business models solely on providing virtual cards. Instead, they are often available as part of a financial services offering. “We expect there will always be a niche and demand for virtual cards, and I do not see how the impacts of a unified exchange rate will disrupt or threaten businesses that offer or accept virtual cards,” he told TechCabal. Damilola Robert, a growth marketing manager at Bitnob, an African fintech that provides virtual dollar card services, notes that the question is really about what extra services fintechs can offer: “So if they [fintechs] are now competing about quality and products, then that means that they need to beef up their customer support system. The ability to leave a positive mark in people’s minds will determine how long they survive in the market because customers now have alternatives.” What do you think about our stories? Tell us how you feel by taking this quick 3-minute survey.
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3 ways to check NHIF status 2023
The National Hospital Insurance Fund (NHIF) is a government-run medical insurance scheme in Kenya. As a policyholder, it is crucial to stay informed about your NHIF status to ensure uninterrupted access to healthcare benefits. This guide will provide a step-by-step explanation of how to check your NHIF status in Kenya. Ways to check your NHIF status You can check your National Hospital Insurance Fund status by using the following methods: SMS and USSD NHIF Mobile App NHIF Website How to use SMS/USSD to check your NHIF status You can easily check your National Hospital Insurance Fund status or get your details by sending an SMS (text message) with the format: ID {space} Your ID Number] e.g. (ID 12345678) to 1550. For USSD, simply dial *155#, and follow the easy prompts. How to check your NHIF status using app/website Once you can navigate the National Hospital Insurance Fund website, you’ll easily navigate the app to check your status 1. Visit the National Hospital Insurance Fund website To begin the process of checking your status, you will need to access the National Hospital Insurance Fund official website. Open your preferred web browser and enter the following address: www.nhif.or.ke. This will take you to the NHIF homepage, where you can find various information related to the scheme. 2. Navigate to the ‘Self-care’ section On the NHIF homepage, look for the “Self Care” tab or link. Clicking on this tab will redirect you to a page that provides several options for self-service functionalities. These functionalities include checking your status, contributions, and claims, among others. Enter your ID number and click “get OTP”. 3. Check NHIF status Once you have successfully logged in to your National Hospital Insurance Fund account, navigate to the section that allows you to check your status. The exact location of this section may vary depending on the website’s design and updates. Look for options such as “Check Status,” “Membership Details,” or similar terms. Click on the appropriate link or button to access your NHIF status. Final thoughts on how to check your NHIF status Staying up to date with your National Hospital Insurance Fund status in Kenya is crucial for availing yourself of healthcare benefits. By following the step-by-step guide provided above, you can easily check your NHIF status online through the official NHIF website. Regularly checking your status ensures that you can enjoy uninterrupted access to the medical services covered by National Hospital Insurance Fund. Do you want to learn how to pay for NHIF using Mpesa? Read this.
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Check TUT exam results 2023
Checking your Tshwane University of Technology (TUT) exam results is an important step towards tracking your academic progress. By following a few simple steps, you can easily access your results online. This guide will walk you through the process of checking your TUT exam results, ensuring that you stay informed about your academic performance. 1. Visit the TUT official website To check your exam results, start by opening your web browser and navigating to the official website of the Tshwane University of Technology. You can do this by entering the URL, “www.tut.ac.za,” into the address bar and pressing enter. This will take you to the TUT homepage, where you can access various resources related to your studies. 2. Navigate to the examination result portal Once you have reached the TUT homepage, look for the “Exam Results” table under the “Tools” section. Click on the link or button to access the TUT result portal, which serves as the gateway to your academic information to check your results. 3. Log in to the exam results portal On the results login page, enter your credentials, which usually include your student number and ITS PIN. Ensure that you enter the correct information to avoid any login issues. Then follow the on-screen instructions to complete the process. 4. Access your TUT exam results After accessing your exam results, take the time to review them carefully. You may find details such as your subject marks, overall grade, and any additional comments provided by your lecturers. If you wish to keep a physical copy, you can print your results using the print function of your web browser. That’s it about how to check your TUT results. Final thoughts on how to check TUT results Checking your TUT exam results is a straightforward process that can be completed through the TUT website. By following the steps outlined in this guide, you will be able to access your results and stay informed about your academic progress.
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