Nigeria’s Central Bank denies reports of a Naira devaluation
Daily Trust exclusively reported that a Naira devaluation in the early hours of Thursday. Nigeria’s Central Bank has denied that any such devaluation happened. Nigeria’s Central Bank has denied reports of a devaluation of the Naira that made the rounds this morning. A tweet from the CBN’s handle said, “CBN did not devalue the Naira,” alongside a picture of the front page of a Nigerian newspaper. The Nigerian publication, Daily Trust, exclusively reported this morning that “the CBN devalued the Naira to 630/$1.” The publication based its story on a rate it obtained from the Importers and Exporters window. However, it would seem that the I&E rate that led Daily Trust to believe that a devaluation had occurred was a single, one-off transaction. At the time of this report, TechCabal confirmed that Stanbic IBTC bank, one of Nigeria’s leading banks, has quoted today’s official exchange rate at N464/$1. It means that there have been no official changes in the FX rates. The devaluation reports undoubtedly have their roots in Bola Tinbubu’s swearing-in speech, where he confirmed that his administration will address the current FX policy. Nigeria operates a multiple exchange window, with the official rates (N464) trading well below the parallel market rate (N750). Tinubu’s intention to address the FX policy is curious, given that it is the purview of an independent Central Bank. Nevertheless, the Central Bank has repeatedly been advised by the World Bank to unify the exchange rates. The World Bank and many other leading economists say that multiple exchange rates lead to uncertainty and create room for arbitrage. Nonetheless, the CBN has held firm, retaining a pegged exchange rate. Still, it appears that it may change that position, given Bola Tinubu’s swearing-in speech. The new President began by declaring an end to fuel subsidies, with the country’s petroleum corporation announcing new and increased fuel prices on Wednesday. That move, alongside an earlier report by Bloomberg that a 15% devaluation of the Naira is among Tinubu’s earliest priorities, may have led observers to believe that the now-debunked news of the devaluation.
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👨🏿🚀 TechCabal Daily – Fuel Rush
Lire en français Read this email in French. 1 JUNE, 2023 IN PARTNERSHIP WITH Happy new month Here’s your weekly reminder to catch our shows on YouTube. If you want to see what startups are doing in Africa, then My Startup in 60 Seconds is the way to go. And if you’re looking to work in these startups and gain the skills needed, then you should check out Entering Tech. The great news is all the videos are one-minute each. In today’s edition Logistics services fees balloon in Nigeria Eskom suffers from fuel price inflation Starlink is adding naira cards soon Theranos founder starts prison sentence The World Wide Web3 Event: The Moonshot Conference Opportunities NIGERIAN LOGISTICS SERVICES TO INFLATE COSTS BY 20–50% Nigeria’s newly elected president, Bola Ahmed Tinubu, is kicking off his regime on a high note. Literally. The cost of fuel has skyrocketed to over ₦600 ($1.60) per litre from ₦185 ($0.40) since President Tinubu announced the removal of fuel subsidy, yesterday. Logistics service providers now say that this will result in a 50% increase in logistics service prices. Side bar: The federal government of Nigeria has been shouldering a significant portion of the actual cost of fuel. This has kept fuel prices artificially low for decades—between ₦25 ($0.054) to ₦185 ($0.40) per litre. But worsening government finances means that fuel subsidies no longer make financial sense. A fuel rush: This removal is not the new president’s idea, though. This change was bound to happen in June through the implementation of the Petroleum Industry Act. PresidentTinubu’s announcement may only have pushed the timeline up a couple of weeks—and prompted a mad rush to fuel stations. The new pump prices for fuel will range between ₦488 ($1.08) and ₦550 ($1.19) per litre, but some fuel stations are already charging more than that, even ahead of schedule. Like a baton, the price increases will be passed on to customers of transportation services. Bolt and Uber prices are already noticeably higher than last week. Logistics startups told TechCabal that customers should expect a 20–50% increase in delivery prices. 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. ESKOM SUFFERS FROM FUEL PRICE INFLATION Fuel is also burning holes in government pockets in other African countries. Per TechCentral, the expenses of South Africa’s state-owned power utility, Eskom, paid a staggering R21.4 billion ($1.08 billion) in the 12 months leading up to March 2023, compared to the previous annual expenditure of R10 billion ($505.7 million). Why? The price of fuel has skyrocketed, and Eskom needed a lot of fuel to keep its open-cycle gas turbines running during peak-demand periods. Moreover, Eskom reportedly had to cater for unexpectedly higher volumes of operation than initially budgeted for. There’s more: Eskom’s fleet of primarily coal-fired power stations has been breaking down frequently resulting in unprecedented levels of blackouts, which have greatly affected the economy. South Africa’s central bank estimates that these power outages will shave off a significant two percentage points from South Africa’s economic growth this year. Really bad numbers: The energy availability factor, which measures the usable capacity, plummeted to 56% during the financial year. Eskom’s loss before tax has almost doubled, skyrocketing from R11.9 billion ($601.8 million) to a staggering R21.2 billion ($1.07 billion). To add fuel to the fire, gross debt securities and borrowings have surged by 11%, reaching a jaw-dropping R439 billion ($22.2 billion) in the year leading up to March. The rand has taken a significant hit this year, plunging by almost 14% against the mighty dollar. MORE FROM TECHCABAL Kenyan content creators are pushing back against proposed taxes. A last-minute increase in Nigeria’s borrowing threshold raises concerns over rising debt. STARLINK TO ACCEPT PAYMENT FROM NAIRA CARDS Starlink is on the verge of approving payments made with naira cards. In an email, the Elon Musk-owned internet company informed customers of its plans to process payments in naira, including more local cards in Nigeria. By June 6, customers will need to update their payment information on their account. This update is being implemented in response to customer feedback and may also be influenced by the challenges faced by Nigerians in purchasing the product due to restrictions. ICYMI: In March, Payfi and SD Global Impact Services Ltd (SDG) joined forces to provide Nigerians with the option to purchase Starlink devices in instalments using naira cards. This arrangement was introduced shortly after the launch of Starlink in Nigeria, as there were restrictions on naira cards for making purchases in dollars. Zoom out: Starlink received approval to launch in Nigeria in May 2022, and it started operating officially In January 2023. The one-time hardware officially costs ₦268,584 ($584) while its monthly service fee costs ₦19,260 (41$). Given the country’s current ban on international transactions on domestic cards, Nigerians have been paying more than the official rate. Except for those with domiciliary cards, users might have to pay up to ₦440,000—equivalent to $956 at the Central Bank of Nigeria’s official rate of ₦460 to $1—when using virtual dollar cards that offer parallel rates as high as ₦743 to $1. ELIZABETH HOLMES BEGINS PRISON SENTENCE Theranos founder Elizabeth Holmes began her 11 years and three months sentence in a Texas prison yesterday. Holmes is being incarcerated for defrauding investors in a failed blood-testing startup—Theranos—once valued at $9 billion. A quick recap:In November 2022, Elizabeth Holmes, the founder of Theranos, was sentenced by a federal judge to prison. This came after she was convicted by a jury in January 2022 on three charges of investor fraud and one charge of conspiracy. The trial, which lasted three months, led to her conviction and subsequent sentencing. The downfall of Theranos: At the young age of 19, Holmes founded Theranos, a company that claimed to revolutionise blood testing. With a technology promising to scan for hundreds of
Read MoreA last-minute increase of FG’s borrowing threshold raises concerns over rising debt
Nigeria’s senate has raised the Ways and Means provision from 5% to 15% prompting important questions about rising debt and inflation. Two days before the start of Bola Tinubu’s Presidency, members of the Nigerian senate held an emergency meeting to amend the Central Bank of Nigeria (CBN) Act. Presided over by the Senate President Ahmad Lawan, the Senate raised the Federal Government’s threshold for borrowing money from the CBN. The government borrows from the Central Bank through Ways and Means advances. For years, ways and means loans are capped at 5% of the government’s revenue from the previous year. The Senate amendment has now raised that limit to 15% despite the fact that President Buhari’s administration borrowed a record N22.7 trillion from the Central Bank. Section 38 of the CBN act says that whatever advance the CBN gives to the Federal Government must be repaid at the end of the financial year in which they are granted. But the Buhari’s adminstration’s excessive borrowing meant this was often impossible. In the end, the Senate also approved a request to restructure the N22.7 trillion loans as bonds. Money printing worsens inflationary pressures Ways and means advances are often referred to as “money printing.” While the Central bank doesn’t literally print the money it loans the government, the manner in which it funds the country’s budget deficits increases money supply. This increase in money supply without a corresponding increase in outputs often triggers or worsens inflation. A 2022 report by the World Bank and the European Intelligence Unit (EIU) pointed out that, “The CBN has continued to print money for the Federal Government…continued printing of money at the same time as tightening policy would prevent effective control of the price level.” Sheriffdeen Tella, a professor of Economics, makes a similar argument. According to him, “The amendment of ways and means is bad for the economy. Ways and means financing is inflationary. It allows the government to be carefree with borrowing for consumption.” Ugochukwu Obi-Chukwu, the Founder of the publication, Nairametrics, believes the increase in Ways and Means advances is worrisome. “Currently, Ways and Means is N22 trillion, if we are to start to payback, we are looking at N2.2 trillion annually on Ways and Means alone. There is also public debt to be serviced. In terms of fiscal revenues, it is bad.” The Central Bank will remain in the limelight Godwin Emefiele’s time as Central Bank governor has been complicated. Despite starting out with promise, he’ll be remembered for a failure to rein in inflation, which stands at 22% today, poor FX policies, and reducing transparency at the Central Bank. Notably, Emefiele has contributed to a massive increase in government’s borrowing, allowing ways and means advances to often cross the 5% threshold. Those advances were also left unsettled at the end of the financial year as prescribed by the constitution. When Emefiele leaves office later in June, there’s no doubt that the Central Bank will continue to play an outsized role; he has set the precedent. Under Emefiele, the CBN funded agricultural schemes like Anchor Borrowers Program (ABP). It also dabbled into the manufacturing and energy sectors, extending a total of $9bn in loans to these sectors. As the Tinubu government gets down to work and to the critical question of how to fund budget deficits—which will remain high even when subsidy payments end—it will know that it can lean on the Central Bank to print more money. Raising the ways and means threshold to 15% against a backdrop of a Central Bank that has not said no to the Federal Government in years may lead to more borrowing and even worse inflation.
Read MoreTaxing creativity: Kenyan content creators pushback against proposed taxes
Kenyans are opposed to the proposed Finance Bill 2023, which aims to take more money from their already thin pockets. The proposal also wants to receive revenues from content creators and could kill the launch of an intended $40 smartphone. Kenya’s Finance Bill 2023 proposal has received negative coverage over the last couple of days and for good reason. It proposes ways to increase the tax base, targeting previously untaxed areas that have since boomed, such as online content creation. The proposed tax policy wants content creators such as bloggers, YouTubers, and social media influencers to pay taxes based on their revenues. The proposed regulations mandate content creators to register with tax authorities and fulfil their tax obligations. While the government’s rationale is to profit off a growing digital economy, content creators are worried that new taxes amount to multiple taxation. In 2020, Kenya introduced two taxes for the digital economy: Digital Service Tax and Value Added Tax on Digital Marketplace Supply. Resident and non-resident entities providing digital services in Kenya pay Digital Service Tax (DST) at a rate of 3.0% of the total transaction value. Non-resident digital marketplaces also pay Value Added Tax (VAT) of 16% on taxable services provided to Kenyan residents. DST and VAT on Digital Marketplace Supply (VAT-DMPS) are paid by the 20th day of each month. The recently proposed amendment for the Financial Bill 2023 introduces two additional digital taxes. First, a 3% tax will be imposed on transferring crypto and NFTs. Also, a 15% tax will be levied on digital content monetisation, which includes payments made to content creators for promoting and advertising products and services online, such as sponsorships, affiliate marketing, merchandise sales, and paid subscriptions. These taxes are different from DST and 16% tax on digital services. If approved by Parliament, the taxes will be effective from July 1. “While everyone thinks I’ll wake up on July 1st a happy man, I’m worried about the people I have to pay every month. I have no idea how I’m matching Ruto’s terms. I’ll either review contracts to change terms of operation or terminate them,” says one of Kenya’s leading online content creators. “Now I understand why entrepreneurs elsewhere take jobs outside their home countries. I can’t allow myself to suffer willingly because of the government,” adds the creator. The bill makes a $40 smartphone an impossibility Under the proposed amendments, taxes will also be levied on imported raw materials used to assemble devices like smartphones. This new tax is linked to Kenya looking to assemble smartphones locally starting in July, which should cost $40. However, partners involved in the project warned the government that the $40 cost would not be achieved thanks to additional taxes proposed in the bill. Recently, telco Safaricom asked the parliament’s finance and planning committee to revise the proposed tax rates in the Finance Bill 2023 to achieve the goal of $40 smartphones. During public hearings, Safaricom’s head of venture, Karanja Gichiri, emphasised the need to address import, excise, and VAT concerns to align with the president’s vision of affordable phones. Gichiri proposed reducing taxes to KES 3,000 ($27), resulting in a final price range of KES 6,500 ($47) to KES 7,000 ($51) for locally assembled smartphones. Audit firm PwC representative Job Kabochi also suggested amendments to the VAT Act and Excise Duty Act to incorporate locally assembled and manufactured phones. Housing fund The bill further introduces a proposal to fund Kenya’s affordable housing initiative through a 3% monthly contribution from employees’ basic salary towards the National Housing Development Fund (NHDF). According to the bill, the employer will contribute 3.0% while the employee will be responsible for another 3.0% of the contribution. This has been a controversy that continues to be debated as many people do not want to take part in it. For instance, matching housing fund contributions for 10 employees is equivalent to employing one minimum wage worker, which is unreasonable. With a struggling economy and rising costs, businesses may have to let go of an employee to meet statutory obligations. Employers will share the burden of mandatory deductions with NHDF. This will reduce employee pay and require employers to match contributions. As a result, companies may face higher costs, leading to possible hiring freezes and job cuts. Employees may also seek pay raises to offset the increased deductions. When you see it. The president is really pushing this silly housing agenda down our throats. Update already on eCitizen. #RejectFinanceBill2023 pic.twitter.com/eMXjgtAfvR — Kanali (@NicKanali) May 31, 2023 The fund continues to attract controversy from Kenyan content creators Increased taxes and prices are already affecting consumers and businesses, making higher prices undesirable. The impending 16% VAT on petroleum products will further raise petrol prices, which affect the cost of other goods and services. It is understandable why Kenyans do not want to be associated with the proposal and why it could adversely affect both workers and employers if the bill is enacted. Online protests, particularly on Twitter, can be observed through the trending hashtag #RejectFinanceBill2023. The government of Kenya Kwanza through Boya Yangu is actually building concrete slums. How do you even expect someone to stay in a 30 sqm 1 bedroom house? Is there a room for even turning around in this house? 40 sqm for 2 bedrooms? WTH is this? #RejectFinanceBill2023 pic.twitter.com/RxWFEBjXOI — Robert ALAI, HSC (@RobertAlai) May 31, 2023 A section of Kenyan politicians are not happy about NHDF TechCabal is following the bill’s progress and whether it will be signed by President Ruto or rejected in the coming weeks
Read MoreAs new fuel prices hit N488 per litre in Lagos, Logistics startups will increase prices by 50%
“Fuel subsidies are gone!” With those words, an otherwise unexciting first speech by President Bola Tinubu soon became a trending topic. While the removal of fuel subsidies was written into law through the Petroleum Industry Act, it was due to happen in June. Bola Tinubu’s announcement may only have pushed the timeline up a couple of weeks, but it prompted a mad rush to fuel stations. The Federal Government has kept fuel prices artificially low for decades—between N25 to N185 per litre. But worsening government finances means that fuel subsidies no longer make financial sense. A BusinessDay report has now confirmed that the new pump prices for fuel will range between N488 to N550 per litre. While fuel price increases will affect every aspect of the Nigerian economy, the logistics and transportation sector will arguably feel the impact first. Logistics startups that spoke to TechCabal say they will raise prices this week and are preparing for a slowdown in delivery requests in the short term. Emeka Mba-Kalu, the CEO of Sendstack, a Lagos-based logistics startup, told TechCabal that many logistics companies accepted the inevitability of fuel price increases. He said, “Cost of fuel remains in our top two drivers of operating expenses, so we have watched the progression of the fuel subsidy conversation.” Price increases will be passed on to customers Mba-Kalu shared that logistics startups will likely respond with a 20-50% increase in delivery prices. The average delivery prices in Lagos range from N1,500 for short distances like Yaba to Ikoyi to N3,000 for deliveries across longer distances like Ikeja to Lekki. Teniola Olugbode, a Lagos-based entrepreneur who runs Tamak Logistics, told TechCabal that his company is still analysing the situation. “We intend to raise prices on Friday, and at the moment, it feels like we have to double the prices of deliveries along all our existing routes. The new fuel price of N488 per litre means that an input cost has nearly tripled.” Olugbode also admits that a short-term slowdown in order volumes will almost certainly follow price increases. A short-term slowdown is inevitable Olugbode told TechCabal, “We expect many customers to pull back at first. There will be an immediate drop in deliveries and requests because people will look for alternatives or think twice about whether they need an item delivered. It’s a position Sendtack’s Mba-Kalu agrees with. According to him, “It is also possible that price-sensitive customers draw back on their demand for logistics services, which would further affect startups. But we can’t say for sure; the next few months will tell.” In the interim, logistics companies will have to think quickly. Olugbode says that Tamak will start to talk up its bulk-delivery services, which offer lower prices for several deliveries to a particular location. The price hike may also force delivery companies to discontinue same-day deliveries for non-essential items. For now, many companies are still in their strategy rooms debating how to adapt and remain competitive. For mobility services like Bolt and Uber, prices are already noticeably higher than last week. Both companies are yet to comment on the fuel price increases publicly.
Read MoreSA turns to tech to combat crime, as murder rate reaches 60,000 in 90 days
South Africa’s law enforcement agencies are integrating technology, including drones, to combat crime in the country. According to the latest statistics from the South African Police Service (SAPS), more than 6,200 people were murdered between January and March 2023—an average of about 70 murders a day. In the same time period, 10,500 cases of rape were also recorded, an average of 116 cases a day. With such high figures being recorded while other preventive measures not having the most effects in curbing crime, the SAPS seem to be willing to embrace technology as a solution. Speaking at the presentation of the crime statistics, minister of police Bheki Cele stated that law enforcement would henceforth be incorporating numerous technologies to tackle the problem of crime in South Africa. Among the technologies touted by Cele include the use of drones as well as the use of highly specialised teams “who will be trained further at provincial and district level, to effectively track and apprehend offenders”. “The SAPS is also purchasing unmanned aerial vehicles or so-called drones to better police from the sky. More drone pilots are also being licensed and drone pilot interns are being recruited. Body-worn cameras as well as shot spotters in high-density crime areas are being prioritised,” said Cele. Last week, the Gauteng Department of e-Government stated that it would allocate a budget of R1.7 billion (~$86 million) to various “e-policing” initiatives including CCTV deployment, drones, and “tracking technology to keep tabs on vehicles, firearms, and other assets used to fight crime to enhance oversight over its strategic assets”. Additionally, the department will also seek to introduce an “e-panic button” which would be linked to law enforcement agencies, CCTV, and a new state-of-the-art Integrated Command Centre in hopes to vastly improve response time to criminal complaints.
Read MoreMeet the Zambia startup using space technology to improve farm yields
Ignitos Space is a Zambia startups which uses space technology to bring more efficiency to the country’s agriculture sector. According to data by the World Bank, agriculture and agribusiness have contributed around 20% of Zambia’s gross domestic product (GDP) and about 12% of national export earnings in recent years. Zambia boasts a population of over 19 million people, and favorable weather conditions which encourage year-round farming. As such, the potential for agriculture to drive socio-economic progress in the country is high. To take advantage of this, startups like Ignitos Space are inventing products which have the potential to accelerate the growth of the country’s agriculture industry. Using space technology via orbital satellites, Ignitos Space provides farmers with insights about what kind of soil is on their land and what crops it is suitable for. Additionally, it equips farmers with information about their land’s water reticulation, the state of their crops, and so much more. TechCabal caught up with Ahmad Hamwi, founder and CEO of Ignitos Space, to learn more about the startup’s product offering. TechCabal: Please tell us more about Ignitos Space and the problem you are trying to solve through your product offering Ahmad Hamwi: Ignitos Space is trying to solve the problem of lack of farming data on the ground. When it comes to getting agriculture data, the usual modus operandi is to go measure, check your soil, do analysis, and then decide what you want to do with the land. But since the majority of the farmers in Zambia and Africa in general are small to medium-scale farmers, they cannot afford to do soil analysis every two weeks. So that’s when I came up with the idea to use satellite technology for that. Satellite technology in agriculture is nothing new. It’s something that’s been there for maybe 10 years now, whether you use remote sensing, to check for different indices from vegetation index to water index and other stuff. So what I did is come up with an AI that can get multiple satellite images from multiple satellites and combine them together based on the research that we’ve done. From that info, it can tell the farmer the state of his farm, if it needs more water, if there’s a problem with vegetation, what crop is the best for that area, and few other indices that will enable this farmer to have actionable insights on the ground. With that info, the farmer can do precision farming instead of just gambling. They can get all this data through a subscription which costs only $10 a month. TC: Majority of the people actively involved in agriculture are senior citizens who might not be very well versed in using technological tools like the one offered by Ignitos Space. How have you been tackling this challenge to increase adoption of your product? AH: That’s true, and that’s the main challenge that we are solving. You see, I can give you a username and password for one of the satellites from NASA, for example, and tell you to do what you want with it. But you will not understand how it works, what to click, where to click, for you to be able to reach your farm and understand what’s happening on the farm. And that’s someone who is into tech or knows about tech. So how can we expect a farmer who doesn’t even have a smartphone to understand that tech? So what Ignitos Space is doing is bridging this gap between the farmers who need the data, and the people who are offering the data. When we take that data from the satellite, and we combine it with different satellites’s data from different companies, our AI makes it into actionable insights that anyone can understand, even if they are tech illiterate. All they need to do is dial the shortcodes or click on the app, then it will triangulate them using GPS. So that’s how we’re working on it. And that’s why we’re also implementing USSD technology because most of the farmers don’t even have smartphones, or access to the internet. TC: Apart from that particular challenge, what other challenges has Ignitos Space faced in its operations? AH: Our biggest challenge, which is the challenge for many entrepreneurs, is the lack of funding. When we won some competitions in the US, for example, they told us to incorporate in the US, and then you can access funding. Even when we won a competition in South Africa, they said incorporating in South Africa will give you access to funding. But our ethos for the company is that this is a Zambian company, and we want to push Zambia to be on the world map. But I believe that one day, we will get funding or we will come up with our own capital by doing some other activities related to the same project. TC: In terms of opportunities, can technological innovations like Ignitos Space disrupt the farming sector in Zambia? AH: 100%. Zambia is very well positioned in terms of agriculture because first, we have 75 million hectares of land, and only 15% of that is actually used. So there’s a lot of potential for land to be used for agricultural purposes and technology can play a vital role in facilitating this. The second and very important part is that we have 10 months of good weather in Zambia. It’s not like other countries in our region where they have extreme weather for months per year. That allows our vegetation to grow very well, very fast, and with great results. Also, we don’t have many diseases compared to other countries, which is why we have a lot of good crops here. Combining all those factors with technology that provides data which facilitates is a great combination which can take the country’s agriculture sector through leaps and bounds. I believe we are well positioned to be the food basket of Africa, if not the world, if we can rightly incorporate technology
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👨🏿🚀TechCabal Daily – Nvidia joins the trillion-dollar club
Lire en français Read this email in French. 31 MAY, 2023 IN PARTNERSHIP WITH Good morning We’re out on the streets of Marrakech today. From now till June 2, you can throw hands with catch our CEO Tomiwa Aladekomo and editor-in-chief Adrian Ephraim at the GITEX Africa conference in Morocco. If you stop by and say hi, you may get some gifts and have your headshot in tomorrow’s edition of TC Daily. In today’s edition Nvidia is now a trillion-dollar company Users get creative at Eyowo Researchers against AI CardoO launches smartwatch The World Wide Web3 Event: Africa Tech Summit London Opportunities NVIDIA JOINS THE TRILLION-DOLLAR CLUB Nvidia has joined the trillion-dollar club and it’s thanks to artificial intelligence (AI). Bloomberg reported that the share price of the California-based firm shot past $412 on Tuesday, making the firm worth more than $1 trillion, like Apple, Amazon, Alphabet and Microsoft currently are. All because of AI. Per Bloomberg, Nvidia’s shares have been on an incredible journey since last week when it dropped a bombshell AI-powered sales forecast of $11 billion in Q2. People are going crazy over Nvidia, and rightfully so! This isn’t one of those situations where AI is just a buzzword thrown around to excite investors. As the powerhouse chipmaker, Nvidia has been leaving its competitors in the dust when it comes to developing mind-blowing graphics chips. But here’s the kicker: while others were still scratching their heads about artificial intelligence, Nvidia had already placed some major bets on it. They were playing the AI game before anyone else even took it seriously. Now, with the mind-boggling demand for AI chips and software soaring to new heights, Nvidia’s stock is shooting through the roof. What’s got everyone in a frenzy? Well, Nvidia just dropped a bombshell announcement about an AI supercomputer platform that’ll let tech companies create their very own versions of mind-blowing language models like ChatGPT. They’ve also unleashed a whole bunch of cutting-edge products in the realms of robotics, gaming, advertising, and networking, all fueled by the power of artificial intelligence. And here’s the icing on the cake: Nvidia has also proven that their graphics chips are the ultimate champions when it comes to handling AI workloads. 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. EYOWO USERS GET CREATIVE Eyowo’s customers are making a way where there seemed to be no way. Nearly a week after the CBN revoked the digital microfinance bank’s licence, its users are still unable to access their funds in the bank. As a result, some users have resorted to buying airtime and cable subscriptions on the platform with the intention of reselling them in order to retrieve their money. How? Even though withdrawals have paused, options like airtime purchases and cable subscriptions are still active on the Eyowo app. So, some users are purchasing airtime with the money stuck in the app and reselling them to obtain cash. While some are advertising the airtime and cable subscription for sale online, others are simply selling it on fintech platform PalmPay using its Recharge2Cash option. Sound familiar? It appears that this strategy is not novel as a Twitter user also affirmed that he did the same thing when fintech platform Carbon experienced a similar downtime in the past. He tweeted, “Similar 5 days of downtime happened with Carbon, and I had to buy airtime to empty my account.” Why? Many Eyowo users have nagging personal needs only money can solve. Some business people need the money to fulfil their orders and find other operating activities. Others have nagging needs that only money can solve. Eyowo has assured its users that it is working with the CBN to resolve the matter and restore normalcy. But can things go back to normal for Eyowo after this? Only airtime will tell. MORE FROM TECHCABAL UberGo is gaining more traction in Lagos, but riders want more. South Africa’s central bank says load shedding is slowing down the country’s economic growth. RESEARCHERS SAY WE SHOULD BAND TOGETHER TO FIGHT AI Skynet is coming. Or at least some people think so. A group of top AI researchers, engineers, and CEOs have come together to issue a warning on AI’s potential threat to humanity, in a 22-word statement. The statement emphasises the need to view the risks associated with AI as a global priority, highlighting its significance alongside other societal-scale risks like pandemics and nuclear war. Who’s warning us? Prominent figures, such as Demis Hassabis, CEO of Google DeepMind, and Sam Altman, CEO of OpenAI, along with numerous other signatories, have put their names on the line to support this warning. The latest statement throws itself into the ongoing debate about AI safety, bringing in another high-profile intervention. A previous warning: Earlier this year, Elon Musk and top AI researchers called for a pause on “giant AI experiments”, in an open letter that reads: “We call on all AI labs to immediately pause for at least 6 months the training of AI systems more powerful than GPT-4.” According to The Verge,the letter faced criticism on multiple fronts. Some experts argued that it exaggerated the risks associated with AI, while others acknowledged the potential dangers but disagreed with the suggested course of action proposed in the letter. Dan Hendrycks, executive director of the Centre for AI Safety, told The New York Times that the brevity of today’s statement—which doesn’t suggest any potential ways to mitigate the threat posed by AI—was intended to avoid such disagreement. “We didn’t want to push for a very large menu of 30 potential interventions,” said Hendrycks. “When that happens, it dilutes the message.” CARDOO LAUNCHES IOT-ENABLED SMARTWATCH CardoO, an Egyptian startup focusing on Internet of Things (IoT) devices, has unveiled its first IoT-enabled smartwatch. This news comes shortly after CardoO secured a seed funding round of
Read MoreWhile Eyowo works to get its licence back, customers are using creative ways to move money out of the app
Nearly a week after the CBN revoked Eyowo’s Microfinance bank license, its users are still unable to access the funds in the digital bank. As a result, some users have resorted to buying airtime and cable subscriptions on the platform with the intention of reselling them in order to retrieve their money. A day after Nigeria’s Central Bank revoked the microfinance bank licence of the digital bank Eyowo, customers realised they could no longer receive or send money on the app. Despite assurances from Eyowo that it is working on the issue, customers have found another way to withdraw their money— buying airtime or cable subscriptions with the money in their Eyowo accounts and reselling them. A statement from Eyowo assured customers that it was working to resolve the situation and gave a timeline of 72 hours. But three days after that timeline, several customers told TechCabal that the situation persists. Eyowo told customers on Friday that it had “made significant progress in resolving some of the challenges you have faced due to the CBN directive. We are working to ensure you have complete access to your money. You will be able to send money to any bank through your Eyowo, however this will not take effect today, due to the administrative requirement that requires a couple of working days.” Nevertheless, the patience of numerous customers is wearing thin as their personal and business needs are being delayed due to the unavailability of their funds in Eyowo. In response to this frustrating situation, customers are exploring alternative methods to withdraw funds from their inaccessible Eyowo accounts. Even though withdrawal have been paused, options like airtime purchase and cable subscription are still active on the Eyowo app, so some users are purchasing airtime with the app and reselling them to obtain cash. While some are advertising the airtime and subscription for sale online, others are simply selling it on Palmpay using its Recharge2Cash option. “I sent out all my funds using airtime, [but I had to do it in batches because] the maximum amount of airline you can buy on Eyowo is N8000,” a user said. TechCabal has confirmed that the airtime option is still available andbut there is no limit to how much you can recharge. It appears that this strategy is not novel as a Twitter user also affirmed that he did the exact same thing when fintech platform Carbon experienced a similar downtime in the past. He tweeted, “Similar 5 days of downtime happened with Carbon, and I had to buy airtime to empty my account… The lesson here is never to keep bulk money with Fintechs.” Customers who use Eyowo as business accounts have tweeted about being under enormous pressure from customers. A young lady who sells indigenous clothing material Aso oke told TechCabal that she has customers who are awaiting orders she can’t fulfill due to the circumstances. “Eyowo is the only platform where I take payments for Aso oke production. All the money I’ve taken for production (about N350,000) is stuck in the account and I’m unable to meet clients’ orders,” she said. Another small business owner told TechCabal, “After saving and searching for a suitable shop in Lagos for my business, I am unable to pay because of the issues Eyowo is experiencing.” Under posts on the company’s social media accounts, some customers have expressed similar resolutions to stop using the digital bank. Speaking to TechCabal, Sandra, a social media manager, said, “I am done with Eyowo. It has been one issue after another. My money is still there but I have moved on.” Several users, including business owners, appear to be more understanding and patient with Eyowo, expressing their gratitude for its efforts to keep them informed. Lilian, an online vendor, shared with TechCabal, “While it hasn’t been a smooth experience, Eyowo has been diligent in providing updates.” Another Eyowo user told TechCabal, “I have not been able to access my money but yesterday I got a call from their customer care promising they were going to settle it.” It still remains unclear why the CBN revoked the MFB license of the digital bank. According to the apex bank, the licenses of the 47 microfinance banks were revoked because they had either remained inactive, insolvent, failed to render returns, closed shop, or ceased to carry on the type of banking business for which they were licensed for more than six (6) months. When asked which of the aforementioned Eyowo is culpable of, the CBN refused to comment. Eyowo has not responded to questions about it either.
Read MoreUber Go is gaining traction in Lagos, but riders want more
Uber’s cheaper ride-hailing option, Uber Go appears to be providing relief to Lagos residents. But riders say it can’t displace the market leaders because of some shortcomings. If you live in Lagos and you don’t own a car like me, chances are your biggest challenge is commuting. With about 24 million people scrambling to navigate their way around one of the busiest cities in the world, the absence of a reliable transport system has presented a market opportunity for ride-hailing behemoths such as Uber and Bolt which offer ease of getting a ride and comfort for riders. But the fares can sometimes cost an arm and a leg, depending on who you ask. Enter Uber Go, a cheaper ride-hailing option, launched by market leader Uber. According to the company, it promises to be more affordable than UberX—its main ride-hailing service—with fuel-efficient hatchback vehicles—Suzuki Alto or S-Presso—that are presumed to be more affordable to maintain for drivers operating on the Uber app and offers 35% lower cost alternative for riders. Uber Go riders who spoke to TechCabal stated while they are sold on the ride-hailing platform because of its affordability, there are still challenges that need to be addressed. Cheap, but not for everyone Lola, a rider who asked to be identified by only her first name, said that although Uber Go has become her go-to ride-hailing app because of its affordable fares, she mostly uses it when she goes to certain neighbourhoods on the Island. She complains that the availability of Uber Go in select areas in the state is a challenge on its own. “I started using Uber Go while I was in Lagos law school to places on the Island and the fare is mostly less than N1,000. But the service isn’t available everywhere in Lagos unlike other ride-hailing options,” she told TechCabal over a call. She isn’t wrong. Uber Go is currently operational in select areas in Lagos including parts of the Island (excluding Ajah), Yaba, Surulere, and recently Ikeja. On Monday, I tried to book a ride on the Uber app from Ikorodu, but the Uber Go option was missing—an indication that the service isn’t available in my area. Reports have it that Uber is planning to extend Uber Go to other parts of Lagos. A viable alternative? Val Adetunji, another rider, said he finds Uber Go as an alternative, though he uses Bolt more often than other ride-hailing apps. “I’m not overly excited about it [Uber Go] because I already have a preference. But in terms of pricing, Uber Go is cheaper, so I am often tempted to use it,” he said. Bayo Bankole says he uses Uber Go whenever he is looking for the cheapest fares. He, however, expressed concerns about some of the features of the vehicles. “Because the cars are small, it isn’t advisable for people who would like to carry loads, say photographers going for a photo shoot. If you are just travelling light, then Uber Go is okay. If you need to travel with luggage, then you might want to consider other apps,” he said. Chidera Okpara, another rider shares a similar view, saying: “I think Uber Go is good for solo trips. Also because of the sizes of the cars, the drivers can always find a way to beat traffic.” But, for Bankole, while the speed limit on the Uber Go vehicles is important, it could pose a challenge in certain circumstances. “There was a day on Third Mainland Bridge that I was travelling with Uber Go, the road was free but the driver couldn’t go beyond their speed limit of around 80 kilometres per hour else the car starts beeping. So in a situation where there is a security concern at night, the vehicle won’t be able to drive faster,” he narrated to TechCabal. Over a ride, an Uber Go driver claimed that the model of the vehicles has particularly made working conditions difficult and hence their recent protest against Moove, the automobile financing startup that rents out the cars to drivers. “These cars aren’t really easy to maintain and they make our work hard. Even with this, we still have to deal with problems of the number of daily trips and daily remittances,” the driver said.
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