Nigeria’s stock market nears all-time high but market experts say Q3 results will be a litmus test
As Nigerian stocks close in on historic year high, many experts predict that Q3 returns may send the NGX back to earth. The All Share Index (ASI) of the Nigerian Exchange Group closed on a high of 65,669.29, on July 11, 2023, the highest recorded this year. It is 701.91 basis points shy of the single day all-time high for Nigerian stocks obtained on March 15, 2008. While profit-taking moves by investors will impact those numbers this week, many experts say that H1 reports–which are due this month–may present some shocks. Onome Ohwovoriole, an analyst with Money Africa, told TechCabal that he doesn’t see the likelihood of the index hitting the 67,000 mark in July. Ugochukwu Obi-Chukwu, the Founder of the publication, Nairametrics, also said, “There is fear that they may be a bubble somewhere. I thought that yesterday, we were going to cross the all time high. All time is around 66,000 basis points but we were very close to it. ASI dropped yesterday, it most likely will recede today. It looks like profit taking.” Market experts say Profits may decline soon While 160 companies are listed on the NGX, market experts say that the gains have been mainly driven by seven companies. Those seven companies also represent 66% of the market capitalization of the NGX. It leaves the exchange in a vulnerable place; all the recent gains of the past few weeks could easily be reversed. “I have been telling people to be careful. The economy is not so good. Inflation rate will go up, subsidy removal has been completed, prices are up, purchasing power is down, most companies would struggle. The feelers we get from them is that it is not easy, the Nairametrics founder said. “Profits will likely decline in the 3rd or 4th quarter. If that happens, how will that justify the valuations at the moment?” he asked. With H1 financial results on the way, there’s a sense that NGX’s good run may come to an end. “Strip out the financial services and oil and gas space, we could see ugly numbers from companies in the consumer goods space,” Ohwovoriole added.
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New M-Pesa transaction charges 2023
M-Pesa, a pioneering mobile money transfer service, keeps revolutionising the way people in Kenya conduct financial transactions. In this article, we will delve into the details of MPesa transaction charges, enabling you to make informed decisions when utilising their service. First, let’s see the transaction types that can warrant Mpesa charges. M-Pesa charges for sending money When sending money through M-Pesa, transaction charges may vary based on the amount being transferred. For example, in Kenya, for amounts between Ksh1 and Ksh49, the charge could be as low as FREE. In this article, we’ll outline the Mpesa charges according to every type of transaction. M-Pesa charges for withdrawing money Withdrawing money from your M-Pesa account can also incur charges. The withdrawal fee varies depending on the amount being withdrawn and the method chosen. Similar to sending money, withdrawal charges may differ, and it’s essential to confirm the rates applicable to your transaction. So keep reading. Other Mpesa charges In addition to sending and withdrawing money, M-Pesa provides various services with associated charges. These services include paying utility bills, purchasing airtime, and conducting merchant transactions. The charges for these transactions differ depending on the specific service and the country of operation. Below are comprehensive lists of transactions and M-Pesa-associated charges: 5 things to note using M-Pesa The highest account balance you can keep is Kshs.300,000 You cannot transact above Kshs.300,000 per day At a go, you cannot perform a transaction higher than Kshs.150,000 You must be ready to withdraw up to Kshs.50 if you must use an M-Pesa Agent. To initiate an M-PESA self-reversal, send your transaction confirmation to 456. Final thoughts on Mpesa charges M-Pesa has transformed the way people handle financial transactions in multiple countries. While the specific transaction charges may vary depending on the country and service, understanding the general principles of M-Pesa transaction fees empowers users to plan their financial transactions more effectively. Stay informed and take advantage of the convenience and affordability offered by M-Pesa.
Read MoreNigeria’s eNaira: High on blockchain, low on adoption
Nigeria’s master plan to make its eNaira mainstream has not recorded much success. From the unbanked to the banked, Nigerians are not adopting the country’s blockchain money. “I’ll pay you with eNaira” was my colleague’s way of teasing me about repaying a loan. If he were to pay into my eNaira wallet, I’d have virtually no way of spending the money. Most merchants in Nigeria don’t accept the country’s digital currency, and not many tech-savvy folks are convinced that this blockchain-based money has what it takes for mainstream adoption. Despite the investments of the central bank of Nigeria, Nigerians do not care much about the eNaira, Africa’s first central bank digital currency (CBDC). Mr Tobi Aremotobi, a Lagos-based digital finance expert, refers to the venture as “an exercise in futility”. Launched in October 2021, the eNaira became the world’s second public CBDC, after the Bahamas’ Sand Dollar project. Two months away from a second anniversary, the digital currency is still struggling with adoption. A recent IMF report showed that the average number of eNaira transactions is about 14,000 per week—only 1.5% of the number of wallets. This suggests that 98.5% of wallets, for any given week, have not been used even once. These numbers reflect a “disappointingly low adoption”. A use case, please? Many Nigerians have stressed that the eNaira lacks a use case compelling enough for them. According to the CBN’s master plan, the low transfer fees should drive eNaira adoption among Nigerians, especially among the youth demography who have demonstrated market potential for startups offering digital-first financial services. However, as it turns out, low-cost transfers take less priority than the form in which the money gets moved. Money can be either cash or digital. And when it’s digital, it can be either centralised fiat or decentralised cryptocurrency. The eNaira—like all CBDCs—doesn’t fit into either category. It introduces a new class of digital money that most Nigerians are only just discovering, right as they are being urged to adopt. The corollary effect, therefore, is hesitation. “I still can’t wrap my head around why we need another digital means of keeping money that takes away some banking perks,“ Aremotobi said. “If the eNaira remains a means to transfer value or pay my bills online, it is welcome to queue behind the one thousand options I already have.” Aremotobi’s point highlights a conversation crypto evangelists are familiar with: a monetary asset must have compelling use cases beyond being a value store. Perhaps, the CBN’s response to this line of thought would be in its three-point motivation for the eNaira. Through the digital currency, the apex bank wants to increase financial inclusion, reduce informality, and tap into Nigeria’s expanding remittance markets. The remittance play remains in the works, but the CBN has doubled down on its eNaira-powered financial inclusion agenda. That, however, is yet to demonstrate reasonable traction. ENaira versus mobile money According to the IMF report on the eNaira, “Nigeria has a large informal economy….Once the eNaira becomes more widespread and embedded into the economy, it may bring greater transparency to informal payments.” This position highlights the ambitions of the eNaira to simultaneously penetrate the informal market as it strives to power financial inclusion nationwide. Essentially, the eNaira wants to operate with established mobile money frameworks. To do this, the CBN can take either of two routes: leverage established mobile money networks to onboard CBDC users, or go all out to construct a retail access network. The former model will prevent the apex bank from providing retail banking services, and will require users to route their monies through their mobile money accounts to their eNaira wallets—a model that will come at an extra service cost. The bright side to this model, according to the IMF, is that it de-risks users’ mobile money balances—as the cash typically leaves the accounts of the financial institutions powering the mobile money services. This strategy, despite being the eNaira’s best shot at bagging some financial inclusion laurels, shows a lack of understanding of Nigeria’s mobile money market. Unlike Kenya’s MPESA or Senegal’s Wave, mobile money in Nigeria is not primarily used to hold balances. The country’s leading players—Paga and Opay—are extensively adopted for cash-in cash-out transactions. Payments and transfers come second, and are mostly completed by cash-full customers. Even the option to convert from cash to CBDC wallets is likely to face hesitation as such behaviour is not in line with prevalent consumer trends. So far, the CBN’s drive to put eNaira on the streets has churned out initiatives like USSD-powered eNaira operations and account tiers for the unbanked. As an added incentive to proselytise the digital currency adoption, thousands of CBN’s staff receive stipends into their eNaira wallets. The apex bank also claims that it has encouraged major supermarkets to adopt payments in eNaira, but big names like Shoprite, Spar, and Addide are yet to demonstrate nationwide adoption. From a financial inclusion lens, these moves by the CBN seem laudable, but the struggling adoption suggests that there’s something still amiss in the strategy mix. Nosa Oyegun, who leads the product team at Kuda, describes the eNaira’s mission to capture informal markets as an uphill struggle. “Given how it [the eNaira] was rolled out, it’s tall order now. it’ll be hard because of how it stumbled out the blocks. [The rollout] should have been USSD-driven if that was the goal. From a product perspective, Oyegun believes the eNaira has all the elements needed to be dominant. ”The government is behind the eNaira, there’s hardly any bigger moat than any competitor could ever have,” he said. Is trust the missing piece? The CBN and its eNaira have a trust deficit they must overcome. Actions such as the ban on crypto, closure of crypto-linked bank accounts, forex manipulations, and more recently, the naira redesign, have left a negative impression of the apex bank and its policies on most Nigerians. Tech and blockchain enthusiasts who were affected by the crypto crackdown scoff at the idea of a CBN-controlled
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Latest ways to check SASSA status 2023
After you apply for the SRD grant, the next thing you want to keep up with is your payment status. You can check your Sassa status in a variety of ways and get your R350 social grant payment. The most prominent ways include using WhatsApp or the SASSA online portal on your phone or PC to check the status of your SASSA SRD grant. If you are looking for how to apply for the SASSA SRD grant, then read this. 1. Starting the status verification You must first go to the SASSA website to complete this step. Visit the official SASSA website at https://www.sassa-status.co.za or https://srd.sassa.gov.za/sc19/status by launching your favourite web browser. Locate the gateway for checking status tagged “Check Status”. Follow the instructions below when you’re on the portal: Provide the necessary details, including your phone number and ID number. Please be certain the data you enter is accurate. Click the “Check Now” or “Submit” button once you have verified the information you have entered and are certain it is accurate. See your SASSA status. The site will show your SRD SASSA status after you have submitted your information. The status of your application, the due date, and any further instructions could all be included in this. 2. Verify your SASSA status via WhatsApp There is an option to check your SRD grant status in case you are unable to use the SASSA website gateway for some reason. And this is through the mobile messaging service – WhatsApp. Simply send the word “Sassa” by SMS to the Sassa WhatsApp service’s 082 046 8553 number. When prompted, simply enter “Status” as your response. If you have a reference number, answer “Yes” to the following question, which should come next. Following that, enter your cell phone number, which you also gave in your grant application, and provide the reference number. Final thoughts on verifying your SASSA status In order to track the status of your application and ensure that you get the necessary financial aid, it is essential to check your SRD SASSA status often. You may quickly check your SRD SASSA status online or via WhatsApp by following the instructions provided in this article.
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New updates to SASSA payment collections 2023
There are some developments in SASSA payments that you may not yet know about. This comprehensive update highlights the recent changes and enhancements to the SASSA payment and how you can navigate them. Post office branches (SAPO/Post Bank) no longer disburse SASSA payments It is no longer possible to use the Bank Mobile Money Transfer (cash send option), this method was stopped due to potential security concerns. You now get your SASSA payments via a bank account. SASSA payment via bank account In addition to being the most convenient way to get your grant money, having it deposited directly into your bank account ensures you never have to wait in queue at the post office again. Per the terms of the award, the monthly payments will be made directly into the recipient’s bank account. Also, development implies that the person whose name appears on the bank account or mobile phone number used to collect the Covid-19 R350 grant funds must be the same person whose application was approved. When you run a SASSA status check, any incorrect information will be highlighted. Log in to the site and make the necessary changes to your bank account information if you believe it is wrong. SASSA payment collection greenlight You won’t be able to get your hands on the grant money until you get an SMS message confirming your payment approval. Now you should know the SRD Grant payment dates for this month after you have checked the SASSA payment status: SASSA payment dates for July 2023: Older Person’s Grants – Started Tuesday 4th July 2023 Disability Grants – Started Wednesday 5th July 2023 All Other SASSA Grants (inc Children’s Grant) – Started Thursday 6th July 2023 SASSA card and final thoughts As part of the above updates, SASSA also made it known that the SASSA Postbank Gold Cards that had previously expired would now be valid until the end of 2023. If you have a SASSA card, you can use it at stores like Pick n Pay to pay for groceries or get cash. With it, cash can be withdrawn from ATMs and retail locations using the MasterCard SASSA card issued to all recipients of SASSA subsidies.
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👨🏿🚀TechCabal Daily – The naira payout
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday We’re taking suggestions on how to make our Entering Tech Shorts better. Who should we feature next? What topics should we cover? Please leave us a review and let us know what you think. In today’s edition CBN approves naira payout for diaspora remittances Egypt set to launch NExSat-1 satellite Nigeria and Google to delist loan apps Apple updates its App Store prices in Nigeria, Egypt and Tanzania The World Wide Web3 Event: The Moonshot Conference Opportunities Economy CBN approves naira payout for diaspora remittances Image source: Zikoko Memes Nigerians will soon be able to send money to beneficiaries abroad in naira. Yesterday, the country’s apex bank announced that it had approved the payment of naira to beneficiaries of diaspora remittances. What it means: This means that banks and International Money Transfer Operators (IMTOs) can now pay their recipients in naira, ending a three-year ban. Part of the CBN’s circular said, “The Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers.” In December 2020, the CBN banned banks and IMTOs from paying recipients in Naira. The policy also stated that only banks could transfer funds onward to recipients. In theory, the CBN policy ended the business model of many digital remittance companies that allowed Nigerians abroad to send money directly to the Naira accounts of recipients. This recent policy removal is another step towards loosening the strict control the CBN has exercised over FX rates in the last five years. It’s also great for customers who can now choose between receiving their funds in foreign currency, e-naira and the Naira. Customers who choose to receive their funds in Naira will be paid using the Investors & Exporters Window rate on the day of the transaction. Secure payments with Monnify Monnify has simplified how businesses accept payments to enable growth. We are trusted by Piggyvest, Buypower, Wakanow, Fairmoney, Cowrywise, and over 10,000 Nigerian businesses. Get your Monnify account today here. Space Egypt set to launch NExSat-1 satellite Image source: YungNollywood Egypt is leading the way in Africa’s space exploration. The Egyptian Space Agency (EgSA) has announced plans to launch the NExSat-1 satellite before the end of this year from China, after successfully completing all satellite launch-related tests in Germany. The satellite is part of the Egyptian government’s strategic initiatives to develop satellite technology. About NExSat-1: NExSat-1 is a 65kg remote sensing earth observation microsatellite that was built by the Egyptian National Authority for Remote Sensing and Space Sciences (NARSS) in collaboration with Berlin Space Technologies (BST). The satellite is said to be 45% locally engineered, and according to EgSA CEO, Sherif Sedky, NExSat-1 has a six-month lifespan and will be used for urban planning. There’s more: EgSA’s planned launch of NExSat-1 will follow the launch of MisrSat-2, another remote sensing satellite In October, also from China. Both satellites were originally scheduled to be launched last year. Zoom out: These consecutive missions represent significant achievements for the EgSA, showcasing its commitment to advancing its presence in space exploration and satellite-based initiatives, strengthening its position in the field. Consumer tech Nigeria and Google to delist invasive loan apps Image source: GIPHY Nigeria’s Federal Competition and Consumer Protection Commission (FCCPC) is taking some serious action to protect customers from loan application bullies. Per Techpoint, they’re even teaming up with Google to permanently wipe out these troublesome apps from their app store. Why are they doing this? Well, it’s all because of the relentless harassment and defamation that Nigerians have been enduring at the hands of these digital lenders. Some of these loan apps have stooped to unimaginable lows by gaining access to borrowers’ private and intimate pictures. Some even send messages to the borrower’s friends, threatening to expose these personal images unless the loan is repaid. The FCCPC is stepping up to the plate to ensure that Nigerians can breathe easy and borrow without fear. How so? Earlier in the year, the FCCPC mandated loan apps to register with it and approved about 173 apps to operate in the country. In April 2023, the Joint Task Force (JTF) and the FCCPC collaborated to develop the Limited Interim Regulatory/Registration Framework and Guidelines for Digital Lending 2022. This collaboration aims to establish clear rules and guidelines to govern the industry, protect users, and hold loan apps to higher standards. Even the tech giant, Google, has jumped on board to combat loan app harassment. They announced months ago that loan apps would not be allowed on their app store without regulatory approval. It’s a strong stance that can ensure only compliant apps make their way onto the platform. As of May 31, loan apps on the Play Store reportedly lost their ability to access users’ contacts or photos, an added layer of protection for users. However, despite these efforts, the FCCPC has uncovered a troubling fact: many of the loan apps causing distress to users are not found on Google. It’s a sobering realisation that highlights the need for users to be vigilant and exercise caution. The FCCPC advises users to steer clear of apps downloaded using apk files or those that operate on platforms like WhatsApp, as these are often the ones employing such invasive measures. Zooming out: Loan app harassment is a growing epidemic affecting other nations as well. Take Kenya, for instance, where the government is also cracking down on non-traditional loan providers who misuse user data. They have introduced new regulations that require loan companies to re-register as legal entities. So far, only 32 loan apps have received approval, indicating the scale of the challenge. 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Read MoreExclusive: CBN approves Naira payout for diaspora remittance
Nigeria’s Central Bank has now approved Naira payouts for diaspora remittance, ending a ban that had been in place since December 2020 In a circular dated July 10, 2023, Nigeria’s Central Bank approved the payment of the Naira to beneficiaries of diaspora remittance. The circular means that banks and International Money Transfer Operators (IMTOs) can now pay their recipients in Naira, ending a three-year ban. Part of the CBN’s circular said, “The Central Bank of Nigeria hereby announces Naira as a payout option for receipts of proceeds of International Money Transfers.” In December 2020, the CBN banned banks and IMTOs from paying recipients in Naira. The policy also stated that only banks could transfer funds onward to recipients. In theory, the CBN policy ended the business model of many digital remittance companies that allowed Nigerians abroad to send money directly to the Naira accounts of recipients. Months after the “Naira payment ban,” the CBN introduced the Naira for Dollar Scheme in March 2021. These policies were part of Godwin Emefiele’s attempts to encourage diaspora remittances to move through formal channels and boost FX liquidity. The bank hoped to squeeze unlicensed IMTOs out of business by insisting on paying recipients foreign currency. But given the popularity of digital remittance apps, which allow customers to receive money in Naira, it is doubtful that these policies succeeded. This recent policy removal is another step towards loosening the strict control the CBN has exercised over FX rates in the last five years. It’s also great for customers who can now choose between receiving their funds in foreign currency, eNaira and the Naira. Customers who choose to receive their funds in Naira will be paid using the Investors & Exporters Window rate on the day of the transaction. The CBN’s circular also updated the list of registered IMTOs in Nigeria. In February 2021, the CBN listed 47 approved IMTOs, but this week’s circular expanded the list to 62 companies. Some newly approved IMTOs include Comet Trading, CSL Pay Limited, Direkt Wire UK Limited, Fiem Group LLC DBA Ping Express, Lycamoney financial services limited, and SimbaPay Limited.
Read MoreMaandamano: Kenyans are using Twitter to protest a cost of living crisis
Kenyans are using the hashtag Maandamano on Twitter to protest the high cost of living. Offline, the protests have caused disruptions in public transport and businesses. For most Kenyans, Wednesday, July 12, was the mother of all protests, also referred to as Maandamano, over the towering cost of living crisis. The protests hope to stop the Kenya Kwanza government’s planned tax increase. Many groups, including the opposition coalition, Azimio La Umoja, public service vehicles (PSVs), and taxi association of Kenya, braced themselves for nationwide demonstrations today. The Star reported that the cost of living in Kenya went up by 13.4% in March 2023 alone. The most affected essential services are housing, transport, and electricity. There are polarised views on the #Maandamano. Supporters of the protests believe they are a genuine cry for the government to think about the “common mwananchi” struggling to make ends meet in the current economy. Kenya’s opposition leader, Raila Odinga, has been vocal about issues such as the high cost of living, false promises by the Kenyan government, unreasonable taxation, and little effort to fight corruption that has crippled the country. Most of his followers agree with him. Other Twitter users have dismissed the protests as a strategy by the opposition to stall any efforts by the Kenya Kwanza government to transform the country for the better. #Maandamano’s days have become synonymous with violence and destruction of property across the country as law enforcement officers take on the protestors. People have also raised concerns over the disruptions resulting from the protests. For instance, public transport stopped, which was a major challenge for people going to work. Most businesses were also closed due to fear of vandalism. What are Kenyans saying about the protests? Twitter has become a popular space where Kenyans share their encounters with the #Maandamano. One video shared widely on the platform is that of Matatu operators playing a game at the Nanyuki main stage where normal operations stopped. Heavy police vigilance nationwide did not prevent protestors from turning up for the habitual #Maandamano. Some places, such as Kangemi, Machakos, Mlolongo, and Nakuru, have been turned into a battlefield between stone-wielding protestors and armed police officers. This is Nakuru, the capital city of Rift Valley and president William Ruto’s bedroom #Maandamano #Maandamanowednesday pic.twitter.com/DalmYjWM5D — Karen Wanjiku HSC (@WanjikuHSC) July 12, 2023 As heavy as the issue is, other Twitter users have found an opportunity to joke about the #Maandamano. The users see the protests as a mid-week holiday or an early weekend break from their busy work life. Nairobi CBD is very quiet this morning. It is indeed a National Holiday#Maandamano#Tumechoka#Maandamanowednesday pic.twitter.com/NwzaI0ascr — Lord Tristan (@tristan_dmartel) July 12, 2023 Other users have expressed disappointment with the low police turn-up in their respective areas. One user even tagged the National Police Service account and requested them to send units to Oyugis, where protestors were bored. Leo oyugis polisi hawajakuja.Protesters wameboeka ajab Send units! @NPSOfficial_KE — Jakonyango (@Ja_Konyango) July 12, 2023 Are the protests making sense? Why are Kenyans angry? Kenyans are angry and frustrated by their government. The cost of fuel, food, and other crucial goods has exponentially increased in the last few years. Elected legislators have failed to address their grievances. As a result, many Kenyans have decided to express their frustrations on the streets. Opinions from public figures? Many public figures have also given their take on the #Maandamano. A video of the popular businessman Jimi Wanjigi has been shared supporting the protests to reduce the cost of living. Jimmy Wanjigi is in full support of Maandamano. It’s can’t get any sweeter #Maandamano #Maandamanowednesday pic.twitter.com/sSMbusZciN — Karen Wanjiku HSC (@WanjikuHSC) July 12, 2023 Kileleshwa MCA, Rober Alai, has also shared a series of tweets to support the #Maandamano and urged his followers to turn up for the protests. However, public figures affiliated with the Kenya Kwanza government have downplayed the protests, encouraged people to continue their daily hustle, and shun the demonstrations. Nairobi CBD bustling with beehive of activities as Kenyans continue with their daily hustle to fix the economy. Kisumu & Migori is the only place that demos are ongoing. I pray for Luo Nation that God shall receive salvation from shackles of Odingaism that has a signature of… pic.twitter.com/wSa9XUTnhx — Senator Kiprotich Arap Cherargei (@scherargei) July 12, 2023 Twitter has become a hub for Kenyans to express their opinions on various developments in the country. One should wonder if it is replacing traditional media, as locals use the platform to air their grievances widely.
Read MoreA bizarre security breach has scuttled crowdfunding efforts for Zimbabwe’s ChatGPT alternative
This story began as a feature article on a crowdfunding drive by AfricAI, the AI startup that developed chatbots, ZivAI and DanAI. Instead, it became an investigation into hacking, fraud, and industrial espionage allegations. While AI is a global hot topic, Zimbabwe has been locked out of a big part of the conversation. Sanctions from the United States and the European Union mean that ChatGPT, one of the most popular AI tools, is banned in Zimbabwe. But gaps like this create opportunities for entrepreneurs to develop alternatives. The two popular alternatives for Zimbabweans are ZivAI and DanAI–both created by a company called AfricAI. The chatbots have won the company media coverage, but in a bizarre turn of events, AfricaAI is now facing allegations of fraud. The allegations are connected to a crowdfunding drive in which the company raised over $24,000 of its $50,000 target in three weeks. Per the crowdfunding MOU, donors are “entitled to receive a proportional portion of 10% of the Company based on their contribution amount, upon Series [A] raise.” AfricAI suffers breach But on Friday, July 7th, AfricaAI shared in a press release that its fundraising page had been breached. Part of the statement read, “We regret to inform you of a recent security breach that occurred on our funding page. On July 7, 2023, an unauthorised individual gained access to our Superbase-hosted backer database. We have taken immediate action to address the situation and strengthen our security measures to prevent any such incidents in the future.” The company also claimed that a certain Michael Dera was behind the “hack”, claiming that he “exploited a vulnerability that allowed unauthorised access to our backer database.” Regardless, AfricaAI claimed that the funds donated were not lost. Dera disputes AfricAI’s characterisation of events and instead said that he only highlighted the company’s security deficiencies. “If you opened the page, you noticed that apart from sending blank transactions, they were also sending people’s personal details, including emails and phone numbers, without any sort of security. I also noticed that because everything was exposed like that, I could also do a post request to their website as well,” Dera told TechCabal on a call. Dera inflated the website’s figures to millions of dollars to show the vulnerabilities, sharing the process on social media. He said AfricAI was not truthful about the funds they had raised and the number of backers. “Hacker” accuses AfricAI of dishonesty Dera says his motivation was the company’s dishonesty about the funds they had raised and the number of backers. He shared a payload of the transactions he captured with TechCabal and insinuated that some donations were fake. Dera bases his claims on the manual nature in which most donations were added to the funding platform. AfricAI’s founder, Kuda Musasiwa, agreed that the transactions were added manually but only because some donors had sent funds via bank account transactions instead of the funding page. He also claims that those bank transactions were also recorded on Stripe. Musasiwa shared the transactions on his Stripe dashboard with TechCabal, which matched the payment IDs on the payload shared by Dera which TechCabal had asked to corroborate. Musasiwa’s rebuttal opens the possibility that Dera’s original claims may be false. While Dera still sticks to his judgment until he sees Musasiwa’s Stripe dashboard, he claims he will apologise if he’s proven wrong. “If I am proven to be lying, I will come out and apologise. I have nothing against being wrong.” If Dera accepts that his claims are wrong, the reputational damage to AfricAI would already have been done. How will AfricAI move forward? According to Musasiwa, the actions and accusations by Dera have caused indelible damage to AfricAI’s reputation and its ability to more funds. He blames Dera’s actions on jealousy and “industrial espionage” as Dera works for a competing software development firm. “Since the incident last week, we have seen a major slowdown in funding from even our most active backers. I would be the first to admit that we could have done better regarding security on the funding page but that does not give [Dera] the right to do what he did. He could have just reached out to us to correct the vulnerabilities but he chose to destroy our reputation instead,” he said. Moving ahead, ZivAI intends to beef up its security on all platforms, including the funding page, and also pursue legal action against Dera, a challenging route for a fledgling startup still raising funds to do the most basic functionalities like paying for equipment and paying employees. On the threats of legal action against himself, Dera stated that apart from social media “threats” from Musasiwa and his spouse, some of which he shared with TechCabal, he has not had any communications from Musasiwa’s legal team. “As far as I’m concerned, if I hacked their data, they’re supposed to report the incident to the UK Information Commissioner’s Office because that’s where their company is registered. GDRP requires that incidents like this be reported to them within 72 hours. Otherwise, there’ll be a financial penalty for that. The fact they have not done so speaks volumes.” When TechCabal asked Musasiwa what challenges they faced in the crowdfunding process in an earlier interview, he confidently said none, before adding that getting investors to believe in the project’s validity was the only challenge. Never would he have thought that an incident like this could derail their fundraising efforts. “Part of building tech products is learning from your mistakes literally every day. This has been a very unfortunate and costly incident but we continue on our mission to try build our platforms for the benefit of our users,” he concluded.
Read MoreOmnisient CEO speaks on being recognised as ‘tech pioneer’ by World Economic Forum
South African fintech startup Omnisient is one of seven African startups to be recognised as a tech pioneer by the World Economic Forum. South African data analytics fintech Omnisient has been recognised as a “tech pioneer” by the World Economic Forum. Launched in 2000, the Technology Pioneer community is composed of early-stage companies from around the world that are involved in the design, development, and deployment of new technologies and innovations and are poised to have a significant impact on business and society. Omnisient has developed a privacy-preserving process for banks to access new sources of consumer data for determining credit worthiness of individuals with no credit history. The startup claims that the process protects consumer privacy and removes the risks and challenges commonly associated with sharing consumer information. TechCabal caught up with Omnisient CEO Jon Jacobson to learn more about their business model and how they plan to leverage the recognition by the WEF to scale their business. Please tell us about Omnisient and the problem you are trying to solve. Jon Jacobson: The problem is that when you get privacy laws, what actually happens is it’s really good for people and for the consumer but it actually has an indirect impact on businesses trying to get access to data. We have to remember that data is the new oil and it is fundamental to most processes from customer acquisition, lead generation, etc. So Omnisient basically helps businesses utilise data by also abiding with the requisite privacy laws. It is a privacy-preserving data collaboration platform that allows businesses to collaborate on data insights on consumer behaviour and preferences. It so happens that by solving problems with privacy in mind, you can really solve some big problems. What challenges have you faced in trying to solve this problem in your core markets? JJ: The challenges are typical when building a new tech startup business from scratch. I’m a software engineer and I have been a programmer for most of my life so I’m cognisant of some of the problems a tech startup faces. The first one was getting funding to build our solution. Before getting seed funding from Investec, Nedbank, and a third investor, it was very tough. Another challenge, I would say, is getting customers to accept and use our platform. When you bring a new technology into the market, especially as a B2B business, it takes education for people to understand it which requires a substantial amount invested in marketing efforts. I think we addressed that challenge quite successfully because eight South African banks now use our platform. Our other customers include large retailers and insurance companies. Omnisient raised $1.2 million in November 2022. How has this funding helped to further the business’ mandate? JJ: It has been fundamental because when you service large organisations like banks, telcos, chain retailers, etc, you have to have good people on board, and good people don’t come cheap. So with the funding, we’ve built our team, all the tech and everything else. The funding has also helped us a lot with regard to research and development as we build out our product and also helped us to build very strong sales, marketing and business development teams. At this stage, we are doing $2 million in annual revenue runrate (ARR) in dollars and that kind of puts us in the Series A range and that’s actually what we’re going to be doing soon, going into the market to raise our Series A. Omniscient was recently recognised by the WEF as a “tech pioneer”. Please tell us how that came about. JJ: I would say that came about because of the continual effort that we put into our work. You might be doing something for two years and then you get recognised at the end of the two years, but you’ve already been doing it for a while. I think the difference is with us, some of the things we’ve been working on, have really come to fruition in the last year especially the managing credit risk side of the business. In March, we were awarded a significant award by the African Banking Summit in Nairobi for the most innovative financial inclusion technology. I think that put us on the map. One of the major things that the WEF focuses on is solving the financial, the financial inclusion problem. In South Africa, we’ve shown that we can identify 8 million of those people and make them credit worthy which is 16% of the population. I think just that work put us in the scope of the recognition by the WEF. What’s next for Omnisient? We’ve been on a journey to expand our business and to grow into new markets and this recognition by the WEF obviously helps. I’m actually at the airport on my way to China where I’ve got some super exciting meetings set up. So the recognition gives us access to very valuable networks and that’s vital to us. * This interview has been edited for style and clarity.
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