Senegal shuts down mobile internet two days after postponing Presidential elections
Senegal temporarily suspended mobile internet on Monday morning, upping the tension in a country often described as one of the continent’s most stable democracies. Monday’s internet suspension, days after President Macky Sall postponed Presidential elections slated for February 25, is the third internet suspension in Senegal in the last nine months. The government blamed ‘’the dissemination of several hateful and subversive messages relayed on social networks shutdown’’ for the shutdown following the same approach as the earlier shutdowns. Protests erupted on Sunday after President Macky Sall announced on Saturday that Presidential elections would be postponed for six months. ‘’Senegal’s government has again taken the abusive decision to shut down mobile Internet across the country. The implications are wide-ranging. People underestimate how many things in our daily lives are dependent on mobile internet,’’ Tidjane Deme, general partner at Partech, shared on X. Political uncertainty in Senegal has worsened since June 2023 when Ousmane Sonko, a popular opposition leader, was arrested. Since his arrest, at least two prominent opposition candidates have been arrested, while others have been attacked by the police. Residents in Dakar have taken to social media to share that they have had to use WiFi to access the internet. The Senegalese government arrested five people for selling Starlink terminals without the required licence or authorisation in August. According to some estimates, Senegal lost $300,000 per hour due to the June shutdown. Sub-Saharan African countries lost $1.74 billion to government-induced shutdowns in 2023, according to a report by Top1vpn. Since the 2011 Arab Spring, internet shutdowns have become a frequent way African governments have sought to establish control. At least ten countries had internet shutdowns in Africa last year.
Read MoreNigeria’s Central Bank slashes forex backlog estimate by $4.8 billion
After months of speculation around Nigeria’s FX backlog, Nigeria’s Central Bank Chief has said the country’s “valid forex backlogs” stand at $2.2 billion. The CBN arrived at the figure after subjecting the initial claims of the $7 billion to a long audit. On Monday, Yemi Cardoso, the Central Bank Governor, told Arise TV that the $7 billion figure was audited by Deloitte and around $2.4 billion in “invalid claims” were discovered. According to Cardoso, some infractions include not having valid import documents, claims from entities that didn’t exist, beneficiaries and account parties who got more foreign exchange than they asked for and some who did not ask for forex but got it. “We are not paying these claims if it is not a validly constituted request,” Cardoso said. And while Cardoso claimed the arrears owed to airlines had been paid, the airline association IATA said there was still $700 million unpaid. “What remains is about $ 2.2 billion to be settled, and I am confident. We would clear all of that very shortly,” he added. Last week, the CBN issued new policy directions to stabilise the Naira after a week of volatility. The apex bank aims to unify prices and close the disparity between the official FX window and the parallel market.
Read MoreMultiChoice expectedly turns down $2.5 billion offer from Canal+
MultiChoice, the pan-African broadcaster with a market capitalisation of $2.15 billion, has expectedly turned down a non-binding acquisition offer by Canal+, the Vivendi-owned pay-TV company. MultiChoice told shareholders it would not entertain the offer of R105 per share, a 40% premium on MultiChoice’s then-share price. “After careful consideration, the Board has concluded that the proposed offer price of R105 in cash significantly undervalues the Group and its future prospects,” MultiChoice said in a statement to the Johannesburg Stock Exchange. Canal+ tests the waters with a bid to buy MultiChoice It is unlikely that Canal+ will consider the rejection as a sign to end its pursuit of MultiChoice, having begun increasing its stake in the company since 2020. Additionally, Vivendi, Canal+ parent company, is familiar with the complexities and intricacies of hostile takeovers, having engineered at least two similar takeovers. The French broadcaster continues to mop up MultiChoice shares as it pushes its way to the 35% limit, according to a regulatory filing seen by TechCabal. MultiChoice share price has plunged by almost 50% in the last six months Per South African law, a stake of more than 35% would require Canal+ to make a mandatory offer to MultiChoice shareholders. “MultiChoice has also requested the [regulator] to make a ruling as to whether a mandatory offer must be made to all holders of ordinary shares in [MultiChoice],” another filing made on Monday morning said. “A further announcement will be released if there are further developments.”
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African startups raised $83 million in January 2024
African startups got off to a sluggish start in 2024, raising just $83 million across 31 disclosed deals in January, according to data from Africa: The Big Deal. This marks a steep decline from the $545.1 million raised in 20 deals during the same month in 2023, representing an 84.8% year-on-year drop. The January 2023 fundraising activity was, however, heavily influenced by a single large deal: the $443 million acquisition of AI company Instadeep by BioNTech. Excluding this outlier, African startups in January 2023 raised roughly $99.1 million, bringing the YoY decline to a more moderate 16.2%. This suggests that the underlying growth of the African tech ecosystem remains relatively stable, despite the headline-grabbing funding slowdown. Image source: TechCabal/Timi Odueso The three sectors with the highest funding are agritech with $26.3 million in raises, cleantech with $18.1 million, and healthtech with a modest $13.5 million. Various sectors—most notably fintech—within the ecosystem have observed a decline in funding compared to the sums raised in previous years. With a global funding winter in tow, investors are increasingly focusing on startups with proven track records of traction and growth, leaving fewer resources available for testing the waters. Three of the four logistics startups—Bosta, FriendlyM and Roboost—who raised funds in January 2024 were from North Africa, or Egypt specifically. Last year, logistics startups received a fair bit of interest as the fourth sector with the highest funding at $205 million. While only a fraction of this funding came from North Africa, Egypt’s logistics sector may see increased interest this year with the growing success of mobility startup Swvl which recorded its first-ever net profit of $2.1 million last year after recording $161 million in losses in 2022. Image source: TechCabal/Timi Odueso 2. Investments: EIB makes its third African injection, and Accelerate Africa and T-vencubator debuts While funding is pretty much the same since last year, Africa’s tech ecosystem investment space saw both new and old faces in January 2024. Early on in the month, the European Investment Bank (EIB) made its third investment in an Africa-focused venture. This time, Seedstars was the lucky choice with a $30 million check. The venture says it will distribute 50% of the funds across francophone Africa with selected startups set to receive between $250,000 and $2 million. Seedstars also received an additional $10.5 million from the African Development Bank (AfDB) later in the month. On the strategic side, two-time unicorn founder Iyin Aboyeji and investment powerhouse Mia von Koschitzky-Kimani teamed up to launch what media houses are now terming “The YC of Africa”. The venture is Accelerate Africa, a Nigeria-based accelerator which will provide 10 pre-seed and seed-stage startups with business and product development expertise with the aim of pitching to investors. Finally, Egypt saw the launch of a VC Firm-Incubator hybrid with T-vencubator, a firm that wants to invest in “exceptional talents shaping Egypt’s future”. 3. M&As: Access Holdings closes three acquisitions in one month Last month, the parent company of Nigeria-based commercial bank, Access Bank, taught startups a lesson on acquisitions. Access Holdings completed three acquisitions within the space of a month. In the second week of January, it announced that it had completed the acquisition of Zambia’s Atlas Mara more than two years after it announced the merger. Less than a week later, it completed the acquisition of insurance brokerage company Megatech Insurance. One of its most significant acquisitions was ARM Pensions, Nigeria’s second-largest pension fund manager, which received regulatory approvals just days before the end of the month. These acquisitions, long anticipated, underscore Access’ strategic expansion across the continent. 4. Pivots: Kippa and Zilla jump ship Ecosystem players who contributed to our 2023 Wrapped article noted that 2024 will see more startups move towards better business models. We saw a bit of that in January with two startups pivoting. Zilla, which launched as a buy-now-pay-later product in 2021, changed gears and pivoted to cross-border payments last month. Sources close to the company said it faced challenges with helping customers understand the BNPL model. Next, Kippa, which faced a $31,000 internal fraud case, announced that it would move from fintech to edtech. The company, last year, moved its agency banking product KippaPay to another startup, and now, it’s launched an edtech platform that will allow users to create courses using AI. 5. Shutdowns: Cova shuts down, and Woven knits itself back together While some startups pivoted, some wound their activities up. In a January 24 email to users, asset management platform Cova announced that it would cease operations by February 10. While Cova’s management is yet to give specific reasons for its shutdown, citing only “several factors” in its email, CEO Oluyomi Ojo had mentioned in a 2021 interview that users were still adapting to the concept of a startup that helps users transfer asset ownership in the event of their death. The startup raised $800,000 during its run. Another startup, Woven Finance, was also in the news for shutting down. The Nigeria-based startup sent an email announcing its shutdown plans, but later rescinded the claim, stating that the email was sent in error. 6. Stepdowns: Peter Njonjo, Ashkay Grover, Tosin Osibodu, and Duke Ekezie, step down As we waved goodbye to startups in January, some CEOs also bid farewell to their companies. Cellulant CEO Ashkay Grover who joined the group in 2021 stepped down to focus on personal matters. The company had reportedly effected a third round of layoffs just one month before Grover’s exit. Kenyan agritech Twiga Foods also parted ways with its co-founder and 10-year CEO Peter Njonjo who stepped down from the company’s board. TechCabal’s investigation indicates that Njonjo was forced out by investors who bailed the company out of a lawsuit with a $35 million investment. Tosin Osibodu, co-founder and CEO of Chaka also exited the company to focus on a new venture, Alpaca. Chaka was acquired by Risevest last year, and Osibodu left the company in the capable hands of Risevest CEO Eke Urum. Finally, Kippa’s co-founder Duke
Read MoreSafaricom stops M-PESA transfers to unregistered users
Safaricom, Kenya’s leading telco, will no longer allow customers to send money to unregistered individuals on M-PESA, its mobile money service. The move will also affect unregistered mobile money users on Airtel Money and T-Kash. T-Kash is a mobile money product run by Kenya’s third-largest operator, Telkom. Per a statement shared by the carrier on its X account, M-PESA users “will no longer be able to send and receive money across different mobile money providers such as Airtel and T-Kash.” Before now, M-PESA allowed customers to send money to unregistered Safaricom customers. Customers without registered M-PESA accounts are considered unregistered. While M-PESA did not explain the reason for today’s rule change, one theory is that it is linked to security. Unregistered SIM cards allow the movement of mobile money that are sometimes untraceable. In the last three years, state agencies have attempted to address M-PESA’s dominance in Kenya. Mobile money subscriptions, which stood at 38.1 million in September 2023, are primarily led by Safaricom’s M-PESA. In Q2 2023, M-PESA’s market share was at 96.5%, followed by Airtel Money at 3.4%, and T-Kash at 0.1%. Amid calls to declare M-PESA a dominant player in the market, the Central Bank of Kenya (CBK) called for mobile money interoperability; besides sending money across the platforms, merchant and paybill services were also made interoperable in 2022. However, the changes have not accelerated the adoption of Airtel Money and T-Kash, likely because of their small agency network (where customers go to withdraw and deposit cash). M-PESA has also been struggling with inconsistent service availability over the last few days amid customer complaints across multiple social media platforms. The telco has not been upfront about the cause of the outages, a departure from its customer-first policy that made it an attractive operator to millions of Kenyans.
Read MoreExclusive: Fintech giant Flutterwave secures release of $3 million in Kenya
A Kenyan high court has unfrozen $3 million belonging to fintech giant Flutterwave and two of its associates, ending a legal wrangle that began in 2022. The funds continued to be withheld despite a court order to release them in November 2023. “We can confirm that the accounts have been unfrozen,” a Flutterwave spokesperson told TechCabal. In July 2023, Kenya’s Assets Recovery Agency sought court approval to withdraw money laundering charges against the fintech startup, but the judge denied the request, citing the ARA’s failure to provide evidence for dropping the proceedings. The charge was eventually withdrawn in November 2023, which meant that Flutterwave would regain access to the remaining $3 million of its funds. “The ARA has officially withdrawn its suit against us, marking an end to the scrutiny of Flutterwave Payments Technology Limited Kenya’s bank accounts,” Flutterwave said in a statement in November 2023. Nigeria’s Central Bank bars banks from international money transfer operations The Asset Recovery Agency (ARA) initially froze over $55 million of funds belonging to Flutterwave in 2022 following an allegation that the funds were proceeds of fraud and money laundering. The first case was withdrawn in March 2023, after which Flutterwave recovered the majority of the funds amounting to $52.5 million. The rest of the funds were not immediately released, as the Asset Recovery Agency (ARA) opposed unfreezing them at the time. In January 2024, High Court Judge Nixon Sifuna, assigned to the case, criticized the ARA for requesting to withdraw a second case. According to the ARA, it found Flutterwave innocent of any fraud in this case, yet it withdrew it and requested that it continue to hold the funds. “Such a litigation facade or decoy is inappropriate, an abuse of the court process, and an attempt at squandering the scarce judicial time,” Judge Sifuna said. With the funds in the company’s hands, Flutterwave’s next business move will be seeking a payments and remittance license in Kenya. Unlike other licensed payment companies, Flutterwave is not legally allowed to collect or settle payments in Kenya. It only has partnerships with local and international companies operating in Kenya, including Uber. Kenya is one of Flutterwave’s primary markets, alongside Nigeria, South Africa, and Egypt. The company has also set up strategic offices in Rwanda, Ghana, Cameroon, Cote d’Ivoire, and Senegal. *This is a developing story
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2024 SASSA SRD Grant Appeal process
Securing the Social Relief of Distress (SRD) grant is generally a straightforward process. However, recognising the possibility of application rejection is vital. In the event of a grant denial, understanding the right to contest the decision through the SASSA Appeal Process becomes essential. Common reasons your SASSA application may be denied and how to go about the appeal 1. Exceeding income limits The challenge here is that the SASSA grants are intended for those with constrained income. So if you’re deemed to earn more considering your account statement, you may be denied. Resolution: Present updated financial documents, explaining any temporary income spikes and how they do not directly affect the quality of your living. 2. Inaccurate application details Errors or inconsistencies in application details can cause denial to your SASSA SRD application and have you needing to appeal. Resolution: Verify your data and submit correct supporting documents, such as IDs and proof of residence. 3. Failure to meet eligibility criteria Falling short of citizenship, residency, or age criteria can cause rejection for your SASSA SRD Resolution: Scrutinize eligibility criteria, underscore compliance in the appeal, and provide pertinent documentation. 4. Multiplicity of applications: Submission of multiple applications leading to potential denial. Resolution: Clarify inadvertent duplicates, emphasizing the legitimacy of the claim. 5. Incomplete information or documentation Incomplete applications trigger concerns. As such your SASSA grant payment or application can be flagged due to this. Resolution: Gather all necessary documents and append them to the appeal for clarity. 6. Technical Glitches Online malfunctions or system errors can result in unjust denials. Resolution: Report technical issues, seek confirmation, and submit a physical appeal form as a contingency. Initiating your SASSA SRD Grant Appeal online The SASSA SRD online appeal procedures are as follows: 1. Accessing the SASSA SRD Appeals Page Visit srd.sassa.gov.za and select “Appeals” under the “Services” section. 2. Login or registration Enter existing credentials or register if new to the system. 3. Locating denial notification Click on “Track Appeal Status,” input the ID, and identify the denied application. 4. Reviewing Appeal details and grounds Examine the details and reasons for the denial. 5. Presenting appeal statement and uploading documents Clearly articulate reasons for considering the denial unfair and attach supporting documents for context. 6. Reviewing and submitting the SASSA grant appeal Validate the accuracy of your appeal and submit. You should receive a confirmation along with a reference number. Please keep your reference number for future purposes. Checking SASSA SRD Grant Appeal Status: Staying informed & preventing delays To monitor your appeal status try any of the following means: Online (SASSA Website): Visit srd.sassa.gov.za, log in, and access “Track Appeal Status.” SMS: Forward the appeal ID number to 32573 for appeal status updates. Call – Dial the toll-free number 0800 601 011, provide ID and appeal reference numbers for progress updates. Final thoughts on SASSA SRD Grant Appeal The SASSA SRD grant appeal process is crucial. This comprehensive guide empowers applicants with the knowledge to comprehend, counter, and effectively appeal denials, ensuring equitable access to essential financial support.
Read MoreNigeria’s Central Bank bars banks, fintechs from international money transfer operations
As part of sweeping policy reforms aimed at improving liquidity in Nigeria’s FX market, the central bank (CBN) will no longer allow banks and fintech startups to carry out international money transfer operations. According to the new rules published on Wednesday, the bank also increased the application fees for International Money Transfer Operator (IMTO) approval to N10 million [$6,845]. The rules are a revision of earlier guidelines released in 2014. The new rules also set a minimum operating capital of $1 million for foreign IMTOs and its naira equivalent for their indigenous counterparts. Nigeria’s apex financial regulator had previously granted international money transfer licences to fintech companies including Flutterwave, LemFi, PagaTech, Flutterwave, VFD, and Interswitch among others. The revised guidelines didn’t state whether the existing licences would be revoked. The apex bank described the new rules as designed to “liberalise the foreign exchange market and ensure transparency.” It said that commercial banks will be allowed to act as agents for international money transfer services. In another circular, the CBN removed the cap on FX transactions, a rule enabling IMTOs to use the prevailing rate at the official market. The CBN has rolled out new rules this week to improve liquidity in Nigeria’s volatile FX market and boost diaspora remittances and foreign capital inflows. The bank ordered banks to limit their foreign exchange exposure and sell excess dollars after a steep drop in the official naira rate against the dollar. Despite a devaluation last year and a decision to float the Naira, the currency has witnessed even more volatility as the CBN tries to clear a backlog thought to be around $5 to $7 billion. To restore confidence, the CBN has been talking up its efforts to clear the backlog and promised to clear it early in the year. This week, the bank told Bloomberg again that the backlogs would be cleared “within a short time” and “fundamental issues that have hindered the effective operation of the Nigerian foreign-exchange markets” would be resolved.
Read MoreMusk’s Starlink stranded: Botswana rejects satellite internet application
With a planned launch date of Q4 2024, Starlink has had its application to launch in Botswana rejected Starlink’s dream of reaching every corner of Earth has encountered a roadblock in Botswana. The low-orbit satellite service, owned by Elon Musk’s SpaceX, was denied its application to operate in the African nation ahead of a planned Q4 2024 launch. While Starlink submitted its application to launch in May 2023, the regulator found that the company did not share all the necessary information. It is unclear which information Starlink did not provide in its original application. “There were issues regarding missing requirements with the application, which were identified and pointed out,” said a source at Botswana’s Communication Authority. ”They are yet to respond to the issues.” To operate in Botswana, applicants like Starlink must pay an application fee of P5,600, an annual license fee of up to P386,000 (~$28,500), and 3% of annual operating revenue. Starlink continues to face regulatory pushback in Southern Africa. The South African government rejected its application for failing comply with a mandatory requirement of 30% ownership to historically disadvantaged people. In Zimbabwe, legislators based their rejection of Starlink’s application on an EU investigation into X, the Musk-owned social media platform. However, Starlink is licensed in Zambia, Eswatini, Mozambique and Malawi.
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👨🏿🚀TechCabal Daily – Canal + MultiChoice
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية TGIF Cheers to surviving another week of work emails, meetings and existential dread. Enjoy your 48 hours of freedom before we do it all again next week! In today’s edition Kippa’s co-founder skips away Airtel Africa reports 99% profit plunge Nigeria scraps exchange rate for IMTOs Canal+ eyes MultiChoice acquisition Funding tracker The World Wide Web3 Events Startups Duke Ekezie departs Kippa and embarks on a new venture Duke Ekezie Duke Ekezie, co-founder of Kippa, the Nigerian fintech startup, has taken a surprising turn out of Kippa and into a new venture, even as the company embarks on a bold pivot to edtech. Here’s what you need to know: Founded in 2021 by Duke, his brother Kennedy Ekezie, and Uche Jepthat, Kippa was initially a bookkeeping startup that freed entrepreneurs from the drudgery of spreadsheets. In September 2022, Kippa secured a super agent banking licence and then launched its agency banking product—Kippa Pay— which was overseen by Duke. Jepthat left the company in November 2022, shortly after Kippa announced an $8.4 million funding round. In October 2023, due to fierce competition and unprofitability, Kippa discontinued Kippa Pay and laid off 40 employees. In December, Kippa transferred the operations of Kippa Pay to Gpay, a payment subsidiary of Bloc, a Nigerian fintech about to launch banking services. Kippa also struggled to make severance payments to its laid-off employees after it suffered a ₦30 million ($33,516) internal fraud, discovered a month after it shut down Kippa Pay. Knowing when to persevere and when to pivot. On Wednesday, Kippa reportedly pivoted into providing edtech services. One day after the bold new chapter, Duke has decided to step down. While rumours of his departure swirled for months, Duke confirmed his exit and revealed he’s pursuing a new, undisclosed venture. He remains a shareholder and advisor in the company. Moving forward: According to Duke, after closing the agency banking business, he and Kennedy revisited their strategy and identified two key problems during discussions with SMEs and large businesses. Duke mentioned, “One aligned with my goals, and the other with Kennedy’s, so we’ve decided to solve them individually.” He declined to share specifics of the problem he’s looking to solve with his new venture. Access payments with Moniepoint Moniepoint has made it simple for your business to access payments while providing access to credit and other business tools. Open an account today here. Telecom Airtel Africa reports a 99% plunge in profits in 2023 Last year, Airtel Africa, a telecom company operating across 14 African countries faced headwinds from Nigeria’s naira devaluation and reported a loss after tax of $151 million in its Q1—April 1 to June 30, 2023 results. It seems 2023 continued to prove turbulent for the telecom giant as the company recently released its 9-month financial report ending December 2023, of a profit before tax of $2 million—a significant decline from the $523 million profit it recorded in the same period in 2022. Currency devaluation’s sting: Airtel witnessed a significant drop in profits last year due to the decrease in the value of currencies in some of its main markets: Nigeria, Malawi, Zambia, and Kenya. Without these currency impacts, the profit before tax for the nine months ending December 2023 would have been $840 million. The company experienced a 99% decline in profits, mainly due to the devaluation of Nigeria’s naira which cost Airtel $301 million. The country’s apex bank recently injected $500 million to address a lingering FX backlog, as the naira reached ₦1,421 per dollar on the official market this week. Challenges beyond profits: Overall revenue dropped by 1.4% to $3.8 million from $3.9 million in 2022. Despite these external pressures, Airtel Africa boasts a 9.1% growth in its customer base, reaching 151.2 million. This growth was fuelled by a 22.4% surge in data subscribers and a 19.5% increase in mobile money users. Undeterred by the profit decline, Group CEO Olusegun Ogunsanya says it won’t impact their growth plans. The company plans to focus on capital allocation priorities, repay debts, and invest in new opportunities like their recently launched data centre business, Nxtra by Airtel. Airtel Africa’s board also intends to return value to shareholders through a share buy-back programme of up to $100 million starting in early March 2024 over 12 months. Banking CBN scraps exchange cap for IMTOs Nigeria’s apex bank is taking a gamble to resuscitate its ailing currency. The news: The Central Bank of Nigeria (CBN) yesterday eliminated the cap on exchange rates quoted by International Money Transfer Operators (IMTOs). What does that mean? CBN previously controlled the exchange rate at which International Money Transfer Operators (IMTOs) like Western Union and MoneyGram could sell foreign currency to Nigerians. Now, these companies can set their own rates within a certain range. The CBN previously allowed the IMTOs to deviate from the official rate by a maximum of 2.5% (-2.5% to +2.5%). Per local media, the new development is in response to suspected hoarding of foreign currency by Nigerian commercial banks. The FG earlier gave a directive to commercial banks to release non-essential foreign currencies—currencies not needed for legitimate import payments, overseas travel allowances, or student tuition fees—to tame the naira’s depreciation against the dollar. Why is the FG doing this? The latest development represents the government’s attempt to resuscitate its ailing currency. The naira has suffered its worst devaluation in recent times, depreciating over 40% against the dollar since June, when the Central Bank adopted a more relaxed exchange rate policy By allowing IMTOs set their own rates, the move could bring about increased competition, leading to lower exchange rates for Nigerians receiving money from abroad. This policy change could also incentivise IMTOs to bring in their foreign exchange holdings to Nigeria, potentially boosting domestic forex inflows. Zoom out: The CBN’s move to scrap the IMTO exchange cap, while aiming for stability, could bring unintended consequences. Cheaper transfers might come at the cost of
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