- July 27 2023
2023 world’s most expensive laptops
In the realm of luxury gadgets, tech enthusiasts have witnessed extraordinary innovations over the years. From opulent smartphones to lavish laptops, designers continually push the boundaries of extravagance. Two standout creations that have captivated the world with their sheer grandeur are MJ’s Swarovski & Diamond-Studded Notebook and the Luvaglio. They are the world’s most expensive laptops. 1. The Luvaglio laptop The Luvaglio laptop isn’t just one of the most expensive laptops. It’s a legend in the realm of luxury tech, setting an unrivalled standard for opulence and sophistication. Designed by a British luxury goods company, the Luvaglio laptop is an exquisite work of art that boasts a myriad of rare materials and customizable features. At first glance, the Luvaglio mesmerises with its elegant design, characterised by sleek lines and precision engineering. The exterior can be personalised, with clients having the option to select from an array of luxurious materials, including handcrafted wood, genuine leather, and precious metals like gold or platinum. The most iconic feature of the Luvaglio laptop is its customisable diamond power button. The company offers a selection of rare and flawless diamonds, allowing users to choose the one that best suits their taste. Each diamond is intricately placed, and the button itself is designed to be removable, turning it into a wearable piece of jewellery. Beyond its sumptuous exterior, the Luvaglio laptop boasts formidable computing power. Equipped with the latest processors, vast amounts of storage, and ultra-high-resolution displays, it delivers a seamless and immersive user experience. Moreover, the company offers exclusive concierge services, including a dedicated Luvaglio team that is available around the clock to address any customer’s needs. This level of personalised attention ensures that every Luvaglio laptop owner feels like royalty. And the confluence of all these explains why it’s one of the world’s most expensive laptops. 2. MJ’s Swarovski & Diamond-Studded Notebook MJ, a renowned luxury designer, set out to create a truly one-of-a-kind notebook that would redefine luxury computing. The result is a masterpiece that seamlessly blends advanced technology with the brilliance of Swarovski crystals and diamonds. The notebook’s exterior is a sight to behold, adorned with thousands of genuine Swarovski crystals that shimmer under any light. The meticulous craftsmanship and attention to detail are evident, as each crystal is precisely placed to create a mesmerising pattern that runs along the notebook’s sleek aluminium body. This limited-edition gem sparkles like a star on a moonless night, instantly drawing admiration from anyone who beholds it. However, it is not just about the dazzling exterior; MJ’s Swarovski notebook boasts formidable specs to ensure unrivalled performance. Powered by the latest cutting-edge processors, ample RAM, and storage capabilities, this luxurious device offers seamless multitasking and impressive speed. Its vibrant display presents images with unparalleled clarity and colours that pop with lifelike precision. The keyboard is thoughtfully designed, with every key featuring a tiny, carefully cut diamond at its centre. Typing on this elegant masterpiece is a tactile delight. Moreover, the touchpad is lined with Swarovski crystals, adding a touch of magic to every movement. MJ’s Swarovski notebook is the pinnacle of luxury and a symbol of status among the elite. Only a select few can own this exclusive marvel, making it one of the most coveted gadgets in the world and also the most expensive laptop at 3.5 million dollars. Final thoughts on world’s most expensive laptops MJ’s Swarovski & Diamond-Studded Notebook and the Luvaglio laptop represent the epitome of luxury and craftsmanship in the world of gadgets. These masterpieces not only offer cutting-edge technology but also redefine the concept of exclusivity and prestige. For those fortunate enough to own these opulent devices, they serve as symbols of status and sophistication, proving that luxury and innovation can harmoniously coexist in the realm of modern technology.
Read More- July 27 2023
Foreign exchange devaluation impacts Airtel Africa’s $151m loss in Q1 2023
Airtel Africa has reported a loss in their first quarter result for 2023. Airtel’s CEO cites the currency devaluation from Nigeria as a core reason. According to a financial statement published on the Nigerian Exchange Group (NGX), Airtel Africa has reported a loss for its Q1 result in 2023—April 1 to June 30, 2023. Airtel reported a loss after tax for the period under review of $151 million, compared to a profit after tax of $178 million during the same period in 2022. Conversely, the telco’s revenue grew by 9.6% to $1.37 billion in Q1 2023, compared to $1.25 billion in the same period in 2022. Commenting on the financial performance, Airtel Africa’s CEO, Olusegun Ogunsanya, stated that the group delivered a strong operating performance with improvement in both constant currency revenue growth and EBITDA margin despite the challenging macro environment. The telco saw an improvement in voice, data, and mobile money but its results were impacted by foreign exchange headwinds. “This quarter saw the announcement of the change to the FX market in Nigeria which resulted in a significant naira devaluation. We have welcomed this reform as very positive for the medium and long-term development of our business in Nigeria, our largest market. The country offers significant untapped growth potential, underpinned by highly attractive fundamentals. This has supported and sustained a strong operating performance which has seen a five-year revenue and EBITDA CAGR of 23.5% and 27.3% in constant currency, respectively,” Ogunsanya said. Ogunsanya explained that even though the company expected the FX reforms to improve liquidity over time, the devaluation has had a material impact on Airtel’s results. He said the telco has, over the last few years, actively reduced their FX exposure across the group, and this will continue to be a focus area in the future to limit the impact of any future devaluation. Despite these headwinds, Airtel Africa revealed it will continue to invest in Nigeria to enable it to capture the growth opportunity. “This continued investment will facilitate growth, drive continued digitalisation across the country, facilitate economic progress and transform lives across Nigeria,” the report read. The telco’s financial statement also reported that its mobile services revenue grew by 19.1% in constant currency, driven by voice revenue growth of 11.9% and data revenue growth of 29.8%. Mobile money revenue grew by 31.2% in constant currency. Similarly, its total customer base grew by 8.8% to 143.1 million, as the penetration of mobile data and mobile money services continued to rise, driving a 22.0% increase in data customers to 56.8 million and a 24.3% increase in mobile money customers to 34.3 million.
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- July 27 2023
Endowed with $21 million, Kasha wants to transform healthcare in Africa
Interview with Joanna Bichsel, founder and CEO of Kasha on the startup’s recent Series B raise, fture expansion plans and the state of healthtech startups on the continent. Last week, Rwandan healthtech startup Kasha announced a $21 million Series B raise led by Knife Capital. Founded in 2016 by Joanna Bichsel, the startup provides a digital retail and last-mile distribution platform for pharmaceuticals and fast-moving consumer goods (FMCGs). TechCabal caught up with Bichsel to learn more about the company’s product offerings, its recent fundraising as well as its quest to positively impact healthcare in Africa and beyond. TechCabal: Please tell us more about Kasha’s product offering Joanna Bichsel: Kasha is East Africa’s leading platform for last-mile access to health. We sell pharmaceuticals and fast-moving consumer goods to consumers, resellers, pharmacies, hospitals, and clinics. We focus on the mass market customer and also do digital, retail and wholesale sales. We also work with pharmaceutical manufacturers and global health organisations. The focus we have is around access to health products and really, we’re aiming to disrupt the global health industry. So right now, the way it operates is that there’s no visibility on what people actually want in terms of health products. The processes for reaching the last-mile customers are also very ineffective in both urban and rural markets. With Kasha, we built a very wide distribution network that goes to the last mile with agents in communities around the country. It’s basically digital ordering. So people can confidentially order their health products and then we deliver. TC: How prominent is the problem that Kasha is trying to solve? JB: Kasha started in Rwanda and it was built to be a global company. We are still on our way to becoming a global company because the problem we are addressing is pretty much a global problem. We started in Rwanda and then we expanded to Kenya which is now our headquarters. Additionally, we are also starting operations in South Africa soon. We are also launching operations in West Africa either by the end of Q3 or early Q4. In general, the problem that we’re aiming to serve impacts billions of people around the world across emerging markets including Southeast Asia and Latin America. So we’re Africa first, but there’s potential really to expand globally. TC: How much traction has Kasha gained so far? JB: We have grown quite well, especially over the last three years. We have achieved 10x growth every 12 months. From our Series A to our Series B, our annual revenue has grown 50x and that’s really helped us get to where we are. We are serving a very large market segment. and there’s a lot of demand for quality, affordable health products as well as household goods. With the Series A funds, we really focused on expanding our distribution network across Rwanda and Kenya, and then just driving sales on top of that platform that we built out. So the growth has been strong. And we’re not stopping. The goal is to continue to have very exponential growth as we move forward. TC: Kasha announced its $21 million Series B raise last week. What was that fundraising process like considering the fact that we are in a VC downturn at the moment? JB: It was definitely a journey. We started fundraising before the economic downturn. After the downturn happened, it slowed a lot of things down. For example, we were having a lot of conversations with US-based VCs, and others around the world as well, but after the economic downturn happened, a lot of international investors just basically stopped investing in the region. They really became more conservative, deciding to focus just on startups within their countries. A Series B raise requires more capital, and the investor ecosystem across the continent is still very much developing. So when you’re looking to do larger ticket sizes, you have to tap into a global investor market. For us, we were actually quite lucky in the sense that around the time when the economic downturn happened, we were able to bring on a pretty large investment that basically acted as a bridge round. So we were able to bridge our way through the economic downturn, just because of that capital which came in at the right time. And so our fundraising absolutely took longer than we expected because of the economic downturn, but because we raised a bridge in between, we were able to still finish successfully. Image source: Provided TC: What will the raised capital be used for? JB: Expansion is a key part of it. We are growing into being a leading pan-African platform offering last-mile access to health and this funding will go a long way in helping us achieve that. We also have an enterprise customer segment which has so much opportunity to make us a very high-margin business. We will also be investing a lot in our product and technology. TC: What would you say is the state of healthtech on the continent at the moment? JB: It’s a super exciting time on the continent right now for healthtech. When Kasha started, healthtech companies were seen more like social enterprises and not as high-growth commercial companies. I think it’s absolutely critical we change that by building strong commercial, financially sound healthtech companies that are scaling. And that’s exactly what we are doing at Kasha. It’s been quite the journey from the beginning because there weren’t as many commercial investors involved within the healthtech space. It was mostly impact investors. But what you’re seeing now is healthtech companies like Kasha that are scaling and attaining high revenue growth and that’s attracting the attention of commercial investors. There are also a lot of pharmaceutical manufacturers and others that want to do business on the continent and need better channels and visibility and so the opportunity is definitely there for healthtech innovators. What we need to do as healthcare companies is to grow strong businesses and build out
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- July 27 2023
Pro-Sudan hackers attack digital services in Kenya
Since Sunday, websites belonging to government agencies, media, hospitals and banks have been targeted by hackers claiming to be exacting revenge on behalf of the Sudanese regime. Anonymous Sudan, a pro-Russian hacktivist group says it is responsible for a Distributed Denial-of-Service (DDoS) attack which intermittently took websites belonging to Kenyan media, hospitals, universities, and businesses, including Safaricom, offline. The group had previously been involved in a series of “unprecedented escalation in DDoS attack sophistication” with pro-Russian hackers that targeted Western websites including Microsoft, according to a report published by Cloudflare earlier this year. Denial of service attacks are cyberattacks where the attacker prevents users from accessing a website, online service, or connected device, by flooding the servers with internet traffic. The group appears to have turned their attention to their southern neighbour this week after a video of a Sudanese general allegedly taunting Kenya’s president went viral on social media. On Sunday, it claimed it had attacked Kenya’s eCitizen website which hosts government services like visa application, business registration and more. It also claimed to have attacked Kenya Commercial Bank, Kenya’s second-largest bank measured by assets, and the country’s largest telecom, Safaricom. It also attacked media websites including the one of The Standard Group, Kenya’s oldest newspaper, as well as the website of the government-owned Kenya News Agency. On Monday, 10 university websites were hit, including the University of Nairobi. And on Tuesday it targeted seven hospitals and the website of Kenya’s transport agency. The National Transport and Safety Agency allows Kenyan residents to apply and pay for driving licenses among others. The group said it attacked Kenya because it “released statements doubting the sovereignty of [the Sudanese] government.” Sudan has been locked in internecine conflict between the Sudanese Armed Forces (SAF) and the paramilitary Rapid Support Forces (RSF), rival factions of the military government of Sudan since the 15th of April, 2023. Last month, the Sudanese government rejected the appointment of Kenya’s president, William Ruto as leader of a mediation group after accusing the East African nation of lacking neutrality. African states are vulnerable to cyber attacks from foreign hackers, but typically don’t attack each other—at least not publicly. According to Nathaniel Allen and Noëlle van der Waag-Cowling, both cybersecurity researchers, “African countries tend to have low levels of cyber maturity and possess limited offensive and defensive cyber capabilities. Virtually all rely on foreign actors to supply critical information.” Anonymous Sudan might be pro-Sudan, but it also has significant links to pro-Russian hacktivist groups. The targeted websites appear to be functioning normally at press time. Digitising government services is a key part of President Ruto’s agenda. Earlier this year, his administration said Kenyans could access 5,000 government services online. The services include business permits and visa applications. All were affected by the denial of service attacks. Africa’s growing digital economy is attracting the attention of hackers and digital crime groups. Much of the infrastructure undergirding the continent’s digital boom is often lacking adequate cyber protections in policy and practice. Digitising government services is often hailed as a model for creating efficiency and improving access, but it also opens new vulnerabilities. In a world of increased digitalisation, when digital public services are unexpectedly and suddenly unavailable it can cause indirect and direct economic and financial losses and even physical harm, in some cases. Across the continent, cybersecurity incidents result in losses estimated at between $3.5 billion and $4 billion every year.
Read More- July 27 2023
SA houses 78% of all healthtech innovators in southern Africa, according to report
South Africa dominates healthtech innovation in southern Africa, according to a report by healthcare consulting firm Salient Advisory. With the country also attracting the most VC capital in the region, it is perhaps not surprising that innovators are following where the money is in an industry where capital is still hard to come by. According to healthcare consulting firm Salient Advisory’s “Innovations in Digitizing Health Supply Chains” in Africa report, 78% of all healthtech startups and innovators in the southern Africa region are based in South Africa. The report, whose supporting study was funded by the Bill and Melinda Gates Foundation, features almost 350 innovators in the health supply chain in Africa. It highlights the significant increase in partnerships between governments and health tech supply chain innovators across the continent. Some more stats on the state of healthtech innovation in the region are as follows: 33% of the companies in the region were founded in the last two years. 12% of the companies were solely founded by women. 10% of the companies have a mixed-gender founding team. $7.3M in external funding has been raised by innovators in the region. 12% of companies operate in more than one country, some operating beyond Southern Africa. 7% of innovators have established government partnerships in South Africa, Zimbabwe, and Malawi. Across the continent, Plug N Play Ventures and Launch Africa cut the most equity and debt cheques for healthtech innovators. The Bill & Melinda Gates Foundation and Google’s Black Founders Fund, on the other hand, have provided the highest number of grants. Additionally, innovators headquartered outside the continent have also raised 83% of total funding ever reported, with large e-commerce giants and medical drone delivery operators capturing the bulk of external investment. Similarly, gender financing gaps are also evident as companies founded solely by women make up 8% of all startups but have received only 2% of all reported funds overall time. Lack of access to equity financing has resulted in women-led companies relying more heavily on debt and grants. “African health innovators have demonstrated an impressive ability to utilise technology for the optimisation of supply chain solutions and the improvement of access to medicines. We are delighted to witness this progress, particularly as it coincides with an increase in government partnerships, which will advance positive health outcomes,” said Hany Abdallah, senior program officer, supply chain systems at the Bill and Melinda Gates Foundation.
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- July 27 2023
TechCabal Daily – Coup!
In partnership with Share this newsletter: Lire en Français اقرأ هذا باللغة العربية Happy pre-Friday There’s been a coup in Niger. The country’s military has ousted President Mohamed Bazoum and overthrown the parliament. The soldiers took to national TV, late last night, to announce the coup. All national borders are now closed and a curfew has been enforced. This is the seventh coup in Africa since 2020, following behind coups across Burkina Faso, Chad, Tunisia, Guinea, and Mali. In today’s edition Namibia regulates crypto with new laws CBN unfreezes bank accounts of BetNaija, Risevest and others Copia’s third round of layoffs Google allows Nigerian use Verve cards The World Wide Web3 Event: TC Live Opportunities Cypto Namibia signs law to regulate crypto exchange Image source: TechCabal Good news for crypto lovers in Namibia: the country has officially approved the licensing of crypto exchanges. The Namibia Virtual Assets Act 2023 was successfully passed earlier this month. The Act is a bill to regulate digital assets, cryptocurrencies, and Virtual Asset Service Providers (VASPs) in the country. This new legislation marks a reversal of Namibia’s previous stance on the ban on cryptocurrency in 2017. Although the specific enforcement date for the new set of laws remains unclear, the country’s ministry of finance is responsible for determining a date to make them effective. The new law: The main objective of the new law is to regulate the virtual asset market, safeguard consumers, prevent market abuse, and combat money laundering activities. Additionally, the law requires individuals or entities involved in providing virtual asset services to register with the regulatory authority. Those who do not register appropriately and continue their operations could be subject to severe penalties. These penalties include fines of up to N$10 million ($570,000) and imprisonment for a maximum of 10 years or both. Zoom out: Despite the bill, the country’s central bank, the Bank of Namibia (BoN) warns the public that because virtual assets like cryptocurrencies are not legal tender, people who transact with them do so at their own risk. 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. Policy CBN unfreezes bank accounts of BetNaija, Risevest and others Image source: Zikoko Memes Nigeria’s central bank unfroze 440 bank accounts of some individuals and companies that it previously accused of “illegally trading” in foreign exchange in Nigeria. The apex bank froze the accounts two years ago to investigate the firms. The affected firms included tech startups like BetNaija, RiseVest, Bamboo, Chaka, Trove, Fliqpay and Yellow Card. Why are they being unfrozen? The account freezing directive was originally issued by the former CBN governor, Godwin Emefiele. However, he has since been replaced by the acting CBN governor, Folashodun Shonubi. Interestingly, Shonubi swiftly ordered the banks to lift the restrictions on the frozen accounts within 24 hours of raising the interest rates to 18.75%. Some of these firms bring foreign exchange to the country so experts think that the apex bank is unfreezing their accounts to keep more doors open for forex to come in. Layoffs Copia lays off staff for the third time Image source: Copia Copia, a Kenyan e-commerce platform, has laid off 25%—350 members of its workforce. This is the third time this year that Copia has trimmed its headcount. Earlier in the year, the company laid off 50 Kenyan workers, and in April, they closed down their Ugandan operations, resulting in 300 employees losing their jobs. With this most recent layoff, the total number of people let go now stands at about 700. Why all the layoffs? The job cuts are coming over a year after Copia raised $50 million in a Series C round. The company says it is laying off staff due to money problems but that it is taking these measures to reduce the costs of operation, especially because of the state of the economy. This move aligns with the broader trend among many companies that have been prioritising cost-cutting strategies for over a year now. Reducing labour costs has become a common approach adopted by numerous companies facing economic uncertainties and challenges. Fintech Google Play Store introduces Verve payment option in Nigeria Image source: BusinessDay Google has announced its partnership with Verve to make digital transactions on Google Play Store easier and more accessible for Nigerians. What is Verve? Verve is a pan-African payment card scheme owned by Interswitch that can be used to make payments at merchants, withdraw cash from ATMs and transfer money between accounts. Nigerians can now use their Verve cards to make purchases on the Google Play Store, Google will conduct the transactions in Naira (₦), and banks will treat these transactions as local transactions. How to use the Verve card on Google Play Store:Open the Google Play Store app, choose the app you want to purchase and click on the price of the app, select “add credit or debit card” and enter your Verve card details. You can also visit pay.google.com and log in with your Gmail account, select “Add a payment method” and enter your Verve card details. Once you have saved your card details, you can return to the Google Play store and make purchases. Nigerians can now access the apps they need without stress which contributes significantly to a more inclusive digital environment for them. Crypto Tracker The World Wide Web3 Source: Coin Name Current Value Day Month Bitcoin $29,430 + 0.59% – 3.20% Ether $1,876 + 0.93% + 0.18% Worldcoin $2.27 – 7.90% + 36.10% Kaspa $0.03 + 2.46% + 58.41% * Data as of 05:00 AM WAT, July 27, 2023. Events TC Live: The State of Tech in Africa, Q2 2023 Join us on Friday, August 4, 2023, for a special edition of TC Live, as TechCabal Insights will be launching The State of Tech report, the Q2 2023 edition. This is our flagship report offering a bird’s eye
Read More- July 26 2023
Copia fires 350 employees in third round of layoffs
Copia, a Kenyan e-commerce platform serving low-income households, has laid off 25% of its 1,800 workforce. The company blamed labour costs and a need to improve profitability for the layoffs. Copia, a Kenyan e-commerce platform that serves low-income households, has laid off 25% or 350 members of its workforce. The e-commerce company confirmed the layoffs in a statement to TechCabal. Part of the company’s statement said, “The limited restructuring process will likely impact less than 25% (about 350) of the permanent workforce. The majority of Copia’s employees are not affected by this,” says Copia. In compliance with Kenyan labor laws, the employees will be given a one-month notice and leave Copia before September. “Copia management will decide on the affected staff, who will then be informed of their employment status after one month,” the statement from Copia adds. It is the third time this year that Copia has trimmed its headcount after it laid off 50 Kenyan workers at the start of the year. In April 2023, Copia closed its Ugandan operations making 300 employees redundant. In 2023 alone, Copia has sacked 700 people. What’s driving the layoffs? In January 2022, Copia raised $50 million in a Series C round. And while the company says its in a good position financially, it claims that the layoffs are a way of reducing labour costs while it keeps its eye on boosting profitability. Copia currently employs 1,800 workers, but the company’s headcount will be 1,450 after today’s redundancies. Employees impacted will receive a severance package and other benefits. TechCabal confirmed that regular operations continued despite the layoffs, with Copia claiming that it is “optimising a number of key processes in its operations to enable it become more efficient in serving its Customers and partners.” Official Copia statement to TechCabal Given that the economic downturn and the constrained capital markets are likely to continue for some time, Copia is optimising a number of key processes in its operations in Kenya to provide a better service to its customers and to drive sustained operating profitability. These changes require Copia to undergo a limited restructure of its operations. While improving our operating model through digital, tech-led initiatives to drive faster profitability, this restructuring process will likely impact less than 25% of the permanent workforce and will be undertaken in full compliance with Kenyan labour law and with sensitivity to all employees affected by the process. Copia’s Kenyan operation is rapidly growing, providing e-commerce services to middle income consumers through an unrivaled high-quality, low-cost distribution network of over 50,000 agents. In addition, its service also provides local manufacturers with a unique, efficient route to market. This limited restructure process is intended to ensure that during these economically challenging times, we will continue to focus our resources on the critical levers of business success and remain a lean and sustainable business for the long-term. This decision is consistent with many of the best companies in Africa and across the world which are responding to the market environment and prioritizing profit. We are committed to working hard to achieve our goals and deliver sustainable profitability faster.
Read More- July 26 2023
How to fix the Nigerian economy according to the World Bank
The June 2023 edition of the Nigeria Development Update (NDU) by the World Bank contained key macro-fiscal policy recommendations for the Nigerian economy. Since he assumed office, President Bola Tinubu has implemented several reforms including the removal of fuel subsidies and the unification of the foreign exchange rate, albeit with far-reaching effects on the Nigerian economy. In the June 2023 edition of the Nigeria Development Update (NDU) [pdf], the World Bank said these reforms are crucial measures to begin to rebuild fiscal space and restore macroeconomic stability. The report also highlighted key macro-fiscal policy recommendations to help rejig Nigeria’s economic growth in the second half of the year. Following the subsidy removal, the Nigerian government is projected to achieve fiscal savings of approximately N2 trillion in 2023, equivalent to 0.9% of GDP, according to the report. These savings are expected to reach over N11 trillion by the end of 2025. But the policy has led to higher fuel prices and attendant hardship for citizens. To this end, the World Bank recommended that the government provide immediate cash compensation to Nigerian households to cushion the price impact of the subsidy reforms. Earlier this month, President Tinubu asked the National Assembly to approve N500 billion for palliatives. To build on the PMS reform and rebuild fiscal space, the World Bank recommended the removal of tax exemptions on petrol products: simply put, Nigeria should start charging taxes on petrol. Also on taxation, the World Bank advised an improvement in tax administration to “ensure the collection of the newly introduced excises on telecommunication, single-use plastics, and high-polluting vehicles” and a data-driven approach to tax audit. After a series of recently announced tax policies, President Tinubu this month set up a committee on fiscal policy and tax reforms headed by Taiwo Oyedele, a former Fiscal Policy Partner and Africa Tax Leader at PwC. To sustain and deepen FX policy reform, the World Bank recommended the removal of the restrictions for the list of 43 items. Despite collapsing all forex windows into the Investors & Exporters (I&E) window last month, the CBN had insisted that importers and exporters can’t get FX from official windows for these 43 items. Experts have said the ban negates the idea of the unification of the exchange rates and creates a demand for the parallel market. As journalist, Mayowa Tijani put it in this article, “If CBN and President Bola Tinubu are really serious about unification, the 43 items situation needs to go”. In the NDU report, the World Bank also harped on the need for active communication and clarity about the “clarity about the new FX policy with the focus on a unified, market-reflective, transparently-determined rate”. The acting CBN governor yesterday said the apex bank is encouraging the FX market to be efficient as it looks to ease the demand for FX. Nigeria’s headline inflation hit a seven-year high of 22.79% in June, driven by a rise in the prices of food. Yesterday, Nigeria’s Central Bank raised the benchmark lending rate to 18.75%, extending its months-long fight against rising inflation. In the NDU report, the World Bank urged the CBN to continue reducing its subsidised lending to medium and large firms and end government borrowing. Two days before the start of Bola Tinubu’s Presidency, the Nigerian Senate raised the federal government’s threshold for borrowing money from the CBN from 5% to 15%, raising concerns over rising debt. The Buhari administration, for instance, borrowed a record N22.7 trillion from the CBN. While it remains to be seen if the Tinubu government will do the same, chances are the history of government lending will most likely be retained.
Read More- July 26 2023
As M-PESA plans to enter Ethiopia, it faces a stiff rivalry from Ethio Telecom’s Telebirr
Safaricom launched in Ethiopia in 2022, yet its lucrative mobile money service, M-PESA, is yet to launch. It faces competition from Ethio Telecom’s Telebirr, with 34.3 million subscribers. Both services will seek to appeal to Ethiopia’s mobile money users. In October 2022, Safaricom officially launched operations in Ethiopia after months of lobbying and bidding, which cost $850 million in license fees. However, the launch is just the beginning of its story. Safaricom’s biggest revenue driver in its home country, Kenya, is yet to be introduced in its latest market—the popular mobile money product, M-PESA. The imminent launch of M-PESA in Ethiopia, which will cost the telco an extra $150 million in fees, raises the question – can it compete against a recently established rival, Telebirr, offered by the state-owned Ethio Telecom? M-PESA’s dominance in Kenya Before looking into the potential rivalry in Ethiopia, it is worth examining M-PESA’s performance in its home turf, Kenya, where it has been operational since 2007. To say the least, M-PESA has been and continues to be a success, attracting millions of users and generating billions in revenue for Safaricom. While there is room for improvement in transforming the platform into a revolutionary product, M-PESA has successfully sealed partnerships in the financial space over the past few years. One notable M-PESA-based product is a super app, which integrates services from various companies. By integrating mini apps in the M-PESA ecosystem, such as movie ticketing services, customers no longer need to download multiple apps for each service. M-PESA also offers loan and savings products (M-Shwari and KCB M-PESA), an overdraft facility (Fuliza) in collaboration with two banks (KCB and NCBA), and a service tailored for teens (M-PESA Go). It has expanded globally through partnerships with companies like VISA (M-PESA Global) and remittance services such as TerraPay. These offerings have allowed M-PESA to amass a substantial and loyal user base. As per Safaricom’s full-year report, the mobile financial service reported 32.1 million customers by the end of the financial year in March 2023. The service recorded an 8.8% year-on-year growth in revenue, reaching KES 117.19 billion ($824 million), and an increase in transaction volumes, with 21.4% growth to KES 35.86 trillion ($252 billion) and 33.5% growth to 21.03 billion, respectively. M-PESA’s reach extended to businesses and consumers, with one-month active customers rising by 5.2% to 32.11 million. The Safaricom report further showed growth in agents, recording a slight jump of 0.1% to over 262,000, and active merchants under Lipa na M-PESA, its payments service, grew by 23.1% to over 606,000. The mobile money service continues to be the primary revenue generator for Safaricom, accounting for a significant 39.7% of the company’s service revenue. Telebirr’s emergence in Ethiopia Contrastingly, Ethiopia’s digital financial landscape has changed with the introduction of Telebirr, a mobile money product that Ethio Telecom runs. Telebirr was launched in August 2021 in collaboration with Dashen Bank to meet the country’s increasing demand for digital financial services and drive financial inclusion. Telebirr has gained popularity, attracting an extensive user base of 34.3 million subscribers, and has facilitated transactions worth ETB 679.2 billion ($12.3 billion). The development shows its early success in Ethiopia’s financial market. The product covers three digital financial services: Telebirr Sanduq, Telebirr Mela, and Endekise. Telebirr Mela and Endekise have successfully provided over 4.1 billion Birr ($74.4 million) microloans to 2.4 million customers. Over 768,000 customers have used Telebirr’s micro-savings, adding up to more than 3.6 billion Birr, through Telebirr Sanduq. Telebirr partnered with the Commercial Bank of Ethiopia to further expand its services to introduce more financial services similar to those offered by M-PESA, such as loan and savings products. Telebirr has developed a network involving 615 service centres, 136 master agents, and over 107,300 agents. According to a financial statement seen by TechCabal, integrating various banks allows for money transfers from 23 banks to Telebirr and vice versa, making the service more convenient and versatile. “In addition, integration with Banks is completed enabling money transfer from Bank to Telebirr in 23 Banks and from Telebirr to Bank in 21 Banks,” Ethio Telecoms noted in its 2022/2023 annual report. Telebirr has also been inspired by e-Citizen services in Kenya through partnerships with Ethiopian government agencies. “521 governmental and non-governmental institutions have integrated their payment system with Telebirr as part of building digital Ethiopia,” reads a statement by the telecom. Outlook As Safaricom prepares to introduce M-PESA to its 4-million customer base in Ethiopia, it faces stiff competition from Telebirr, which has quickly carved a niche in the Ethiopian financial landscape. While millions of users mark M-PESA’s track record in Kenya, Telebirr’s early success in Ethiopia cannot be ignored. As both services evolve and expand their offerings, the battle for digital financial supremacy in Ethiopia will intensify. Only time will tell which platform emerges as the preferred choice for Ethiopians in their quest for financial inclusion and digital financial services.
Read More- July 26 2023
Central Bank’s decision to unfreeze the account of firms illegally trading forex may signal new beginning
Nigeria’s central bank unfroze the accounts of some firms “illegally trading” in foreign exchange in Nigeria. It could symbolise new beginnings Two years ago, the Central Bank of Nigeria froze the accounts of companies offering Nigerians access to securities and investment options in both local and international markets. It accused them of engaging in “illicit forex transactions” and vowed to investigate them. Consequently, the CBN ordered banks to block the accounts of over 400 companies. Some of the companies affected included tech startups like BetNaija, RiseVest, Bamboo, Chaka, Trove, Fliqpay and Yellow Card. A reversal of earlier stance Less than 24 hours after the acting CBN governor, Folashodun Shonubi, and Emefiele’s replacement raised interest rates to 18.75%, banks were told to lift the restrictions on the bank accounts of 440 individuals and companies. Two experts who spoke to TechCabal said the apex bank reversal of its earlier stance is a means of bridging a gap where foreign investments can flow into Nigeria. An analyst at Meristem Securities Limited, Fifunmi Laosebikian said the CBN is trying to be flexible while reducing barriers for trade. “Some of these firms bring foreign exchange to the country and it is important that they keep that path open,” he said. Bright Enabulele, a cryptocurrency expert believes collaboration can lead to the establishment of clear and comprehensive regulations that protect consumers, foster market stability, and promote responsible growth. While both experts seek harmony between both the CBN and the companies offering Nigerians access to securities and investment options in both local and international markets, patience is key in looking forward to how both sides will play.
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